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Author Topic: If the Japanese Yen is now low, why are Canon prices staying high?  (Read 16121 times)

Plainsman

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Re: If the Japanese Yen is now low, why are Canon prices staying high?
« Reply #30 on: May 19, 2013, 01:13:15 PM »
The Japanese Yen has fallen considerably in value in recent months. Japanese exports should therefore be much cheaper now for buyers, so why are Canon prices remaining so high? I'd love a new Canon 5D mk III but current MAP limitations are keeping prices high and stopping me from buying.

Answer= Cartel.

The Japanese (or South Koreans/Chinese) do not abide by the same competition rules as the West whether it is cameras or shipbuilding!

I am not saying prices will not fall but they might fall at a time to suit the Japanese camera companies - certainly not the Western consumer.

In any case the Japanese who have not experienced monetary loosening on the same scale as US/UK etc - until now - have had to suffer sky high yen which was damaging exports.

Unfortunately it does not look like their will be any real competition to Canon Nikon Sony etc from S Korea or China so the Japanese rule the roost for a very long time to come. No competition obviously from the West either as preference is given to the financial sector ie money churning rather than industry (Germany excepted).

« Last Edit: May 19, 2013, 01:17:22 PM by Plainsman »

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Re: If the Japanese Yen is now low, why are Canon prices staying high?
« Reply #30 on: May 19, 2013, 01:13:15 PM »

Jens_T

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Re: If the Japanese Yen is now low, why are Canon prices staying high?
« Reply #31 on: May 19, 2013, 01:21:52 PM »

Answer= Cartel.

The Japanese (or South Koreans/Chinese) do not abide by the same competition rules as the West whether it is cameras or shipbuilding!


Apologies taking this off-topic but I have to disagree to the way this statement is made, Plainsman.

Yes - there are governments protecting / supporting certain industries. Yes, competition is often not perfect. But that applies to most countries - the dispute between the US and EU about subsidizing / protecting Boeing / Airbus is just one example.

The whole FX impact topic has nothing to do with cartels. Such behaviour is normal business and can be found in any corporation, regardless of HQ location. Please consider this before accusing other countries of foul play.
But please let's not get into monetary politics :)

BR
Jens

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Re: If the Japanese Yen is now low, why are Canon prices staying high?
« Reply #32 on: May 19, 2013, 01:55:33 PM »
Several good and reasonable reasons have been identified here. But one that hasn't been mentioned that also contributes to this is that Canon is a multinational company. Its costs cannot be limited to any one nation or one currency.

A falling Yen does not reduce the costs of its production facilities in other countries and it may actually increase some of its costs for materials and labor.

Another major consideration – Advertising makes up a huge percentage of a company's total costs. A falling Yen is not going to reduce the cost of advertising in National Geographic or any of the hundreds of publications that Canon advertises in. They have to pay for those ads in the local currency, so exchange rates, again, can hurt as much as help.

When talking about a company the size of Canon, there are just too many variables to presume that one thing (like the exchange rate of the Yen) will have a major impact on prices


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Re: If the Japanese Yen is now low, why are Canon prices staying high?
« Reply #32 on: May 19, 2013, 01:55:33 PM »