Canon Withdrawing from Budget Compact Camera Market

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mailman88
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Canon Withdrawing from Budget Compact Camera Market
7 months ago

A report from a Japanese newspaper cites a Canon executive’s comments that Canon will begin to withdraw from the budget-oriented compact cameras over the next year or two. The report notes that low-priced compact camera sales have plummeted due to the rise of the smartphone camera market.

Canon will instead focus its efforts on DSLRs and high-performance compact cameras going forward. No mention was made of Canon’s mirrorless camera efforts.

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Marco Nero
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Great news... my thoughts on why...
In reply to mailman88, 7 months ago

mailman88 wrote:

A report from a Japanese newspaper cites a Canon executive’s comments that Canon will begin to withdraw from the budget-oriented compact cameras over the next year or two. The report notes that low-priced compact camera sales have plummeted due to the rise of the smartphone camera market.

Canon will instead focus its efforts on DSLRs and high-performance compact cameras going forward. No mention was made of Canon’s mirrorless camera efforts.

This is the best news I've read in a long while but don't expect them to fully abandon the low-end market.  There's always a lot of very serious money to be made in a stripped-down low-priced camera and anyone not filling this niche will eventually return to do so.  People will always want a quality compact to gift to family and friends.
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Canon once came to the conclusion in the mid-2000s that they were making too many camera models.  Around 2002, Canon even withdrew all the cameras with a "5" designation (any camera with the number 5 in its name was withdrawn) when it became obvious that Canon had so many cameras to choose from that it was actually affecting the salespeople's ability to conclude a sale.
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To explain briefly:  Canon had so many models on the salesfloor of any store that customers were confused and unable to choose between the models (which were quite similar to one another) t- this meant they would eventually decline to buy right there and then... because they couldn't decide... and that meant they browsed to other non-Canon brands and often bought one of those instead.  So Canon concluded there were simply too many choices and elected to cut their stock to make the decision-making easier and more streamlined.

You know it's all over when Canon release official marketing posters giving away free food etc with their cameras as an "add-on".
By getting rid of the many cheaper-end cameras today, Canon can now concentrate their resources and advertizing on those models that best pay the bills.  I think it's a surprise but inevitable.  Those cheaper cameras are often superseded by the fact that everyone today has mass-ownership of smart phones & iPads with cameras built into them. 
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I ALWAYS carry a Canon high-end Subcompact with me wherever I go. Every day of the week, every week of the month, every month of the year.  Year after year.  I use it for anything and everything.
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But last week, on Valentine's Day, my wife and I went to dinner and a movie and I left my current camera (Canon PowerShot s95) at home for the first time.  I brought with me a new Apple iPad Mini.  It's tiny but even in low light it takes an adequate photograph.  See example below.  This is what Canon are up against.  Who wants to waste a couple of hundred dollars on yet another electronic device when they already have a camera built into their iPhone, iPad, iPod etc?

Taken with my Apple iPad Mini

Now Canon's mirrorless cameras are going to become a very interesting subject over the next few years.  Last month a handful of EF-M lens patents were published by the Patents office.  And we know that Canon have announced the new interchangeable Electronic Viewfinder (EVF) - which I believe was being designed for the EOS-M Pro model.  With the compacts in the backseat, I think we can expect to see some exciting days ahead.  DSLRs will become more advanced as they phase out the low-end (cheaper) DSLRs.  But remember the predictions that the public sale of DSLRs will be all but dead in just 5 years.  If those predictions prove prophetic, we will then see a final camera evolution... probably to a new type of hybrid system with only full-frame DSLRs being on the table for professional and serious enthusiast applications.

More visual appeal in a meal ....from the Canon EOS-M

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Marco Nero.
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filibuster
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Re: Great news... my thoughts on why...
In reply to Marco Nero, 7 months ago

There are plenty of other manufacturers to choose from. I’ve had the pleasure of shooting with Canon, Panasonic, Fuji, Samsung, Pentax and Olympus and they’ve all been wonderful tools to use within their particular time-frame of ownership.

Many of us here have drifted in from other forums over the years. Some have come and gone. As or when the time comes, we move on.

