Canon Releases 2018 Q1 Financial Results

[Canon Rumors Guy]

Canon has released their 2018 Q1 financial results.</p>
<p><strong>Some photo gear related highlights:</strong></p>
<ul>
<li>Increase market share through sales expansion of new products, including mirrorless models</li>
<li>Improve product mix, and new product composition to raise profitability</li>
<li>As for interchangeable-lens cameras, we expect the market to continue to contract at a modest rate.</li>
<li>In the first quarter, although unit sales in the same period last year were at a high level, resulting from the resolution of shortages that arose following the Kumamoto earthquake in 2016, we posted 1.05 million in unit sales, limiting our decline to 3%.</li>
<li>As the market and our own sales were in line with our plan in the first quarter, we left our projection for the full year unchanged and still expect the market to decline 4% to 11 million units and our own sales to be 5.5 million units, which is in line with last year.</li>
<li>From a profit perspective, by raising the proportion of sales generated by new products and solidly expanding sales of high amateur models, we will improve product mix.</li>
<li>This is part of our full-lineup strategy to further stimulate demand for interchangeable-lens cameras and our aim to capture demand from users looking to move up in class in the future. Under this strategy, we consider the EOS M50 to be a driver of sales. It is the first of our entry-class models to feature 4K video and it incorporate the same AF functionality found in higher end models. This camera also realizes operability that makes it easy to enjoy taking pictures even for beginners. Through these kinds of new products we will stimulate demand and effect improvement in our market share.</li>
</ul>
<p>The full breakdown of Canon’s 2018 Q1 financials is after the break.</p>
<p><!--more--></p>
<p><strong>Presentation Material</strong></p>
<a href="http://www.canonrumors.com/wp-content/uploads/2018/04/2018-1QPresentation-Material.pdf" class="pdfemb-viewer" style="" data-width="max" data-height="max"  data-toolbar="bottom" data-toolbar-fixed="off">2018-1QPresentation-Material
</a>
<p><strong>2018 Q1 Results</strong></p>
<a href="http://www.canonrumors.com/wp-content/uploads/2018/04/2018-1QResults.pdf" class="pdfemb-viewer" style="" data-width="max" data-height="max"  data-toolbar="bottom" data-toolbar-fixed="off">2018-1QResults
</a>
<p><strong>Speech Summary</strong></p>
<a href="http://www.canonrumors.com/wp-content/uploads/2018/04/conf2018q1e-sum.pdf" class="pdfemb-viewer" style="" data-width="max" data-height="max"  data-toolbar="bottom" data-toolbar-fixed="off">conf2018q1e-sum
</a>
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[unfocused]

I'll leave it to those who are more capable to do the in-depth analysis, but once again, it seems that the cameras and features that many people on this forum complain about are the cameras and features that are driving profitability.

 

[Mt Spokane Photography]

I'll leave it to those who are more capable to do the in-depth analysis, but once again, it seems that the cameras and features that many people on this forum complain about are the cameras and features that are driving profitability.

That's always been the case, Even if the markup is high on 1 series cameras, the quantity sold is low. They churn out entry level cameras by the boatload, and now production of the cameras and lenses is mostly totally automated, so profits per unit are very good.

Still, overall, camera sales continue to drop and will probably keep on dropping as camera phones produce a image good enough for 99% of photographers.

 

[melgross]

It’s not bad, actually. While first quarter is down, they expect a modest increase for the full year in sales. They seem to be emphasizing growth with new hardware and new models, including mirrorless, which they specifically mentioned.

Nikon seems to be more in hunker down mode. It will be interesting to see what their financials will say.

 

[Talys]

I'll leave it to those who are more capable to do the in-depth analysis, but once again, it seems that the cameras and features that many people on this forum complain about are the cameras and features that are driving profitability.

That's always been the case, Even if the markup is high on 1 series cameras, the quantity sold is low. They churn out entry level cameras by the boatload, and now production of the cameras and lenses is mostly totally automated, so profits per unit are very good.

