October 26, 2014, 02:05:23 AM

Author Topic: Canon to Leave the Entry Level Point & Shoot Market?  (Read 7009 times)

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Canon to Leave the Entry Level Point & Shoot Market?
« on: February 24, 2014, 03:18:25 PM »

There are couple of reports today saying that Canon plans to leave the sub $200 compact point and shoot market. The segment has been decimated by smartphones over the last 3-5 years and sales are no where near what they were.


The move makes a lot of sense, Canon would be better suited putting development dollars into DSLRs, lenses, advanced compacts and the Cinema EOS lines.


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Canon to Leave the Entry Level Point & Shoot Market?
« on: February 24, 2014, 03:18:25 PM »

takesome1

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #1 on: February 24, 2014, 04:03:30 PM »
Correction.

Canon has already been removed from the sub $200 point and shoot market.
They have already been replaced by smart phones.
Like the house guest at the party that just will not leave, Canon seems to have hung around to long.



dhofmann

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #2 on: February 24, 2014, 04:33:36 PM »
Optical zoom will always outperform digital zoom, and there aren't yet many smartphones with optical zoom (and those that do look like the neighbor kid's toys on Toy Story), so smartphones haven't yet replaced, for example, the $90 Canon PowerShot A2200.
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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #3 on: February 24, 2014, 05:25:27 PM »
That makes good sense. Good move.
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neuroanatomist

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #4 on: February 24, 2014, 05:32:10 PM »
Fixed lens cameras accounted for ~46% of the total revenue from digital cameras last year.  In general, the cheaper models of a given product line outsell the high end models.  Seems like a lot of ¥ to throw away. 
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risc32

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #5 on: February 24, 2014, 05:36:17 PM »
Optical zoom will always outperform digital zoom, and there aren't yet many smartphones with optical zoom (and those that do look like the neighbor kid's toys on Toy Story), so smartphones haven't yet replaced, for example, the $90 Canon PowerShot A2200.

 no, the party's over. they called "last call" a couple years ago canon just hasn't noticed. They should also stop making what they are making with their other nonSLR cameras also. They stink. go big or go home. or what will more than likely happen, the market will send you home. i just hope they leave with a couple bucks in their pocket.

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #6 on: February 24, 2014, 06:09:48 PM »
There are way too many overlapping and unexcing p&s models of all makes to divide a shrinking pie.

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #6 on: February 24, 2014, 06:09:48 PM »

Hesbehindyou

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #7 on: February 24, 2014, 06:41:19 PM »
Canon would be better suited putting development dollars into DSLRs, lenses, advanced compacts and the Cinema EOS lines.

How many development dollars does it take to put the guts of a mid-range model in a slightly larger body with crippled firmware?

That said, with sales falling off a cliff Canon will be losing the economies of scale that made the tight margins in this sector worthwhile.

neuroanatomist

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #8 on: February 24, 2014, 06:55:14 PM »
There are way too many overlapping and unexcing p&s models of all makes to divide a shrinking pie.

I'm not so sure that's true.  Yes, if you look on Amazon or the Canon (or other vendor) website, there's a huge selection.  But, a) at those price points, a difference of $15-30 is a differentiator, and b) P&S sales are at brick-and-mortar outlets are a major fraction.  The plethora of similar models gives distributors a choice - Target and Walmart often sell slightly different models, for example.
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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #9 on: February 24, 2014, 07:02:43 PM »
FF mirrorless body is about same size as P&S. It's time Mr. Canon, before it too late ::)
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cliffwang

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #10 on: February 24, 2014, 07:54:58 PM »
Optical zoom will always outperform digital zoom, and there aren't yet many smartphones with optical zoom (and those that do look like the neighbor kid's toys on Toy Story), so smartphones haven't yet replaced, for example, the $90 Canon PowerShot A2200.

Of course people know the $90 A2200 has better IQ.  Years ago people use P&S camera because of the convenience.  Now they have better choices, smartphones, because it's much more convenient.  If they really care about IQ, they probably use dSLR already.  Nokia phone has 40MP camera, Sony phone has 20MP camera, and now Samsung phone has 16MP camera.  In two years every phone maker will have build-in 20MP+ camera.  I can see most people don't need a P&S camera in few years.  Canon should make FF attachable Lens-style camera like Sony QX10/QX100.  I think that's the future of the P&S.
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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #11 on: February 24, 2014, 08:59:29 PM »
FF mirrorless body is about same size as P&S. It's time Mr. Canon, before it too late ::)

don't see how this changes the equation.  Mirrorless FF will be at least 1k  more expensive than anyone in the entry level P&S category is looking to spend ($200 or so vs $1500-2500)...

