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Canon has posted their first quarter of 2020 financial results, as expected, COVID-19 has impacted their businesses across the board.
In the first quarter, amid ongoing camera market contraction, we posted a significant drop in revenue. This was due to a shortage of products linked to supply-chain issues that arose in connection with COVID-19.
Going forward, we will make every effort to minimize the sales impact, carrying out flexible parts procurement that takes into consideration the operating status of suppliers and clarifying our priorities as it relates to the production of each model.
In addition to the impact on supply, sales of interchangeable-lens cameras were also greatly affected. One after another, life events were canceled or postponed and chances to use cameras decreased. In addition to this, we believe it will take time to see a recovery in the demand for cameras, which are considered luxury items, even after the global economic turmoil has subsided. As a result, we expect the rate of the market contraction in 2020 to exceed that of 2019.
Despite the difficult business environment, we will steadily push forward our strategy that focuses on models for professionals and advanced-amateurs to maintain medium- to long- term profitability.
In the first quarter of this year, we announced the development of a new full-frame mirrorless camera, the EOS R5. This camera has garnered high acclaim from the market for its advanced features since being announced. In addition to 8K video shooting with an interchangeable- lens camera, the EOS R5 also realizes a further improvement in image stabilization by taking the image stabilization mechanisms typically found in lenses, integrating them into the camera body, and fully coordinating the system from both sides. It is a powerful new product that provides a revolutionary shooting experience for all still images and video users.
On top of this, we will work to enhance our lineup of dedicated full-frame mirrorless camera lenses, bringing the total to 19 with the launch of nine new models this year. We will also launch popular price range products, an area where we were not able to sufficiently cover up-to-now. Through this and the significant expansion of our lens selection, we will expand sales of camera bodies and stimulate demand for full-frame mirrorless cameras.
For compact cameras as well, even amid an accelerated market contraction in 2020 due to the impact of COVID-19, we will work to raise profitability, focusing on selling high margin G series models.
You can see the rest of Canon’s first quarter of 2020 results here