Canon Financials for Q3 2018. Sales down, outlook good.

Canon Rumors Guy

EOS 1D MK II
Jul 20, 2010
7,451
251
Canada
www.canonrumors.com
Last week Canon released their financials for Q3 of 2018, and it wasn’t the best of quarters for the company. Canon claims that sales were lower than expected as consumers were waiting for Canon’s full frame mirrorless announcement before purchasing other cameras and lenses.
Additionally, the successive announcements made by manufacturers, including Canon, of entering the full-frame mirrorless camera market has led to temporary restrained buying of advanced-amateur models. Compared to the same period last year, during which we launched two new models, our sales declined by 22.4% in the third quarter.
There are some positives, as the Canon EOS M50 continues to be a great seller for Canon and the EOS M lineup.

…… By introducing new products such as the EOS M50, which also realizes user-friendly operation, even for people that are just getting into photography, we continue to post solid results, successfully capturing first-time users of interchangeable-lens cameras.
…… In light of...
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KirkD

EOS M50
Nov 23, 2017
48
11
Canada
kirkdurston.wixsite.com
"our sales declined by 22.4% in the third quarter." Precisely as I predicted several months ago due to Sony's lead in mirrorless cameras. I believe, however, that will change significantly over the next two quarters as Canon releases or announces more cameras and lenses in the R series. I've already got an EOS R (to replace my 6D), and plan to get the pro-level R when it becomes available. And if the R series lenses continue to be as impressive as the first few, I can see Canon's market share significantly improving over the next two years. I almost bailed to Sony, but now I'm very glad I waited.
 

ritholtz

EOS 7D MK II
Mar 25, 2014
572
7
Need M50 with big discount printer MIR. Unfortunately they are clearing out M5 and M6. No big discount on M50.
 

Go Wild

EOS 80D
Dec 8, 2014
102
43
"our sales declined by 22.4% in the third quarter." Precisely as I predicted several months ago due to Sony's lead in mirrorless cameras. I believe, however, that will change significantly over the next two quarters as Canon releases or announces more cameras and lenses in the R series. I've already got an EOS R (to replace my 6D), and plan to get the pro-level R when it becomes available. And if the R series lenses continue to be as impressive as the first few, I can see Canon's market share significantly improving over the next two years. I almost bailed to Sony, but now I'm very glad I waited.
Yep! I bought the Sony A7r3 to work together with my 1dxmkII. If Canon makes a good pro R body i will switch again and sell the Sony body. Really angry that Canon took so long to look at the market...Well..but the R series looks promising and reaally liked the new RF sistem and the adapters! So please Canon DO NOT make more mistakes and give me one R body that makes Sony blush wiht shame!! :D :D
 

Adelino

EOS RP
Jan 21, 2015
264
103
22% drop is sales is pretty huge. This is positive for consumers, it portends a drop in price for the holiday season and Canon will think twice about market segmentation, now is not the time to worry about product cannibalization but of regaining technical superiority especially in regards to features and pricing.
 

gmon750

EOS T7i
Jan 30, 2015
68
28
"our sales declined by 22.4% in the third quarter." Precisely as I predicted several months ago due to Sony's lead in mirrorless cameras. I believe, however, that will change significantly over the next two quarters as Canon releases or announces more cameras and lenses in the R series. I've already got an EOS R (to replace my 6D), and plan to get the pro-level R when it becomes available. And if the R series lenses continue to be as impressive as the first few, I can see Canon's market share significantly improving over the next two years. I almost bailed to Sony, but now I'm very glad I waited.
Canon’s drop is due to people waiting to see what they do in the mirrorless front. Has nothing to do with Sony. Heck, I was ready to buy a 5DM4 to add to my 5DM3 but held off. I’m sure many were in similar positions.

Now, I’m just going to wait to see what Canon does with a “pro” version. Their R lenses are incredible, and puts Sony’s lenses to shame.

My bet is a pro body is right around the corner and coupled with their awesom lenses, it will leave the competition in the dust. It’s worth waiting for me.
 

docsmith

EOS 6D MK II
Sep 17, 2010
835
182
So, Canon is telling its investors that Nikon and Canon essentially froze the market as people waited for the new product.

While that likely has merit, I would also argue it was about relatively new products. I am seeing 4 camera body announcements before Q3 2017 (77D, T7i, SL2, and 6DII). 2018, I am seeing T7, 400D, and M50 before the EOS-R was announced. Not only fewer cameras, but lower price point cameras.

