Olympus will stop making its V-series digicams, according to a number of overseas financial reports, claiming the demand for compact cameras has been dramatically reduced due to competition from the latest smart-phones.

The company will continue to produce its more sophisticated digicams, including the Tough,   Creator and Traveller lines but will concentrate on its mirrorless interchangeable lens cameras in the PEN and OM-D categories. After selling 5.1 million digital cameras in the last fiscal year, Olympus expects to sell only 2.7 million this fiscal year, one report states. The announcement has met with generally favourable responses in both the financial media and on blog sites.