Canon has released its 2014 Q4 financial report, showing an overall profit increase but a continued slump in camera sales. Canon saw its quarterly operating profit - which spans from the three months leading up to December 31 - rise 5.4% year-on-year to the equivalent of $835 million (98.5 billion yen).

Despite the increase, it failed to meet analysts' expectations. Canon's imaging business saw its operating profit fall 6.2% year-on-year, with a 58.3 billion yen operating profit. Sales in that segment fell by 7.3% YOY. By region, the biggest decline in sales came from the Americas, down 11.9% from 2013. 

Smartphones are cited as a big cause for the slowdown in camera sales. In 2015, the maker anticipates its compact camera sales will only hit 7.8 million units, which is a substantial decrease from 2014's 9.03 million, and predicts interchangeable lens camera sales will remain relatively flat at 6.4 million units. Still, Canon expects that this year will prove favorable as far as sales go, with the company estimating it'll bring in 3.9 trillion yen, a year-on-year increase of 4.6-percent.

In November 2014, Canon revealed plans to increase its production at home in Japan, a topic that it touched on earlier this month. The company plans to shifting production of cameras, copiers, and printers toward production in Japan over the next three years, a move spurred by the faltering yen value and dwindling cost-savings from overseas production.