That'll get you a 22% drop as well. Had they released a 7DIII, 5Ds II, etc.....probably wouldn't have seen the same drop.
 

mirage

EOS RP
Jul 31, 2018
297
111
hehehe, people like us here holding off buying anything - mainly due to lack of clear communication by Canon. A clear, published roadmap for EOS R - bodies and RF lenses - would definitely be in Canon's own best interest.

Plus total slack at the Rebel and xxD mirrorslapper end. Even n00bs understand that M50 gives them better functionality in a more compact package for only 500 bucks. LoL.

And 7D II long in the tooth, not competitive with Nikon D500.

Not surprised to see -22%. I like it. Might sound an alarm loud enough to be even heard in their octagenarian board room. :)
 

aceflibble

EOS RP
May 8, 2015
296
61
This drop is nothing to read into. It was predicted well ahead of time and is exactly in line with what analysts thought would happen to the industry. Sales would drop as people waited to see what Canon and Nikon would deliver, and it would be/will be a while before they pick back up again as people 1) save up to buy whole new systems and/or 2) wait to see what other companies do in response.

People wanted to see what the R would be and are still mostly waiting to try demo units for themselves, and wait on the lens line to be more fleshed out.
People wanted to see what the Z would be and are still mostly waiting to try demo units for themselves, and wait on the lens line to be more fleshed out.
People wanted to see what the X-T3 would be and are still mostly waiting to try demo units for themselves.
People wanted to see just whateverthehell it was Panasonic, Leica, and Zeiss were going to do.
People are still waiting to see what Pentax's plan for the next few years is.
There are the very real possibilities of the 90D, 7DmkIII, α7sIII, X-H2, and even α7RIV all coming within the next 12 months.
There's already strong word there will be more R bodies being announced within the next 6 months and more Z bodies in the next 12 months.
Not everyone has the money to rush out and buy these things instantly, and of course many people wait for new releases to then buy the previous version second hand, which aren't sales that show up in manufacturers' reports.

So going down 22% is nothing.
 
Reactions: pj1974

JonSnow

EOS 80D
Sep 10, 2018
146
87
waiting waiting waiting..... canon is still not there with the EOS R for my needs.
so i wait another 6 month for the pro model.

that model will probably fix the video issues..... and (with my luck with canon) be a fast 24 MP camera. :(

while i am waiting for a mirrorless camera from canon that has features of the D850 combined with a pro mirrorless.

high megapixel (40+), silent shutter, good eye focusing (aka better than in the EOS R) , great AF with good tracking, decent speed 8-10 fps, better DR, no stupid multibar but a joystick...

and while i wait for this camera i will not even buy new lenses.
because i don´t want to buy more EF lenses when i may switch completely to the RF mount.

i just sold my old 100-400mm and would buy the new model... if there was no new mount.
but so i delay any purchases.
 
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tomri

I'm New Here
Jun 4, 2014
17
0
> as consumers were waiting for Canon’s full frame mirrorless announcement before purchasing other cameras and lenses.
Unfortunately I will have to wait a bit longer as prices are too high and it is not clear where the market is headed. I do believe that the 1700,- for the R body as originally rumored here was actually a more realistic price.
 

Mt Spokane Photography

I post too Much on Here!!
Mar 25, 2011
15,235
527
Sales are down for Canon slightly and they have lowered overall projections. They have a ~50% markup over sales before overhead costs. Those costs seem too high, but they still have a predicted 6.3% bottom line.

Inventory tells the story pretty well. Canon has curtailed shipments of cameras due to slow sales and high inventory. Its likely that production has shifted to the new Mirrorless models that will be announced, as well as tooling up for more RF lenses.

If inventory does not drop, we will see some good prices before December 31 (End of Fiscal Year). Canon wants profits to grow this year, and they can put that excess inventory into the bottom line by having sales. They do this every year, but with high inventory, look for bigger price cuts.


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The Fat Fish

VFX Artist
Jul 29, 2017
85
52
26
Exeter, UK
The issue is the EOS R is the least competitive camera released this year. The continued crippling of video isn't filling that group of users with faith in the future of the company.

As a new product lineup the camera should have been impressive as the lenses. Sadly, it wasn't even close.
 
