Digital camera ODM Ability Enterprise, in view of decreasing global demand for digital cameras, is shifting its focus on integrated imaging solutions, leveraging its optical, electrical and mechanical technologies, according to company chairman and president Roger Tseng.
Ability will focus on 360-degree panoramic cameras, sports cameras and automotive camera modules to sustain business growth in 2018, Tseng said.
Digital cameras take up 80% of consolidated revenues currently, consisting of 60% for mid-range and entry-level models, 10% for high-end ones and below 10% for 360-degree panoramic cameras, sports cameras and other types of cameras, Tseng noted.
Global demand for mid-range and entry-level digital cameras will remain weak in 2018, but the outlook for high-end models is still promising, Tseng indicated. Ability expects the revenue proportion for mid-range and entry-level digital cameras in 2018 to slip to below 60%, while the high-end models will rise to about 20%. The ratio of 360-degree panoramic cameras and sports cameras will also increase to over 20%, Tseng said.
Gross margins for mid-range and entry-level digital cameras are below 10%, those for high-end models stand at 12-15% and those for 360-degree panoramic cameras and sports cameras mostly exceed 15%, Tseng noted.
In addition to camera modules, Ability has also begun shipping external AR (augmented reality) and VR (virtual reality) lens modules to China-based smartphone vendors, Tseng said.
The company posted consolidated revenues of NT$8.614 billion (US$285 million) with a gross margin of 13.07% for the first three quarters of 2017. Net profits totaled NT$217 million or NT$0.77 per share during the nine-month period. For November alone, revenues amounted to NT$894 million, dropping 1.1% on month and 30.53% on year.
Ability chairman and president Roger Tseng
Source: Digitimes file photo