Mirrorless doesn't get you to facebook.  Mirrorless doesn't let you watch youtube.  Mirrorless doesn't let you do video chat.  Mirrorless doesn't give you a dataplan!  Mirrorless does not give you angry birds, words with friends or candy crush saga, or any of the other apps like that.... Mirrorless won't get you to porn (unless you film it yourself)...

Those not buying entry level P&S cameras kind of want 1 device.  Cell phone cameras for the most part are pretty much as good in most situations as a p&S - mind you, we're talking about very casual shooters here.  Mirrorless is way more expensive, not as capable (for what that market wants).  Mirrorless, especially FF mirrorless is gonna only appeal to a unique niche mix of pros, hobbyists and enthusiasts or those who travel a lot!

Either way, it makes sense, anything below slr's has to offer something compelling, and entry level P&S's are far from compelling!!!!
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jrista

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #12 on: February 24, 2014, 09:15:35 PM »
Fixed lens cameras accounted for ~46% of the total revenue from digital cameras last year.  In general, the cheaper models of a given product line outsell the high end models.  Seems like a lot of ¥ to throw away.

Based on the actual article (translated from japanese), it doesn't sound like they are exiting immediately. The chart does show some fairly significant declines in the market (by about 40%) since 2010. The article also says they will be halving their market participation every couple of years...so they aren't going to be exiting over night. They will be diminishing their presence in the ultra low end range of that market, and shifting the excess resources to other cameras at the higher end of the range of that market. It doesn't even sound like they are going to be shifting the resources to DSLRs...just more lucrative compact camera models and accessories.

It really doesn't sound like they are throwing away money, it sounds like they are shifting their resources to maximizing the potential of that market where there is still potential to be had.

Also, the article was japanese...who knows if it really has anything to do with the sales of these models in western countries. If they are still making money on them here (I kind of doubt they are making all that much still, especially with the likes of the iPhone and Lumia 1020 on the market), they may still sell them here.

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #12 on: February 24, 2014, 09:15:35 PM »

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #13 on: February 24, 2014, 10:51:37 PM »
Fixed lens cameras accounted for ~46% of the total revenue from digital cameras last year.  In general, the cheaper models of a given product line outsell the high end models.  Seems like a lot of ¥ to throw away.

Based on the actual article (translated from japanese), it doesn't sound like they are exiting immediately. The chart does show some fairly significant declines in the market (by about 40%) since 2010. The article also says they will be halving their market participation every couple of years...so they aren't going to be exiting over night. They will be diminishing their presence in the ultra low end range of that market, and shifting the excess resources to other cameras at the higher end of the range of that market. It doesn't even sound like they are going to be shifting the resources to DSLRs...just more lucrative compact camera models and accessories.

It really doesn't sound like they are throwing away money, it sounds like they are shifting their resources to maximizing the potential of that market where there is still potential to be had.

Also, the article was japanese...who knows if it really has anything to do with the sales of these models in western countries. If they are still making money on them here (I kind of doubt they are making all that much still, especially with the likes of the iPhone and Lumia 1020 on the market), they may still sell them here.

AT LAST...SOMEONE ACTUALLY READ THE ARTICLE!!

This drives me nuts on this forum. People see a headline and start commenting without bothering to go to the original source and read was was actually written.

I read it the same way Jon did. They aren't making some announcement about leaving the market, they are just assessing the current and possible future market situation and suggesting that they will reduce their presence and concentrate on niche models that can be sold at greater profit.

There is really no news here.
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neuroanatomist

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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #14 on: February 24, 2014, 11:02:46 PM »
Also, the article was japanese...who knows if it really has anything to do with the sales of these models in western countries. If they are still making money on them here (I kind of doubt they are making all that much still, especially with the likes of the iPhone and Lumia 1020 on the market), they may still sell them here.

FWIW, the Americas and Europe each accounted for ~30% of fixed-lens cameras in 2013, so 'western countries' are buying the majority of P&S cameras (although the distribution of high end vs. low end could vary by geography).
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Re: Canon to Leave the Entry Level Point & Shoot Market?
« Reply #14 on: February 24, 2014, 11:02:46 PM »