July 9 (Reuters) – Japan’s Canon Inc is likely to post a near three-fold jump in its group operating profit for the January-June period, boosted by better-than-expected sales of digital single-lens reflex cameras and laser printers, the Nikkei business daily reported.
The digital camera and office equipment maker’s group operating profit for the first half is expected to be up 180 percent at about 182 billion yen ($2.07 billion), the daily said.
Full-year sales are seen up 15 percent at around 1.7 trillion yen, helped by brisk demand for entry-level digital SLR cameras and strong sales in China, the daily said.
Renewed spending on information technology by clients helped the office equipment division, which struggled a year earlier, it said.
Canon’s gross profit margin likely returned to levels from before the financial crisis, the daily said.
For the full year ending in December, sales are forecast to rise 17 percent to about 3.75 trillion yen, with operating profit predicted to surge 66 percent to about 360 billion yen, the daily said.
Canon, which uses U.S. accounting standards, aims to absorb the blow of a weak euro through cost cuts and increased sales of highly profitable products, such as digital cameras, Nikkei said.
There are signs of a recovery in photolithography devices amid strong demand from LCD panel makers in China, the daily said. ($1=87.75 Yen) (Reporting by Shailesh Kuber in Bangalore; Editing by Gopakumar Warrier)
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Does anybody else think this has to with the popularity of EOS dSLRs for filming/video?
So, this means TS-E 8-1200/1.0-1.4 DO H-IS USM goin to be released this year?
What? No Macro? What a junk ;)
No doubt that jump in sales is coming from DSLR’s like the 5D MK2. Please Canon bring The 5D MK3, without stupid limitations, and your profit will jump to heaven.
I’m glad to hear Canon is doing well… I just wonder if they’re going to spend more money on kick ass lenses and bodies or go crazy developing their own mirrorless format a la the Sony NEX and Micro 4/3 systems. And maybe the new 24-70 won’t cost 50% more than the old one like the 70-200 did.
No one mentions that canon lost 8% market share at Japan compared to 2009? Now Nikon has 34% and Canon has 31%
http://nikonrumors.com/wp-content/uploads/2010/07/nikon-ranking-2010.png
I’m not a Nikon fanboy, i have Canon gear, but guys, these sales speak for themselves. Canon has to bring out a killer body, if you watch the World Cup, you can see that every second (if not more) machine is a Nikon.
It would be nice if this would mean fewer comments from people insisting that if Canon doesn’t introduce “XXX” they are fools that are going to lose everyone’s business.
This shows Canon is a well run company that understands their market far better than we think they do.
I’ve got my wish list, just like everyone else. Sometimes we just have to accept that what we are absolutely convinced would be a great seller and a must-have product, doesn’t necessarily work when a for-profit company has to put pencil to paper.
On the other hand, maybe we all ought to take a minute or two to appreciate the mass of consumers who buy most of Canon’s products. It’s all those Rebel and Powershot owners out there that make it possible for Canon to develop the fancy glass and cool camera bodies that the rest of us enjoy.
Now: WHERE’S THE NEW 100-400 IS ZOOM? :)
such a lense would be fun to build. like a ton and a few millon $ expensive ;)
Unlike the rest of the world, Japanese are very trendy and they try new things. A small fluctuation today doesn’t mean anything tomorrow. And what’s 34 vs. 31? Quite an insignificant difference, IMO.
You should also factor in customer satisfaction too. And if we factor in customer “awareness”, I guess only a couple of hundred people will actually truly know their cameras… in the whole world! (Well, maybe a few thousands at most…)
:)
Yes, I saw that.
BUT NikonRumors also failed to highlight the POOR sales of the 12 MP D700 (not even listed) vs 21 MP 5D2 (ranked 13, 1.8% market share ) and 12 MP D300s (ranked 19, 1.3% market share) vs 18 MP 7D (ranked 9, 3.5% market share).
The combined sales of the D3X, D3s, D700 is less than 1.2% while the 5D2 alone commands 1.8% of market share.
While Nikon has a bigger market share for the first half of 2010, their profit margins are probably much lower ‘cos their sales come mostly from lower end DSLRs. In contrast, Canon is earning a lot from sales of their advanced DSLR models.
But I agree it’s strange that Canon’s 550D is not taking the Japanese market by storm in the first half of 2010. Maybe this has something to do with multiple rebates for the older Nikon DSLR models?
Heh – U.S. accounting “standards” – that could explain a lot about the high profits!
