Canon Profit and the camera industry

Started 2 months ago | Discussions thread
OP ByronP Contributing Member • Posts: 866
Re: Actually worse than Nikkei estimate

nnowak wrote:

Canon released their half year report on the 24th, so we can speak to the real numbers instead of the Nikkei estimate. Overall, Canon profits are dropping by 37%, but Imaging division profits are dropping by 50% compared to 2018. Imaging division profits for 2018 were down 33% compared to 2017.

In two years, the number of cameras sold is dropping by 29% on both a unit basis and value basis, but Imaging Division profits are dropping a total of 64%. Basically, the number of cameras Canon are selling is dropping, but profits on those sales are dropping far, far faster.

The Nikkei article pointed to a decline in sales of office devices in Europe for the declining profits, but profits for the Office division are down only 12.9%.

As I said and will say again, "ByronP wrote: When things like this happen it forces companies to change their strategic investments no matter what we as customers like about their products."

Rumour has it that Canon has invested in an updated set of modern sensors.  Sony a bunch of new mirrorless cameras....I say so what.

I suspect that whatever new cameras Canon will announce will use this new technology to try to stay up with Sony in the mirrorless segment.  But, I would not get too excited by the new sensors as they were planned way before Canon or anyone else knew about the fall off of a cliff of camera sales in general and Canon's specifically.  Canon management as well as Nikon's and Sony's, et al at their respective image division and higher are all trying to figure out how to reduce expenses including R&D so cash flow better matches their expectations.  I would not be surprised to see more consolidation in this industry, less investment (R&D) and in general a tightening of expenses (marketing, support, fewer announcements after whatever is in the pipeline has been announced), etc.  I would also suggest that companies that support the camera industry (retail stores, online sites, lenses manufacturers, tripod manufacturers, et al will also see  contractions/consolidations/chapter 11's.

The camera business in my opinion as we have know it for the last 5-10 or so years is about to contract and who knows what will remain when all is said and done.  Anyone who thinks they know in my opinion is has no idea what the management/board of directors/debt holders/stockholders of each of these entities are thinking, what they will do or be forced to do.

My only advice.  No matter what happens your camera in the right hands is still capable of taking great images so enjoy the clicks.

BP

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