Canon’s profit likely to slide 40% on European slowdown

Canon Rumors Guy

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Jul 20, 2010
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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...


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neuroanatomist

I post too Much on Here!!
Jul 21, 2010
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For context, Sony is forecasting a 45% drop in net income for FY19, and Nikon is predicting only a 25% drop for FY20 (their respective FYs are different, but in all cases these are forecasts for the next FY).
 

neuroanatomist

I post too Much on Here!!
Jul 21, 2010
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Might be small, but I believe a percentage is also attributable to photographers hesitating to commit to mirrorless while being reluctant to spend more on dSLR. Applies to all the major brands. A transitional phase, surely.
Very small, given that we’re discussing PnL at the corporate level, and their respective imaging businesses (Nikon notwithstanding) are one relatively small line item among many.
 

Jack Douglas

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Apr 10, 2013
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Very small, given that we’re discussing PnL at the corporate level, and their respective imaging businesses (Nikon notwithstanding) are one relatively small line item among many.
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
 

Viggo

EOS 5D SR
Dec 13, 2010
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There’s A LOT of tourist here now, and barley anyone has a “proper” camera. I see only cellphones. Couple of years ago, and no more than that, all I saw was dslr’s and compact’s. Most of the tourist had both plus camcorder.
 

Canon Rumors Guy

EOS 1D MK II
Jul 20, 2010
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There’s A LOT of tourist here now, and barley anyone has a “proper” camera. I see only cellphones. Couple of years ago, and no more than that, all I saw was dslr’s and compact’s. Most of the tourist had both plus camcorder.
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.
 
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unfocused

EOS 5D SR
There’s A LOT of tourist here now, and barley anyone has a “proper” camera. I see only cellphones. Couple of years ago, and no more than that, all I saw was dslr’s and compact’s. Most of the tourist had both plus camcorder.
But, the big question is: are they carrying around fewer office copiers? From the story:

Worsening economic conditions in Europe have caused corporate clients to hold off on investments, softening sales of office equipment and other machinery.
 

CanonFanBoy

EOS 5D MK IV
Jan 28, 2015
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Where are the updates for 80D, 7D, M6, M5? Every middle-range camera is outdated by a few years now.
90D is in the pipeline. 7D series is dead. There will not be a 7D Mark III.
Where are the updates for 80D, 7D, M6, M5? Every middle-range camera is outdated by a few years now.
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? ;)
 

jayphotoworks

EOS 80D
Aug 11, 2016
182
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Very small, given that we’re discussing PnL at the corporate level, and their respective imaging businesses (Nikon notwithstanding) are one relatively small line item among many.
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.
 

docsmith

EOS 6D MK II
Sep 17, 2010
848
199
There’s A LOT of tourist here now, and barley anyone has a “proper” camera. I see only cellphones. Couple of years ago, and no more than that, all I saw was dslr’s and compact’s. Most of the tourist had both plus camcorder.
I travel a lot for both work and fun. I have seen a wide range including being shocked that I am the only person with the ILC at epic photo destinations to shocked how everyone has a DSLR at more casual places. Recent trip to Italy (Amalfi, Capri, Naples) I was very surprised as I would say most people taking pictures had a ILC. But I have also seen it the other way, Alaska, Sedona/Grand Canyon, Arizona, etc, most if not all but me had phones. Iceland was even a bit of a surprise, for every dedicated photographer with tripods galore (of which there were many), I would say there were 2-3 people with phones. I even had someone walk up to me at Kirkjufellfoss and ask me why this waterfall is so famous. I tried to explain how it perfectly aligns with Kirkjufell in the background, received a blank stare and then muttered something about "Game of Thrones" at which point they snapped a picture with their phone and walked back to their tour bus.

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.
 

amorse

EOS 7D MK II
Jan 26, 2017
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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
I'm betting on a move to more advanced cameras being the norm in the short term - high end cameras seem to still be selling for now as computational cell phone photography hasn't yet caught up to all the benefits of full size cameras. Without the bottom end of the market supporting the top end I would bet the prices go up, or the rapid pace of innovation goes down. I'm not sure the market will bare much higher prices for camera bodies, though I also think Canon will try to find a new niche at the bottom of the market. Sony has that with camera modules for cell phones, while Canon has gone for medical imaging (which I'm betting has fewer but more expensive sales than cell phones). I think there was also a report of Canon trying to make back up cameras for vehicles, so that could fill in the market space at the low end of the spectrum too I would think.

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.
 
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amorse

EOS 7D MK II
Jan 26, 2017
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There’s A LOT of tourist here now, and barley anyone has a “proper” camera. I see only cellphones. Couple of years ago, and no more than that, all I saw was dslr’s and compact’s. Most of the tourist had both plus camcorder.
There's definitely a lot of tourists around with cell phone cameras, but I just left Banff and Jasper, and I saw loads of ILCs. I think there's still a population of people out there who want to upgrade their camera for their big trip, and I think a lot of people have aspirations of getting that amazing image that they'll cherish forever, not just a memory of their trip. I think cell phone cameras own the casual market, but ILCs are still perceived as being Superior for "special" photos.