Come on Canon – give us some more reasons to exchange our fiat currencies for hard goods ;)
No.
Canon sells more than just cameras.
It would be nice if this would mean fewer comments from people insisting that if Canon doesn’t introduce “XXX” they are fools that are going to lose everyone’s business.
Canon runs a porn industry?
What’s 34 vs 31? Almost 10%, so far from “quite insignifcant” it’s bordering on significant. Also quite a turnaround compared to 2009, I think you’ll agree.
Profits were very low last year, so 3X is still not a huge number, but its going the right direction.
Hopefully, Nikon will pull out of their very poor financial condition and be able to afford some new products.
no… but apparently a lot of people think they should! lol
We predicted this to happen. But these values could have been doubled if Canon had released the latest firmware that we have been pushing. Despite the fact that the 5D Mark II is nearing its replacement, we will still continue to push for more firmware improvements. Thank you for all those who have contributed to our success.
We
“Unlike the rest of the world, Japanese are very trendy and they try new things. A small fluctuation today doesn’t mean anything tomorrow”
I agree with this part, bot not with the other, 34v31 is not much, but the 8% loss IS really significant.
I’m sexually biased so Japanese geishas aren’t eye candy for me – only Caucasian chicks.
“but the 8% loss IS really significant.”
One word: non-linear… or is that two? :D
I guess all of my cameras and L lens purchases really added up!
Wait, isn’t this the real one?
We predicted on our blog their posts would eventually begin to sound just like we fakers. We thank ourselves for all of we who have contributed to our collective success.
We
Hm, how about passing on just a smidgen of those profits towards lowering the prices of something, cough mark 2, cough, so I may be able to buy one someday.
I don’t know, just a thought.
@Sun of Daguerrotype: We are mortal enemies then…..everybody knows CanON girls are teh hawtest!
LOL – US accounting standards. Yea, that explains the “profit”.
the profit gain might also have to do with the multiple factories and facilities Canon has closed – with large amount of people being fired.
C’mon guys – big companies today do not grow by putting video on SLR (which prob. makes 3% of their total portfolio) or throwing few more lenses on the market, but they rather grow by aquiring other companies and cutting cost to the maximum extent. (not saying this is wrong, this is how the system works)
Certainly, somewhere hidden in these billions of $$$ is definitely the overconfident pricing of Canon’s latest offerings.
Just consider the price hike for the 70-200 2.8 IS II or the new TS-Es.
Oh my, is that a big… white… 300mm long, 128 mm wide tele lens or are you just happy to see me?
Great opening line huh?
Now there are no excuses. Perhaps there have been internal pressures from the video division against a very good DSLR-video. Now you, the DSLR section, have won.
Give us what we want. A 5D Mark III with less rolling shutter and with video-RAW or 4:4:4 direct to the memory card.
Then your profits will skyrocket again.
From the release above: “boosted by better-than-expected sales of digital single-lens reflex cameras”
I think quite a lot comes from the fact that the 1D Mark IV used by professionals has a smaller sensor made in one pass compared to FF which requires two passes (contrary to the myth that Canon makes FFs in one pass).
What a nice coincidence – users want more density and Canon wants to maintain a high margin for their 1 series (the price is as of the FF counterpart).
Or continuing research into develop really cool high/mid end camera’s that make people say “yeah my friend has a Canon and takes great pictures, i’d better buy one of those millions of low end canons.
Well done to Canon, let them continue to be a strong contender with great products for me to be ever happy with! Let them not buckle down and struggle to innovate and compete.
One year ago, it would have been nearly all black along the lines.
hope they do something usefull with the money like building new lenses or eliminate the newest tse-24 fail with the center unsharpness (working in a photolab had already 2 customers with the problem one of them gets a new lens from canon)
where did you get this info ?
quote
POOR sales of the 12 MP D700 (not even listed) vs 21 MP 5D2 (ranked 13, 1.8% market share ) and 12 MP D300s (ranked 19, 1.3% market share) vs 18 MP 7D (ranked 9, 3.5% market share).
Again, who cares about the Japanese market. How much do they contribute to the total world market? I doubt it’s bigger than China or US sales. Only the total global sales matter. And there, Canon has never lost the #1 ranking for decades.
what about an “L”?
From here:
http://bcnranking.jp/news/1007/100708_17586.html
That is indeed true.
However, in the past few years, there has always been a strong correlation between market shares for Nikon and Canon in the Japanese market vs worldwide market.
