NIKKEI Asian Review – TOKYO — Canon‘s operating profit is on track to sink 40% this year to slightly over 200 billion yen ($1.85 billion), Nikkei has learned, amid a slowing European economy and slumping chip market.
The Japanese company's profit for the year ending in December is seen falling roughly 60 billion yen short of its downgraded guidance in April. Sales likely will shrink 6% to a figure above 3.7 trillion yen, off about 100 billion yen from April's forecast. The full-year projections are expected to be lowered again when Canon presents first-half earnings next week.
Worsening economic conditions in Europe have caused corporate clients to hold off on investments, softening sales of office equipment and other machinery. The depreciation of the euro against the yen also undercut profitability in exports. Read the full story at Nikkei Asian Review
So what do you see as a long term trend for all the companies producing our beloved gear? Will we look back at a golden age and forward to more expensive cameras and lenses?
Jack
Canon stated a few years ago that the decline in DSLR sales came from the lower end models such as Rebels... and I definitely see similar lack of "proper" cameras when I travel as well.
Older people were a big part of the compact market, and even they've become more comfortable using smartphones and iPads (eeek!) for photography.
Yay!
Oops.
But, the big question is: are they carrying around fewer office copiers? From the story:
90D is in the pipeline. 7D series is dead. There will not be a 7D Mark III. New M5 coming this year too. Where you been? ;)
Yes, the reports here are reporting PnL at the corporate level inclusive of all divisions and not just imaging. Moving forwards, I think Canon will provide more meaningful data regarding the actual contraction and impact of the shrinking imaging market. Sony decided to roll up their IP&S (Imaging Products and Solutions) under their EP&S (Electronic Products and Solutions) division in 2018, which now sweeps losses under the rug so to speak.
But, overall, I am seeing the whole gammut. There are a good number of dedicated "hobbyist" photographers (usually identified with annoyed look on their face waiting for people to get out of their shot), a good number of people with better cameras wanting to document their travels (camera strapped around their neck), and then the mob with their phones.
It's anyone's guess as to what happens, but I'm pretty sure everyone will focus on the higher end market and try to leverage the high profitability of full frame cameras, but also seek some other parallel product sales to insulate against the fluctuating camera market. Then again, maybe they end up getting tired of this shrinking market and put talk of their eggs in another basket which is going strong (cell phone cameras, backup camera, medical imaging - I don't see any of those drying up over night), moving out of ILCs entirely. Anyone's guess.
Hey! I resemble that remark!