Nikon is about to become the next Internet of Things competitor.
With a $3 billion deal with Amazon that will see the company launch a digital camera business that is expected to be worth $3.4 billion in sales by 2020, Nikon is poised to become one of the leading companies in the world when it comes to the Internet of things.
“The internet of things is going to be a major player in the digital camera industry,” said Michael Schuhmann, CEO of Nikon, in an interview with Business Insider.
“We have a lot of expertise in this space.”
Schuhmann said the company’s digital camera products are used by thousands of businesses across the world.
He also added that Nikon has been working on new products for IoT applications for years.
Schuhman said that Nikon is “very excited” to be partnering with Amazon, which will become the largest digital camera vendor in the US.
In 2018, Nikon’s camera division, Nikon CCD Technology, was acquired by Amazon.
In a statement, Nikon CEO Dr. Mark D. Holley said, “This transaction provides Nikon with the unique combination of expertise and capital to support the rapidly evolving digital camera market.
We are excited about this collaboration and look forward to developing new products and technologies that will further our vision of building the most innovative, affordable, and convenient digital camera on the planet.”
Amazon acquired Nikon’s CCD Imaging division in 2020, which was responsible for developing the digital cameras that are sold to customers like Amazon, Walmart, and AmazonFresh.
The move meant that Amazon had complete control of all camera development, manufacturing, and sales.
Amazon also acquired the entire Nikon CX series, a camera line that had the ability to produce digital cameras, including the Nikon D4 and D5, which were among the first cameras to be sold in the United States.
The deal will allow Nikon to leverage its expertise in digital cameras for IoT.
The company is known for its camera and light-emitting diode (LED) products.
The company has been focused on building a digital image sensor business for more than 20 years, and the acquisition gives it a massive market share in the segment.
“We’re incredibly excited to be working with Amazon to build a camera division that is a world leader in IoT,” Holley told Business Insider in an exclusive interview.
“The ability to partner with Amazon on a digital sensor business that will provide a platform for IoT development will be tremendous for us.”
Holley also said that Amazon’s purchase of Nikon is a key part of the company moving forward.
“Our vision for the future of our digital camera division is to deliver products that will continue to deliver great value and performance in the future,” Holie said.
“This acquisition will allow us to build upon our position in the market and accelerate our vision to become a leader in the IoT space.”
Amazon will be able to expand its business to include the camera business by using Nikon’s cameras in its cloud computing infrastructure.
Holman said Amazon has a “robust platform” with more than a billion images, and it is “critical to the success of our camera business.”
According to Holley, Amazon has also agreed to help build Nikon’s cloud computing platform.
The acquisition comes as Amazon has been making significant investments in the internet of Things.
In 2017, the company acquired video platform Amazon Alexa for $5 billion.
The purchase is expected add more than 10 million jobs to the US economy.
Amazon is also building its cloud-based video and voice service Amazon Video to take advantage of the cloud, and Holley is excited about that prospect.
“As we work to build an entire ecosystem of Amazon Video that is able to stream high-quality video and audio to customers in their homes and offices, we’re excited to work with Amazon,” Holsey said.
In addition to working on Amazon Video, Nikon also has a significant presence in the drone space.
The cameras that Nikon sells in the marketplace have been used to launch drone models, and Nikon will likely continue to be in the industry as a drone camera manufacturer.
According to Schuhman, Nikon has a very unique and innovative camera platform.
“It’s a very small sensor, very high resolution, very low power, very lightweight, and very compact,” he said.
Holley said that there is an exciting opportunity for Nikon to become an IoT innovator.
“There are going to have to be some smart things that we do in the coming years that will help us compete,” he added.
Holleys comments on the digital photography market have been quite positive, but he also said the industry is in the early stages of adoption of IoT technology.
“I think we are just at the beginning,” he told Business Insider.