Imagine how massive their profits will be when the EF-S 15-70mm f/4 IS USM is released.
So two samples constitute a “fail” for you? Hats off to you then.
Excellently trolled sir. Chapeaus off to you.
Another info that Nikonrumors did not mention:
Market shares within Japan (from BCNRanking):
2009: Canon 39.1%, Nikon 31.3%
2008: Canon 40.1%, Nikon 39.9%
2007: Nikon 43.8%, Canon 40.0%
So, from 2008 to 2009, Nikon lost 8.6% of market shares.
Too bad for you then, Caucasian chicks don’t take a bath often and don’t shave.
who said? oh.. the daily said… you don´t have to put that on the end of every sentence, otherwise… nice to know that Canon is up and runing in pre-depresion numbers :)
By “Caucasian” I meant “white”.
The means only one thing. Canon has been over charging us for all it products!!!
No, Canon would not exist if there were never profits. A prior point says that low profits last year were easy to tripple. if on a $100 of turnover i made $1 of profit it would not be sustainable, so even if i now made $3 its still not worth running the business – we need more infor to say that they are over charging!
Don’t forget the constant aperture.
About 20% of Canon’s sales are in Japan.
Hey, not all Cacasians are French or German.
Ooooh, you turn me on when you talk that way
Dumb comment.
Note sure, I watched nealry all the games and thought Nikons were in the minority..
Great, they’re rich.
Where’s my 5D mk3 and 24-70mm f/2.8 L with IS? I’m trying to give you azzholes some money here!!!
put the rice bowl down and get to work!
my nutz, your face. thank you, good night.
During some of the more boring games (which doesn’t really narrow it down) I found myself staring at the lenses. I’d guess maybe 60:40 in favour of Canon. Sometimes it looked more like 80:20 and at others 40:60. Still, it relives the boredom of these 0:0 matches and stops me swearing at the referees who have little better than 20:80 vision.
It’s daguerreotype.
they release a new version of a lens and the price is 25% higher than what it replaces! pfffft.
Canon’s Profits Triple….. yeah like thats impressive with the prices doubling and the profit in gear being much higher then prev. years.
old canon 100 mm macro was 420 euro the new one is 1200 good job canon grats on your profits but im buying tamron sigma and tokina lenses now and i didnt get a tripple salary…
Where’s my new 50 f1.4 ?
How about reverting the price of your lenses to what they were in 2007 and 2008?
I am sure that it will boost your sales even more. It might give less profit per lens, but much larger sales.
actually it would be nice if you’d be quiet so we can get what we want! and no more strung along bits and pieces
> July 9 (Reuters) – BLAH!, the Nikkei business daily reported.
> BLAH!, the daily said.
> BLAH!, the daily said.
> BLAH!, it said.
> BLAH!, the daily said.
> BLAH!, the daily said.
> BLAH!, Nikkei said.
> BLAH!, the daily said. ($1=87.75 Yen) (Reporting by Shailesh Kuber in Bangalore; Editing by Gopakumar Warrier)
You guys need to work on being less repetitive and boring if you’re ever gonna score a Pulitzer!
This is by far being conspiracy theory, it is just a simple calculation, based on what can be seen in the competition (Nikon is not really selling D3s with loss) and look what is the 5dmk2, FF, camera price.
It all coincides with profit figures, while low end cameras make the numbers in tables, their profit margin is almost non-existent compared to 1-series cameras.
yes, you are a real Nikon fanboy, talking about canon’s profits triple not about market share, More Nikon in the world cup, r u blind? what u mean killer body? 500d/550d/7d/5dII is selling much more than d5000/d300s/d700. even for real pro sport segment 1DMK IV is selling as good as d3s. canon can sell more cameras around the globe and make more profits than Nikon , so a killer body is not needed.
I’m not a canon fanboy?? but I am
if canon accepts an exchange that constitues a fail
Canon – give us a freaking 16 MP, full-frame, 6-8 fps 3D and profits will go through the roof.
Oh and a 35 1.4L II and 14-24 2.8L please :)
ive been in japan for a year and observed that most amateur/hobbyist are using nikons. and foreigners are using canon. just my observation while walking around. but japanese always upgrade their cameras everytime a new model has been launched
The 35 is fine. Fix the 50 1.4 first.
Let’s see the figures backing up your assertions.
Idiots
Hey, don’t mess with the dream.
I have spent about £3k on various Canon bits and bobs over the last year. They’ve made quite a bit of profit from me!
NICE ONE. HAHAHA