The Canon EOS R7 Mark II likely isn’t coming in 2026

It'd make sense.
Leica, Panasonic and Sigma have.
Why would the strategy of three niche manufacturers, who combined with Nikon still fall short of half of Canon’s market share, make sense for Canon? About 63% of ILCs sold are crop.

Not launching an R7II this year doesn’t mean that Canon has ‘given up on the crop bodies’. The 7-series has had the slowest refresh cycle since it launched.
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The Canon EOS R7 Mark II likely isn’t coming in 2026

And let said R&D and production depreciate?
Unless there is capitalised cost, then there will be no "depreciation".
Cash flow will be affected by spending the R&D early but the sunk cost is not "lost" unless the body never sees the light of day.

The assumption that volume production of bodies are already in finished goods/shipping warehouse can't be confirmed.
I would doubt that Canon would delay the release by >6 months if they had stock on hand ready to distribute/ sell.
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The Canon EOS R7 Mark II likely isn’t coming in 2026

It is entirely likely that manufacturing capacity constraints have made the product release schedule change.
If sales are up on higher profit bodies then it makes sense to delay.
It could even be a problem sourcing a key component or a yield problem with a custom chip. We will never know.

The R&D/testing hasn't been wasted unless the body needs to change ie more R&D/testing needed. It is just a cash flow/advance cost.
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The Canon EOS R7 Mark II likely isn’t coming in 2026

The R7 was released years ago already and still no direct competitor from Nikon.
My Nikonian friend tells me that she thinks Nikon has basically given up on the crop bodies. Nothing really since the D7500. 7200 really since they went with less pixel density in later models. Birders aren't all that happy, though they're still great cameras.
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The Canon EOS R7 Mark II likely isn’t coming in 2026

And let said R&D and production depreciate?
If their financial models indicate that they can’t make a profit on the product, then ultimately it would be yes - write it off.

I actually think the ‘supply chain crunch’ is a very plausible explanation of the situation. The rumored R7II is basically an R5II with an APS-C sensor rather than a FF sensor. You almost certainly aren’t going to save $1k+ on a camera just by switching to APS-C so the R7II was already going to have narrower margins - price increases in RAM and associated electronics could easily squeeze those margins to the point where it just doesn’t make economic sense to proceed at this time.

If this is the case, then it’s highly likely that they aren’t abandoning the project, but instead putting it on hold for 6 or 8 months to see what happens with the supply chain landscape.
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The Canon EOS R7 Mark II likely isn’t coming in 2026

I kind of think Canon has finished the R&D process for the R7, field tested it (it has been reported on multiple channels) and basically has the camera ready to go. Then all of a sudden, the R7 still keeps selling well plus nobody knows what happens to the worlds economy at moment. Sooooo, let's wait a little bit longer.

And let said R&D and production depreciate?
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The Canon EOS R7 Mark II likely isn’t coming in 2026

Maybe Canon wants to skip minor changes and is thinking about a real leap forward IMO this might be a global shutter or at least a really fast readout of the sensor for video and electronic shutter as a real difference between other offerings.
To make such a sensor in a e.g. 2000 €-body is a large step.

Well, the rumored upgrades were hardly minor. Regardless, it doesn't explain a year plus of rumored specs from "accurate" sources. Canon didn't leak the false specs. That said, I have my doubts Canon will ever make a mirrorless APS body suitable for birding. Too much cost, too few buyers. We wanted to believe the fantasy.
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The Canon EOS R7 Mark II likely isn’t coming in 2026

Looks like Canon just opened the door for the Nikon Z90.

Except the Z90 is every much Rumorware as the R7 II. Nikon Rumors explicitly said no such animal was expected in 2026 and it hasn't mentioned anything about potential specs or news this year.

However, the Fuji X-T6 is real and coming later this year, so there is that. The R7 II news is disappointing but always seemed too good to be true. I'll keep rolling with my R5 II but a solid performing APS body is still on my want list.
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Report: New Canon Super Telephoto Lenses Coming in May

As for why your EF 300mm f/4 L IS with a 1991 design isn't as good with newer MILCs, please see Roger Cicala's old blog entry Autofocus Reality: Part 3B from back in 2012. He explains that Canon upped the game around 2010 as to how accurately the lens reports the focus position to the camera.
I know, I loved to follow his blog for many years. But in real life, the old EF 300mm f/4.0 L IS USM worked quite well even with my 5D4. Interestingly, my old EF 500mm f/4.5 L USM from 1995 worked still surprisingly well with my R7, in contrast to my 300mm, a lens that was introduced in 1997.
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The Canon EOS R6 V and RF 20-50mm f/4L IS USM PZ are Coming May 13

I already gave up my hope that I could upgrade my R7 before I leave for a birding trip in June. Well I'll survive with the R7 and R5II. My R7 is really a strange package: shooting birds in flight against blue and or overcast skies is quite a challenge - the camera's object recognition quite frequently fails in a mind-boggling way. On the other hand, with a vivid background when the old 7D II would have struggled, the R7 can really shine. Here are two fighting skylarks, they were quite far away, this image is heavily cropped. So they were mere quite small spots on the sensor. I just lifted my lens and took a series of shots w/o hope to get any in-focus hit. But then I found a whole series in focus, this is one of the best. Shot with the EF 600mm f/4.0 III, f = 6.3 and 1/1250 s shutter speed. So, the original R7 is always good for a surprise, either a bad or a really great one.1J0A1013.jpg
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The Canon EOS R6 V and RF 20-50mm f/4L IS USM PZ are Coming May 13

I´m struggling with that assumption. As posted in a different thread:
Canon could easily reuse the 24mp sensor for the r8ii and use it for further market segmentation with a 24 - 33 - 45 mp line up. I´d actually expect them to do just that.
Yes, I agree. I actually prefer the file I get out of my R6ii to those I get from my R5. The resolution choice of 24mp was to buff 4K video (yawn) and the bump to 33mp in the mkiii was to assist 8K video (double yawn). So none of these choices were made for photographers needs in mind. It was all about the hybrid / video sales. If the R8II is truly an enthusiasts photographer’s camera, then let’s hope Canon truly hit that specific target.
That said the R8 is still a remarkably capable camera.
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The Canon EOS R7 Mark II likely isn’t coming in 2026

Maybe Canon wants to skip minor changes and is thinking about a real leap forward IMO this might be a global shutter or at least a really fast readout of the sensor for video and electronic shutter as a real difference between other offerings.
To make such a sensor in a e.g. 2000 €-body is a large step.
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