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Canon recently released their annual report for 2024, and there are a few interesting things Canon mentions in the report. One of the biggest takeaways is Canon has moved in automated production lines for cameras and lenses. This likely makes Canon unique among all the manufacturers.
Canon has used automated production for toner cartridges, and it looks like they’re working hard to make manufacturing of their products more efficient and cost effective.
Canon Automates Camera & Lens Production
Canon also claims that the move will improve consistency in the manufacturing of cameras lenses and will make tolerances more consistent
From what we know about camera and lens manufacturing from years of speaking with people, it has been expected that Canon does have the most capable manufacturing ability when compared to the other camera companies, their investment in improving in this area has always been significant.
Canon aims to achieve further production efficiency by leveraging technologies cultivated in different businesses regardless of divisions and by collaboration among design, production engineering, and manufacturing sites, to refine its automation and in-house production technologies.
In addition to key devices and components, we are also actively pursuing in-house production of production equipment and molding dies. Following toner cartridges, we have rolled out automated production lines for cameras and interchangeable lenses to further enhance productivity
Canon CEO – Annual Report 2024
We have always considered that Canon is a manufacturing company first, and the imaging division is just 21% of overall revenue. In 2024, Canon's net imaging division sales for 2024 were ¥937.4B or about $6.5 billion in USD.
Canon's imaging division has always been vertical integration, as they make everything from image sensors, camera processors, chips in lenses and batteries as well as high end optical glass across all the industries they're in.
Canon Camera & Lens Sales Growth
Canon's camera and lens business continues to thrive, and they are clearly #1 in market share across the industry. They still have a goal of increasing both market share and unit sales as the camera & lens industry is slowing growing after bottoming out a few years ago.
Canon does include their growing network camera and security business, which saw solid growth after inventory correction and innovation.
Canon Imaging Summary
As for interchangeable-lens cameras, in August and November of last year, we launched new mirrorless cameras, namely the “EOS R5 Mark II,” a new mainstream model for professionals and enthusiasts, and the “EOS R1,” our flagship model, respectively.
As a result, we maintained mirrorless camera sales growth as unit sales exceeded those of the previous term. The sales of interchangeable lenses also increased due to sales growth in high-value-added cameras, which led to net sales growth in the camera category overall.
The network camera market keeps on growing with a continued focus on the security field. Sales of network cameras were sluggish in the first quarter due to inventory adjustments.
However, after inventory adjustments were completed, we firmly secured growing demand by leveraging our powerful sales channels in Europe and the United States.
As a result, we posted growth in both network camera hardware and software sales, which led to double-digit net sales growth also in this term.
As a result, on a consolidated basis, sales for this business unit increased by 8.8% to 937.4 billion yen in comparison to the previous term.
Canon Annual Report for 2024
Canon reports that they're ahead of schedule with their restructuring across the entire business. The move to automated production of cameras and lenses should lead to better margins and a better ability to meet inventory demands as long as the supply chain remains in good shape, though it can probably still be better.
In the end a corporation wants to make money and these advances will likely improve the balance sheet over the next few years.
You can check out the full 2024 Annual Report from Canon here.
Yes, AI, Internet banking, automated production processes... There's no way back.
And, according to one main actor in car technology (Bosch), 5 employees are needed for diesel tech., 3 for petrol/gasoline, only one for E. car tech.
Again here, no way back. Services will never be able to compensate the loss of manual activity. E-cars are coming, the future is theirs.
Denying changes, including climatic ones, is both stupid and suicidal. But changes are coming at a high price for many of us.
PS: Fortunately, I'm no longer young...😉
"... 'tis our fast intend
to shake all cares and business from our age,
conferring them to younger strenghts,
while we unburthen'd crawl toward death."
(King Lear)
Yet, what the Bosch manager wanted to say is that, for Diesel technology, you needed far more parts, like the extremely complex injection pump, EGR valves, turbos etc...The precision machining process, plus casting, cold/hot extrusion, forging, testing, hardening needs people, and not too few.
Even gasoline engines require a high amount of complex elements, like high pressure injectors, particulate filters, turbos etc...
While mostly "simple" motor parts are needed for E vehicles, plus electronics. These items can easily be made in an automated process, not so easy for injection components.
So, it's not about them not wanting to invest more into better E Tech. but a simple fact that conventional technology requires more workforce in the entire production process.
I do not deny, on the other hand, that they could do more for E-Tech...
- Chinese competition (not yet dramatic)
- E-cars: Loss of many forgings (crankshafts, con-rods, camshafts, transmission gears etc...) Including machining of these parts.
- E-cars: Loss of many castnigs (engine block, cylinder head, timing-case, transmission housing etc...) Including machining of these parts.
(Even harder for suppliers making turbos, injection, radiators, exhausts, bearings, seals and gaskets)
- Conventional cars: Rationalisation of body construction and assembly
So, during the last 10 years, approximately 20% of the staff were sent into early retirement or those retiring were not replaced.
Where I see a great danger: Look at what happened with computers. 20 years ago, one bought a brand (IBM, Nixdorf...) No longer, except Apple. The same could happen with E-cars, brand prestige (cuore sportivo etc...) could lose its value for newer customers. It's already happening in the lower-cost category.
And still, there's a lack of highly skilled employees in the field of electronics, AI, materials, batteries...
Hard times ahead for less skilled ones...
See: https://www.imaging-resource.com/ne...ut-ai-based-action-priority-af-lenses-and-a-w
I recall at least one regular poster here had theorized this.🙂
Sigh, I always liked the imagination ofJapanese ladies who precisely assembled the tiny electronic, mechanical and optical components with their delicate fingers of my Canon, Mamiya or Nikon gear. Looks like this will be soon history, like once German women who were the backbone of Germany's famous camera industry that is mostly history now. On the other hand, automation will help Canon to keep prices on level that may be more affordable for enthusiasts and pro's, and achieving a much more stable output quality.
I'd love to have an intelligent AF system that understands the behavior of birds better, in particular flying birds 😉
The editor seems to imply that more FF cameras than APS-C cameras are being sold, but I really doubt that's the case. Certainly the fact that more than 50% of lenses shipped in 2024 were for crop sensors does not support the idea of FF > APS-C. My estimate is that it's currently about 3:1 (APS-C:FF), which is consistent with Canon's statement that the ratio is 'more tilted toward full-frame' than 5:1.
As the Canon rep stated, the main driver for the shift is that Canon pushed down the cost of FF cameras, with the RP remaining in the lineup and available new for <$1K.
So we can expect to start seeing MkII versions of RF lenses soon, or better yet (from my perspective) improved ‘replacements’ like a 24-70/2.