Nikon Corp. this past week announced they will increase the annual shipment of digital SLRs from 1.75 to 2.0 million units, while decreasing the shipment of compact digital cameras from 7.1 to 6.5 million units. Nikon has begun focusing more on digital SLR cameras and interchangeable lenses, which provide wider profit margins than compacts.

Nikon expects the brisk sale of their digital SLR product line to continue into 2007. Their projected operating profit up to March, 2007 has been increased from 31 billion yen to 36 billion yen ($305.5 million).