Still, overall, camera sales continue to drop and will probably keep on dropping as camera phones produce a image good enough for 99% of photographers.

Pretty much that. My 80D is still my go to camera for a lot of stuff, and I can't really imagine much that they could build to make it massively better. It doesn't mean I won't buy another camera, but that's mostly because I want another body that's similar to 80D, not because I need more tech.

Interesting that profits are actually up, despite the decline in sales.

 

[KirkD]

Still, overall, camera sales continue to drop and will probably keep on dropping as camera phones produce a image good enough for 99% of photographers.

They will also continue to drop until Canon can a) catch up to Sony's full frame mirrorless break-away and b) be more competitive with Sigma's steady stream of Art series lenses.

 

[Talys]

Still, overall, camera sales continue to drop and will probably keep on dropping as camera phones produce a image good enough for 99% of photographers.

They will also continue to drop until Canon can a) catch up to Sony's full frame mirrorless break-away and b) be more competitive with Sigma's steady stream of Art series lenses.

Although there may be a short bump when Canon releases a full frame mirrorless, I think this will have a tiny impact on overall sales numbers, because there are a lot more Rebels and M's sold than there will ever be of $2000-$3000 cameras. Yes, anyone reading this forum will at least be interested in them, but for the vast majority of camera-buyers, unless full frame drops down to $500 bodies, it's not going to happen, because their ILC budget with everything in -- including a couple of lenses -- is in the three digits.

I don't think that Sigma Art lenses have much impact on Canon's sales. There aren't a ton of these sold, and a lot of people rarely consider third-party lenses anyways, for various reasons.

 

[neuroanatomist]

They will also continue to drop until Canon can a) catch up to Sony's full frame mirrorless break-away...

Which break away is that? Meanwhile, back here in the real world or most of us live, Canon FF ILCs are outselling Sony FF ILCs. I welcome you to join us in the real world, but of course you are free to continue living in your fantasy land.

 

[KirkD]

Which break away is that? ... I welcome you to join us in the real world, but of course you are free to continue living in your fantasy land.

You may wish to me to a semi-pro full frame mirrorless camera that Canon has right now, then compare that to the Sony A7III if you wish to have a wake-up call.

 

[neuroanatomist]

Which break away is that? ... I welcome you to join us in the real world, but of course you are free to continue living in your fantasy land.

You may wish to me to a semi-pro full frame mirrorless camera that Canon has right now, then compare that to the Sony A7III if you wish to have a wake-up call.

Sorry, I'm not the one who's dreaming. You stated that Canon's sales will continue drop until they release a FF MILC to catch up to Sony's 'break-away', yet Canon FF ILCs are already outselling Sony's 'break-away FF MILCs'.

Don't worry, I'm sure that Canon will make exactly the camera you desire...in your dreams. Don't bother waking up, apparently reality is too hard for you to grasp anyway.

 

[unfocused]

They will also continue to drop until Canon can a) catch up to Sony's full frame mirrorless break-away and b) be more competitive with Sigma's steady stream of Art series lenses.

Exhibit A in proving my point that too many forum dwellers are delusional and promote viewpoints and opinions that are completely at odds with reality.

 

[KirkD]

Exhibit A in proving my point that too many forum dwellers are delusional and promote viewpoints and opinions that are completely at odds with reality.

Your failure to point to a Canon full frame mirrorless camera is affirmation of how Canon has fallen behind Sony in that category. Furthermore, Canon sales dropped by 2% last year and another 1.2% in this first quarter. In the same time period, Sony sales increased by 11%. Sony is now the #2 Camera manufacturer, pulling ahead of Nikon and topped only by Canon. Analysts are forecasting 2018 as Given the market analysts graphs, Sony will become #1 in the world by the end of the first quarter 2019 UNLESS Canon really ups their FF mirrorless game. As far as low end cameras go, Canon is doing well, but at the semi-pro level, the absence of a FF mirrorless that can even begin to match Sony's A7III fairly screams "catch up".

