Canon Profits Drop 16% in Second Quarter

[StudentOfLight]

The article discussed the drop in compact sales, which has nothing to do with IQ and everything to do with the ubiquity of smartphones.

The article also discussed ILCs.

Despite firm sales in Japan, interchangeable-lens digital cameras continued to face severe conditions in other regions...

[Funny, coming from exactly the person who likes to quote sales numbers as proof of Canon's product superiority. So yeah, by your own logic, smartphone cameras eating away Canon's market share means they must be better .

Exactly. Smartphone cameras best meet the needs of far more people than dSLRs. Do you disagree?

I guess the DxO one camera is looking like a good business decision.

 

[jonathan7007]

Sony has already told the financial press that the company will back away from Sony-branded consumer devices to focus on component supply, like sensors. So they are signalling that they will move out of camera bodies (my interpretation).

Sony's news release can be found on Reuters. About a month ago.

CR readers, do you think the smartphone addons like the DxO 1" sensor camera will gain enough marketshare to reward any player with some profits? (I have forgotten the release price.)

 

[AvTvM]

Clearly, consumers are dissatisfied with the low ISO DR offered by Canon's sensors and disillusioned about the prospects of Canon improving that low ISO DR ...

yes, thats part of it. But even more so, Canon is not offering enough attractive products. Expensive new L lenses, as good as they may be don't do it for the majority of photographers, if there are no

Myself and obsiouly many other former and potential new customers are holding off buying any more Canon sh*t, until they offer
* a fully competitive APS-C mirrorless system
* a fully competitive FF mirrorless system
* fully competitive APS-C and FF sensors in all of their cameras - with and without mirrors
* improved wireless ETTL protocol with 2nd curtain flash and zoom head control
* stunning new Eye Control AF system (v2.0) ...
* other truly injovative stuff that helps getting the photots we want rather than just being electronic fluff

No, I am definitely not going to buy yet another marginally improved mirrorslapper. Yes I am happy to hurt Canon sales. If need be, for an indefinite period of time. Until they get the message.

 

[roguewave]

[Funny, coming from exactly the person who likes to quote sales numbers as proof of Canon's product superiority. So yeah, by your own logic, smartphone cameras eating away Canon's market share means they must be better .

Exactly. Smartphone cameras best meet the needs of far more people than dSLRs. Do you disagree?

No, that's right - many people choose smartphone cameras because of aspects like size, convenience, connectivity and not because they produce better images. Which is exactly why I think your bringing in sales numbers in camera comparisons is inconclusive. Higher sales may or may not mean better cameras; people may base their buying decisions of such factors as existing lens collections, resale value, customer service, that have nothing to do with the camera quality itself.

 

[dolina]

Looking forward to CIPA report.

In the Philippines the sale of dedicated still cameras declined 10% year after year since 2013.

There is even a rumor that Sony will cease sales here.

 

[LonelyBoy]

CR readers, do you think the smartphone addons like the DxO 1" sensor camera will gain enough marketshare to reward any player with some profits? (I have forgotten the release price.)

Not for me - the advantage of the smartphone camera is that it's already in my pocket. If I have to bring something else, especially something that doesn't easily fit into a pocket, I'll just bring a real camera, whether it's the 5D3, SL1, or an even smaller model (like an LX100/ RX100iv). I don't get the appeal of smartphone camera addons, at all.

 

[dolina]

CR readers, do you think the smartphone addons like the DxO 1" sensor camera will gain enough marketshare to reward any player with some profits? (I have forgotten the release price.)

Not for me - the advantage of the smartphone camera is that it's already in my pocket. If I have to bring something else, especially something that doesn't easily fit into a pocket, I'll just bring a real camera, whether it's the 5D3, SL1, or an even smaller model (like an LX100/ RX100iv). I don't get the appeal of smartphone camera addons, at all.

It could have enough appeal to be profitable for DxO.

The come on with the camera is a hardware connectivity with smartphones for direct Internet sharing.

Canon's so conservative with their products they missed the boat with it by dragging their feet with stupid easy connectivity with smartphones.

RX100iv is $1,000. More coin that casual photogs would spring for.

We on CR do not think it is much as we are used to buying 1DX, 5Ds, 7D2 and the like.

 

[George D.]

The Powershot line is way overextended. Diversification is one thing oversupply is another.

There are currently thirteen (13) different SX series models, ten (10) ELPH, seven (7) A and four (4) N series models. That's 34 models marketed in different colors too. Of course Canon is losing profit, all these cameras can be equaled or bested by a good smart phone. Such a waste of resources. Who even wants to read the specs of 34 different point & shoot cameras to select one.

There should be an amalgamation of all these series, half of them models or less plus the S and G series.

 

[Loswr]

Clearly, consumers are dissatisfied with the low ISO DR offered by Canon's sensors and disillusioned about the prospects of Canon improving that low ISO DR ...

yes, thats part of it. But even more so, Canon is not offering enough attractive products. Expensive new L lenses, as good as they may be don't do it for the majority of photographers, if there are no

Myself and obsiouly many other former and potential new customers are holding off buying any more Canon sh*t, until they offer
* a fully competitive APS-C mirrorless system
* a fully competitive FF mirrorless system
* fully competitive APS-C and FF sensors in all of their cameras - with and without mirrors
* improved wireless ETTL protocol with 2nd curtain flash and zoom head control
* stunning new Eye Control AF system (v2.0) ...
* other truly injovative stuff that helps getting the photots we want rather than just being electronic fluff

Yeah, those steps will absolutely certainly stop ILCs from losing sales to smartphones. Doubtless, without a doubt. :

 

[dolina]

When Steve Jobs came back to Apple he cancelled a lot of projects and focused on a core product line.

