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Sony Stops Taking Orders From Retailers

Gripped by supply problems Sony is now knocking back orders from retailers, with insiders telling ChannelNews that the Company is also directing the stock they get to their own direct order customers.

One area where chip shortages has hit Sony hard is in the digital camera market with the Japanese Company now refusing to take orders for their Alpha 7 II and the Alpha 6400 mirrorless cameras.

The Company has also been impacted in the audio category with limited supplies of Sony TV’s also causing problems for the Company.

The company apologized on its Japanese website for the global delays.

Camera retailers are also reporting that stock of Canon and Nikon cameras are in short supply with the shortages set to impact the revenues of retailers such as Camera House and Teds Cameras.

“There are some products whose next deliveries aren’t expected until the new year,” a store assistant said.

When customers complain, “all we can do is tell them to put in an order and wait,” he said.

“We’ll be in trouble if we don’t have anything to sell for the year-end shopping season,” the worker said.

Sony’s unusual decision to stop taking orders can be explained by delays in stocking components claims Nikki Asia.

“The impact has become more severe than anticipated,” a Sony representative said.

Nikon released a new interchangeable lens last week after delaying the launch by more than 90 days.

“On top of the semiconductor shortage, the coronavirus infections in Southeast Asia have contributed to a combination of factors,” a Nikon representative said.

Canon’s online store in Japan indicates a shortage of stock on a broad range of cameras, with many products flagged as saying deliveries will take a month.

“It’s not just semiconductors, power supply ICs, audio codecs and various other components show signs of shortages,” an analyst at a Japanese brokerage said.

Camera Companies were tipping on a rebound after European and US sales picked up during their summer lifting of lockdowns.

Analysts tracking the digital camera market claim the rebound in demand during winter in Australia, was especially pronounced starting in Western countries, where vaccines were rolled out early.

With their camera businesses recovering, Canon, Nikon and Sony upgraded full-year earnings projections in July and August.

Now supply chain risks have curtailed demand just when it was picking up.

Global shipments of digital cameras dipped below year-earlier numbers for the first time in six months this August.

Then, in September, they plunged roughly 30% to around 700,000 units.

Sony cannot project when the issues will be resolved.

“We will minimize the impact by redesigning and sharing parts, and by building up inventories,” a Sony representative said.

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