There is widespread speculation that Samsung Electronics may exit from the camera market, given the tech giant’s efforts to restore profits across key affiliates.

Samsung has been scaling down its money-losing camera business. Last year, the company combined its camera business into its mobile business division. With no new camera launches since February, the company announced recently it would stop its camera sales in Europe and some Asian markets.

What is more, news reports on Thursday suggested that Nikon would acquire or has already acquired Samsung’s flagship NX1 mirrorless camera technology as part of their strategic partnership.

The two companies didn’t comment on the reports. 

Samsung entered the mirrorless camera market as a latecomer in 2010 with the NX1 system. But it has struggled to make inroads in a market that was already dominated by Sony’s A series and the Micro Four Thirds system partners Olympus and Panasonic.

According to Gfk, a market research firm, Samsung’s market share in the domestic mirrorless market stood at 16 percent, less than half that of No. 1 Sony.

The company also dropped out of the DSLR market a few years ago, where more than 90 percent of sales are dominated by Canon and Nikon.

In the meantime, Nikon, the DSLR leader, has had a hard time elevating DSLR sales amid the soaring popularity for mirrorless cameras that are smaller and lighter with no big difference in pictures.

Industry watchers said their partnership could become a win-win. Samsung would secure cash to focus on more profitable businesses, while Nikon would gain its own sensor and other mirrorless camera technologies.

“Samsung could focus more on cameras for medical equipment and mobile devices,” said an industry source on condition of anonymity.

“But it seems unlikely for Samsung to abandon the whole camera business immediately considering the resources it has invested for decades.”

Ahead of the pending leadership transfer to Samsung Electronics vice chairman Lee Jae-yong from his ailing father, chairman Lee Kun-hee, Samsung Group has revamped its business structure, selling off less profitable businesses.

After this week’s personnel reshuffle, the group is expected to unveil its future business direction, including its business restructuring plans, on Dec. 9. 

By Lee Ji-yoon (jylee@heraldcorp.com)