 

[zim]

Exhibit A in proving my point that too many forum dwellers are delusional and promote viewpoints and opinions that are completely at odds with reality.

Your failure to point to a Canon full frame mirrorless camera is affirmation of how Canon has fallen behind Sony in that category. Furthermore, Canon sales dropped by 2% last year and another 1.2% in this first quarter. In the same time period, Sony sales increased by 11%. Sony is now the #2 Camera manufacturer, pulling ahead of Nikon and topped only by Canon. Analysts are forecasting 2018 as Given the market analysts graphs, Sony will become #1 in the world by the end of the first quarter 2019 UNLESS Canon really ups their FF mirrorless game. As far as low end cameras go, Canon is doing well, but at the semi-pro level, the absence of a FF mirrorless that can even begin to match Sony's A7III fairly screams "catch up".

It's pretty clear that Canon are building their mirrorless market from the bottom up.

Why are Sony not #1 in the world right now as Canon has no matching FF product and hasn't for quite some time?
11% of what?

 

[Talys]

Which break away is that? ... I welcome you to join us in the real world, but of course you are free to continue living in your fantasy land.

You may wish to me to a semi-pro full frame mirrorless camera that Canon has right now, then compare that to the Sony A7III if you wish to have a wake-up call.

I think that full frame mirrorless is an important segment because there are customers who clearly want one. It is clearly not the only segment that matters, as Canon doesn't make one yet sells more cameras than Sony.

I also think that it is a phenomenal marketing job by Sony, courting reviewers to convince people to want a full frame camera of any sort. Frankly, I think that many people shopping for a camera are much better served by APSC, as they are far cheaper, have far les expensive high quality lenses, and fit the criteria of 'small and light' without breaking a sweat and are proportionately sized.

Case in point, a recent review suggesting that the a7-3 is a great camera to recommend people as their first enthusiast camera. Say what? Why on earth would anyone spend $2000 + lens + flash + accessories if they don't know exactly what they are looking for out of a camera? Just go spend $500 on some APSC and figure it out, first. So what if your ISO 3200 photos are grainier?

I also really do not understand people who want a tiny camera and giant lenses, and even less so, people who want an expensive camera and junky but little lenses.

 

[neuroanatomist]

Furthermore, Canon sales dropped by 2% last year and another 1.2% in this first quarter. In the same time period, Sony sales increased by 11%. Sony is now the #2 Camera manufacturer, pulling ahead of Nikon and topped only by Canon. Analysts are forecasting 2018 as Given the market analysts graphs, Sony will become #1 in the world by the end of the first quarter 2019 UNLESS Canon really ups their FF mirrorless game.

You keep using numbers. I do not think they mean what you think they mean.

 

[Canon Rumors Guy]

I updated the post with the correct speech summary, Canon put the wrong one in the zip file.

 

[DaviSto]

They will also continue to drop until Canon can a) catch up to Sony's full frame mirrorless break-away and b) be more competitive with Sigma's steady stream of Art series lenses.

KirkD = King Canute.

Badge of honour for mindless bravery despite the facts

 

[Adelino]

How can someone take a report that shows profits are up and turn it around to mean Canon are doomed?

 

[neuroanatomist]

How can someone take a report that shows profits are up and turn it around to mean Canon are doomed?

"If Canon doesn't immediately make and launch [the camera I want with the features I want], they are doomed."
—Delusional Forum Dweller

 

[woodman411]

How can someone take a report that shows profits are up and turn it around to mean Canon are doomed?

"If Canon doesn't immediately make and launch [the camera I want with the features I want], they are doomed."
—Delusional Forum Dweller

I blame dpreview. I like Sony products, but they have unreasonably elevated Sony and influenced so many people who really don't know much about cameras.