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rpm40
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Re: Great news... my thoughts on why...
In reply to filibuster, 7 months ago

Honestly I'd be disappointed to see it- the Powershots and Elphs have been iconic digital cameras for over a decade, and they've mainly been so popular because they just work. No muss, no fuss, good results with a simple point and click.

I do think they go overboard with their models though. Even as an enthusiast, when I was looking for a new pocket cam, I got lost. What do they have now, the A1000, A2000, A3000, 100, 300, 500, sx100, sx200, sx500, sx700, n series, s series, g series, d series.....that is a CRAZY range of compacts.

I think if they shrunk it down to A, SX, S, N, G, D, that's still 6 different models- more than enough. How can people even decide what they're purchasing at this point?

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seri_art
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Re: Great news... my thoughts on why...
In reply to Marco Nero, 7 months ago

I also (almost) always carry my S100. But on a recent trip to Palm Springs, I sometimes decided to not take it and use my Nokia 920 phone instead, just to see what would happen. It did quite well for a phone camera and sure was convenient. No wonder Canon is leaving the low-end market.

Marco Nero wrote:
But last week, on Valentine's Day, my wife and I went to dinner and a movie and I left my current camera (Canon PowerShot s95) at home for the first time. I brought with me a new Apple iPad Mini. It's tiny but even in low light it takes an adequate photograph. See example below. This is what Canon are up against. Who wants to waste a couple of hundred dollars on yet another electronic device when they already have a camera built into their iPhone, iPad, iPod etc?

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John Macri
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Re: Great news... my thoughts on why...
In reply to seri_art, 7 months ago

I've been carrying my S100 less and using my iPhone 5s more & more, but not for serious or low light use. The flash lacks range and without IS, low light shots are problematic. Plus I like to use a CP-L at times.

But on my Med cruise later this year, it's nice to know my 5s can serve as a decent backup to my S100 and FZ200.

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seri_art
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Re: Great news... my thoughts on why...
In reply to John Macri, 7 months ago

My Nokia 920 has IS and that's a plus, but its flash is definitely not strong enough to use for flash fill in sunlight (ask me how I know   My S100 can do sunlight flash fill if you're close enough to the subject.

John Macri wrote:

I've been carrying my S100 less and using my iPhone 5s more & more, but not for serious or low light use. The flash lacks range and without IS, low light shots are problematic. Plus I like to use a CP-L at times.

But on my Med cruise later this year, it's nice to know my 5s can serve as a decent backup to my S100 and FZ200.

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GeraldW
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Re: Great news... my thoughts on why...
In reply to Marco Nero, 7 months ago

Marco,

In addition to the issue of erosion of the low end market, there is also the battle for shelf space.  Few stores can carry the full line of more than 2 or 3 companies.  With Canon (and others) cutting back on the low end of their lines, it may just open a niche market for some less well known smaller companies in that area.  As you noted, there will still be a market for less expensive cameras.  I can imagine a smaller company being delighted with just 10% of Canon's low end sales.

We might also be seeing the beginnings of longer product cycles.  Creating a new model erery year in every line is terribly expensive.  The FZ200 and SX50HS seem to be on at least a 2 year cycle (unless they are dead end products).

By the way, I got myself an S95 and took it on a cruise to Antarctica.  It was with me all the time on shipboard and performed very well indeed.  THe decision to get the S95 and replace the similar S90 was largely triggered by the discussions following your post on the S120.  There was a lot of support for the S95.  I can see why - it's just that little bit better that makes a difference.

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plantdoc
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Re: Canon Withdrawing from Budget Compact Camera Market
In reply to mailman88, 7 months ago

When pics are shown on phone or tablet, the IQ demands aren't very high and good enough is good enough for many disposable pics lost in the cloud

greg

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sailorman
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Re: Canon Withdrawing from Budget Compact Camera Market
In reply to mailman88, 7 months ago

The report is referring to Canon's BUDGET compact cameras - yet many of the replies are about experiences with the 's' range.

I must be missing something - I quite like my wife's S camera (the 110 model), but would never describe it's price (in Canada at least) as a BUDGET compact camera

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