Canon's insanity

Started May 12, 2009 | Discussions thread
Contributing MemberPosts: 736
You're missing the supply side
In reply to rattymouse, May 14, 2009

In expectation of a huge decline in demand, Canon cut production dramatically. As it turns out, the decline in demand was not as big as they forecast, so in fact, demand exceeds supply. That why you see a lot of lens out of stock in so many shops.

Let's say they sold last year 10 units. This year, they cut production to 5, expecting a severe contraction in demand. As it turns out, the demand at yesteryear's prices is 8 units, but they only have 5 to sell. Prices must rise. You are not scaring them by not buying, because they didn't produce enough to sell to you.

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