Reactions: mirage

Mt Spokane Photography

I post too Much on Here!!
Mar 25, 2011
15,235
527
The issue is the EOS R is the least competitive camera released this year. The continued crippling of video isn't filling that group of users with faith in the future of the company.

As a new product lineup the camera should have been impressive as the lenses. Sadly, it wasn't even close.
Its a stills camera with video, not a video camera. Thats been Canon's philosophy, primarily due to demand from photographers.

If a person is looking for cinema quality video, they are not going to find it in a $2200 stills camera from Canon.

Sony is the Industry leader in Video, and does put more into their cameras. Video has always been a strong point for them, Canon is moving up in the video world, but thru a separate line of cameras.

I haven't bothered to try the Video in my R, I bought it as a stills camera that does video in the rare event that I want some.

While I know that some want Canon to change their philosophy, they are not likely to change what works for them. They continue to gain market share, every year, so they feel they are doing it right.
 
Reactions: MartinF.

ethanz

1DX II
Apr 12, 2016
951
205
ethanzentz.com
Sales are down for Canon slightly and they have lowered overall projections. They have a ~50% markup over sales before overhead costs. Those costs seem too high, but they still have a predicted 6.3% bottom line.

Inventory tells the story pretty well. Canon has curtailed shipments of cameras due to slow sales and high inventory. Its likely that production has shifted to the new Mirrorless models that will be announced, as well as tooling up for more RF lenses.

If inventory does not drop, we will see some good prices before December 31 (End of Fiscal Year). Canon wants profits to grow this year, and they can put that excess inventory into the bottom line by having sales. They do this every year, but with high inventory, look for bigger price cuts.
Thanks for the graphics Spokane. I think you are correct.
Some of the phrases they use lead me to believe they will be aggressive.
 
Reactions: pj1974
Aug 10, 2018
7
0
"our sales declined by 22.4% in the third quarter." Precisely as I predicted several months ago due to Sony's lead in mirrorless cameras. I believe, however, that will change significantly over the next two quarters as Canon releases or announces more cameras and lenses in the R series. I've already got an EOS R (to replace my 6D), and plan to get the pro-level R when it becomes available. And if the R series lenses continue to be as impressive as the first few, I can see Canon's market share significantly improving over the next two years. I almost bailed to Sony, but now I'm very glad I waited.
Roy Hunte - You should bail to Sony check out the latest Google trends
https://trends.google.com/trends/explore?geo=US&q=sony a7iii,nikon z6,canon eos r The EOS R is already being forgotten.
 

mirage

EOS RP
Jul 31, 2018
297
111
"a pause in entry-class DSLR purchasing". LOL! Bye bye Rebels, xxD, EF-S! Crop mirrorslapper sales are hitting rock bottom. NOT because of EOS R launch or waiting for it (largely different target groups). It is because of the first decent, compact and very affordable Canon mirrorfree camera ... EOS M50. :)
 
Aug 10, 2018
7
0
BTW - For you financial geniuses who've commented already about Canon's 22% decline being "ok"/ "This drop is nothing to read into. It was predicted well ahead of time" are as dumb as the day is long. People at Canon lose their jobs over this kind of financial performance. This is the big boy corporate world. This decline is directly attributable to Sony and Canons poor product decisions along with the general market decline. They outpaced the market in shrinking :) People clearly deserve to be fired.
 

The Fat Fish

VFX Artist
Jul 29, 2017
85
52
26
Exeter, UK
Its a stills camera with video, not a video camera. Thats been Canon's philosophy, primarily due to demand from photographers.

If a person is looking for cinema quality video, they are not going to find it in a $2200 stills camera from Canon.
But why not? It can be found in almost every other big brands $2200 camera.

Sony is the Industry leader in Video, and does put more into their cameras. Video has always been a strong point for them, Canon is moving up in the video world, but thru a separate line of cameras.
It's a shame, I invested in Canon back in the day of the 550D and 5DII because of their video advantage. Now 10 years on and they have made no noticeable progress. That's a huge disappointment.

I haven't bothered to try the Video in my R, I bought it as a stills camera that does video in the rare event that I want some.
I had a play with it at a hands on day last week. It's infuriating for someone like myself who is a hybrid shooter and often switch from photo to video in a second or two.

While I know that some want Canon to change their philosophy, they are not likely to change what works for them. They continue to gain market share, every year, so they feel they are doing it right.
I'm not so sure, I think they will be forced the change. It won't be an overnight change but it will happen.