If Canon's smart they will do the same. If they aren't they'll end up being like Leica before the M9.

 

[Tugela]

Seriously. They need to step up their game. All camera manufacturers got caught sleeping with the smartphone threat. But the writings on the wall with Sony. If Canon & Nikon don't change their smug attitude, they're gonna keep losing $$.

I'm sure Canon and Nikon will still be making cameras in a few years, I wonder if that's true for Sony.

Since their sales are increasing while those for Canon and Nikon are dropping like a rock, they probably will be.

 

[Loswr]

[Funny, coming from exactly the person who likes to quote sales numbers as proof of Canon's product superiority. So yeah, by your own logic, smartphone cameras eating away Canon's market share means they must be better .

Exactly. Smartphone cameras best meet the needs of far more people than dSLRs. Do you disagree?

No, that's right - many people choose smartphone cameras because of aspects like size, convenience, connectivity and not because they produce better images. Which is exactly why I think your bringing in sales numbers in camera comparisons is inconclusive. Higher sales may or may not mean better cameras; people may base their buying decisions of such factors as existing lens collections, resale value, customer service, that have nothing to do with the camera quality itself.

You make good points. They might even be relevant...if I claimed that selling more cameras meant they were of higher quality. But I haven't...so, they aren't.

 

[Tugela]

Sony has already told the financial press that the company will back away from Sony-branded consumer devices to focus on component supply, like sensors. So they are signalling that they will move out of camera bodies (my interpretation).

Sony's news release can be found on Reuters. About a month ago.

CR readers, do you think the smartphone addons like the DxO 1" sensor camera will gain enough marketshare to reward any player with some profits? (I have forgotten the release price.)

If that were so they would not be refreshing so many of their branded camera products with new significant updates.

 

[Tugela]

Looking forward to CIPA report.

In the Philippines the sale of dedicated still cameras declined 10% year after year since 2013.

There is even a rumor that Sony will cease sales here.

The demand for cameras that cost the equivalent of a years salary for the average Joe in third world armpits is low? What a surprise!

 

[Loswr]

If that were so they would not be refreshing so many of their branded camera products with new significant updates.

From Wikipedia:

Sony Vaio's latest designs were released during a period of low PC sales and included models with innovations such as magnetized stands and the Vaio Tap, which was designed with a completely separate keyboard. The latest models were complemented by the Windows 8 operating system.

Soon thereafter, Sony divested the Vaio line.

 

[Tugela]

The Powershot line is way overextended. Diversification is one thing oversupply is another.

There are currently thirteen (13) different SX series models, ten (10) ELPH, seven (7) A and four (4) N series models. That's 34 models marketed in different colors too. Of course Canon is losing profit, all these cameras can be equaled or bested by a good smart phone. Such a waste of resources. Who even wants to read the specs of 34 different point & shoot cameras to select one.

There should be an amalgamation of all these series, half of them models or less plus the S and G series.

They probably only need three P&S models: a pocketable version, a premier version with a better lens and a superzoom. There isn't really need for any more than that.

 

[dolina]

The same is being experienced worldwide but lazy to google the facts for you.

It would be an unpleasant surprise to DxO if Apple were to offer a larger image sensor in the next iPhone. ;D

Looking forward to CIPA report.

In the Philippines the sale of dedicated still cameras declined 10% year after year since 2013.

There is even a rumor that Sony will cease sales here.

The demand for cameras that cost the equivalent of a years salary for the average Joe in third world armpits is low? What a surprise!

 

[Tugela]

If that were so they would not be refreshing so many of their branded camera products with new significant updates.

From Wikipedia:

Sony Vaio's latest designs were released during a period of low PC sales and included models with innovations such as magnetized stands and the Vaio Tap, which was designed with a completely separate keyboard. The latest models were complemented by the Windows 8 operating system.

Soon thereafter, Sony divested the Vaio line.

That is because no one was buying their laptops. That isn't the case with their cameras.

You seem to be forgetting that their camera line up is driven by technology largely being developed on the backs of the cell phone market. There is relatively little additional investment required to be on the cutting edge as a result. For Sony the camera market is essentially free money.

That is not the case with Canon and Nikon. For them, new technology will require significant investment that is not being subsidised by other related industries, and in the end that burden will render them uncompetitive. It is like the arms race between the Soviet Union and the USA, ultimately the resource strain imposed by the arms industry and the lack of useable flowoff from that endeavour caused the collapse of the soviet system. Companies like Sony and Samsung WILL win in the end, if they stay the course. The technological dynamics are in their favor.

 

[unfocused]

The demand for cameras that cost the equivalent of a years salary for the average Joe in third world armpits is low? What a surprise!

Wow! That's offensive.

 

[unfocused]

Once again, I'm amused at how people respond without reading the article.

The world's largest camera maker said on Monday its second-quarter net profit fell to 68 billion yen ($552 million)... Analysts on average expected 65 billion yen...

So they beat analysts expectations by $3 billion yen.

Shares of Canon fell 0.75 percent ahead of the earnings release, compared with a 0.95 percent fall in the broader market.

So, even with the drop in earnings report, they beat the market.

So, Canon is doing better than the broader market and doing better than analysts predicted. And, let's not forget the bottom line: this is an announcement of smaller profits not an announcement of any loss.

It looks to me that Canon knows the market better and has better strategies than anyone on this forum.