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Canon Inc. has released Q2 2023 financials along with first half of 2023 performance. It looks like things are going well for Canon as they have seen double digit sales growth for cameras and lenses.
There aren't really any juicy tidbits of information in the presentation material, but here is a breakdown of Canon's thoughts on the camera part of their business.
As for cameras, we expect the market to grow slightly to 5.85 million units in 2023,
as user demand is stimulated by new mirrorless cameras launched by each company.
Since last year, we have launched 6 mirrorless cameras, from entry class to advanced
amateur models, in an effort to strengthen our EOS R series lineup. In the second
quarter, sales of these new products were strong, and sales of RF lenses along with
camera units increased, resulting in double-digital sales growth.
For the full year as well, we will aim for double-digit sales growth and unit sales of
2.9 million units, which exceeds that of last year. In order to broaden the scope of
camera users, following the EOS R50 in March, our first entry-class model of our
EOS R series, we released the EOS R100 in June. This product is the smallest and
lightest in the series, and it is a model that users can easily enjoy full-fledged image
capturing, which will encourage people to step up from smartphones.
In June, we launched the PowerShot V10, a camera specifically designed for
vlogging to capture growing demand. We will continue to offer new cameras while
differentiating ourselves from smartphones, featuring 4K 30 frames per second longduration video capturing and natural selfies at close range with a wide-angle lens.
https://global.canon/en/ir/index.html
Canon financial information
Jokes aside. I get a little bit afraid, that the competition continues not to gain some ground.
I prefer competition to monopolism.
Maybe I'll have to jump ship 🤣
Sony is number one.
No discussion allowed!
lightest in the series, and it is a model that users can easily enjoy full-fledged image
capturing, which will encourage people to step up from smartphones\"
How do you encourage smartphone users to buy this camera when you remove the touchscreen?
After 15% discount, AUD150 Canon Australia cash back rebate and getting 10% GST back via TRS, the end cost is ~USD800 (apples to apples) with a 5 year warranty. Second hand prices are running at almost this cost so it was a no-brainer.
All the Canon bodies prices were all significantly reduced recently which is unusual as it doesn't correspond to normal annual marketing discounts cycles.
Maybe they were clearing out local stock but the RP was a bargain. I can't imagine that Canon was losing money on local sales. Exchange rates are about the same as 1 year ago (albeit with some volatility during the last year) so that doesn't account for it.
Double digit growth is massive in almost static market (+1% YoY) so the big question is which competitor(s) is dropping market share but ultimately it is about profit per model. I can only imagine that sales revenue and profitability will increase if Canon can remove their supply chain issues
The JPY has depreciated ~15% against the EUR but the Canon Europe pricing still remains high so there should be great profitability in that region
Imaging inventory value levels are up ~35% and increase of 20% in days of inventory for 1H YoY. That shows just how much supply chain issues for some items are impacting sales.
Imaging sales is up 15% and operating profit by 57% 2Q22 to 2Q23
Full year projection is higher than previously forecast with sales up by 14% and operating profit by 20%!!
They don't split out operating profit by camera vs industrial but sales is up 12% both for 1H and full YoY projection
The lithography equipment is also interesting with 195 units forecast for the full year => average value USD8.3m each.
Compare that to ASML with 50% gross profit and full year sales growth of 30% including higher demand from China even though export regulations restrict Chinese sales to older technology. Unit sales of ~500 in 2022. Highest price for latest gen tech is USD200m/machine but this could be list price that no one buys at.