« on: Today at 01:58:16 AM »
Canon has upped it's profit guidance because of devaluation of the JPY. That basically confirms that there is no price reduction in the offing. Canon is just going to use the forex gains to boost their balance sheets.
Canon doesn't play the fx market -> they price in yen and pay their staff in yen...the 5d mkii was launched in yen as was the mkiii...both actually less than 5000 yen apart despite a 4 year gap, thats fifty bucks increase in american dollars between 2008 to 2012 for all the extra features (more af points, higher iso etc.).
If canon were pricing their products in foreign currency and paying their costs in domestic...well that would be the same as you having a Norwegian Krone home loan whilst being paid in American Dollars => R I S K Y. Stocks who run un-hedged fx risk get hosed by brokers and investors.
Canon guided higher probably because they're selling more products (volume boost) thanks to more affordability in overseas markets thanks to the weaker yen...WHY cos' they price in yen! Would also explain why people on this site recently refer to increase in mkt share that canon is enjoying over other jap cam companies
There are some many misstatements in your above posts I wouldn't know where to begin ... I suggest you read this -
The only Multi National Companies that sell products into Foreign markets that Don't Play/Hedge the FX Market against fluctuation Currencies, are the ones you no longer see in Business. For a Company the size of Canon, with the Majority of sales in Foreign Currencies NOT to take into account FX Exchange rates in their fiscal Policy going forward & Hedge those Positions, is a reasonably straightforward recipe for disaster.
Dilbert (i have to admit) made an excellent point in his earlier Post, Canon incur costs to get a product to Market, those Costs are incurred with a 3 to 6 month Historical Position, if the Current weak Yen continues for the next 6 to 12 months, you might see a reduction in Canon equipment, but I wouldn't hold my breath, Sales Prices are determined by the Market, if Nikon starts reducing prices, so will Canon, but if demand remains the same, Canon will simply reap the benefits of a weaker Yen/USD, it's called Business.
I'm pretty sure you wont see a Honda/Toyota/Suzuki Car at any any reduced price in the near future, unless the Market dictates it by other Car Manufactures reducing price to get Market Share.