Canon releases their Third Quarter 2020 financials

Canon Rumors Guy

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Canon has released their Third Quarter 2020 financials, and as one could have guessed COVID-19 continues to be a big challenge for the market.
Canon did have a bit of good news, as they have raised their full-year projecting for ILC’s by 500,000 units to 5.9million for 2020. The Canon EOS R5 and EOS R6 have been excellent sellers according to Canon, even with the manufacturing challenges.
Imaging System – Cameras:
As for camera demand, amid ongoing market contraction, we expect a significant drop in demand due to COVID-19 this year. However, in the third quarter, the camera market was stronger than expected thanks to a gradual increase in image capturing opportunities as people became more active. Taking this into account, we raised our full-year projection for the interchangeable-lens camera market by 0.5...
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amorse

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Jan 26, 2017
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I'm not sure how I feel about these lines (emphasis added by me):

"We started crowdfunding this camera on a Japanese site in September. This gave us access to a new user base that was able to make advance purchase reservations for a limited number of cameras which was reached soon after we started taking orders.

We will deploy this kind of product strategy and focus on improving profitability by streamlining product development, production, and market in preparation for decreasing sales.
"

I don't think anyone can predict how deep they'll go into reliance on a crowdfunding/pre-order model for development, but I could see that being a slippery slope.
 

blackcoffee17

EOS RP
Sep 17, 2014
544
594
5.9million was shipped but were they bought?

What can ILCs do that a 10yo camera cannot do if you just need photos for a budget-constrained client?
Well, they are 8 billion people on Earth. One camera for every 1300 people is not much. And who said people only want photos and no video?
Why should someone buy a 10 year old camera? I did but you can only buy them used with some risk involved and they are quite outdated, especially in video department.
 
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Dragon

EF 800L
May 29, 2019
310
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I'm not sure how I feel about these lines (emphasis added by me):

"We started crowdfunding this camera on a Japanese site in September. This gave us access to a new user base that was able to make advance purchase reservations for a limited number of cameras which was reached soon after we started taking orders.

We will deploy this kind of product strategy and focus on improving profitability by streamlining product development, production, and market in preparation for decreasing sales.
"

I don't think anyone can predict how deep they'll go into reliance on a crowdfunding/pre-order model for development, but I could see that being a slippery slope.
It would only be a slippery slope if the crowdfunding was necessary from a cash perspective, which it clearly is not. They are using this approach because a segment of the new generation seems to think that with this approach they are somehow involved in product development. I think that segment is more commonly known as "hipsters", but if they have money, Canon will be happy to figure out a way to relieve them of some of it. Probably not too much in that area that readers of this forum will be interested in, but hey, kudos for creativity to a company known to be ultra conservative.
 

YuengLinger

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5.9million was shipped but were they bought?

What can ILCs do that a 10yo camera cannot do if you just need photos for a budget-constrained client?
Where did you buy your "All posts must scold Canon" lens? You seem to enjoy using it!

Perhaps I should have been clearer: When I said that Canon's 4th quarter will be better than many, I wasn't in any way casting aspersions on other camera companies. I meant businesses in general. Restaurants, retail, pro photographers, and on and on. Covid-19, remember?

But at least Canon had some pent up demand for a pro-level, very fast, responsive mirrorless body. And the consumers buying such bodies are now considering and buying Rf lenses. So that's a little bump upwards compared to 2nd and 3rd quarter, I'm predicting. But predictions these days are often wild guesses!

But, oh! [Slapping myself on the forehead.] Canon forgot to include an Instagram button! :cry::cry::cry: I see why you are upset.

And, OH! Here's an idea! Hey, Canon, you should put a little camera on the back of the body so we can take selfies without having to turn that big lens around towards us! That will quadruple your sales of FF bodies!
 
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Kit.

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And, OH! Here's an idea! Hey, Canon, you should put a little camera on the back of the body so we can take selfies without having to turn that big lens around towards us! That will quadruple your sales of FF bodies!
I wonder if using a tiny video camera as an intelligent EVF proximity sensor has already been patented.
 
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canonmike

EOS 90D
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Jan 5, 2013
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Considering the ongoing decline in camera sales and revenue, affecting all MFG's, I am surprised but grateful for all the new camera gear coming down Canon's pipeline, seemingly spitting in the Covid Pandemic's eye, which has ultimately had a great impact on market sales, as well. Looking at what has happened to companies like Olympus and Pentax, they could have easily acquiesced and thrown in the towel, as well. Instead, in the midst of a terrible pandemic affecting the entire world, we get to celebrate one Canon offering after another. In the face of declining sales, it takes great courage for any company to continue developing new products. We are so thankful, Canon and I find it most satisfying to envision the big smiles on my fellow CR members' faces, as they do their own private Canon gear unboxings on their newly acquired EOS R5/R6's and more, often accompanied by those awsomely reviewed RF lenses. Canon, you have made a lot of us very happy.......
 

YuengLinger

Sufficiently Pixilated
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Dec 20, 2012
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Considering the ongoing decline in camera sales and revenue, affecting all MFG's, I am surprised but grateful for all the new camera gear coming down Canon's pipeline, seemingly spitting in the Covid Pandemic's eye, which has ultimately had a great impact on market sales, as well. Looking at what has happened to companies like Olympus and Pentax, they could have easily acquiesced and thrown in the towel, as well. Instead, in the midst of a terrible pandemic affecting the entire world, we get to celebrate one Canon offering after another. In the face of declining sales, it takes great courage for any company to continue developing new products. We are so thankful, Canon and I find it most satisfying to envision the big smiles on my fellow CR members' faces, as they do their own private Canon gear unboxings on their newly acquired EOS R5/R6's and more, often accompanied by those awsomely reviewed RF lenses. Canon, you have made a lot of us very happy.......
So well stated, and they deserve the thanks.

I was blessed with having two primary school kids home with me from March through last month. Homeschooling, summer camp, just keeping them engaged and learning were a real challenge, especially because my wife had shifting schedules and extended hours working at a hospital. Everybody was wearing masks, shopping was stressful and sad, and we weren't seeing our friends except on zoom.

And then Canon starts teasing and then filling in details, and finally releasing two beautiful new bodies to go with the great lenses from last year. And some new lenses this year too! And now the shipments are arriving for cooped up, optimistic, "damn the torpedoes" photographers of all stripes.

So many people were genuinely paralyzed by fear, and others, in my opinion, took advantage of the anxiety for their own ends. Meanwhile, Walmart employees, and those at many grocery stores, filling stations, plus plumbers, AC techs, electricians, and, of course HEALH CARE WORKERS, and others, put their fears aside, either for their own financial survival, or for their family, and out of a sense of doing their parts in getting us through.

You are so right, Canonmike. Canon kept a steady hand at the helm, keeping their employees working, keeping their plans moving ahead, and delighting so many passionate photographers. Yes, yes, plenty of distribution headaches and frustrations, but they did it, and they keep doing it.
 

CanonFanBoy

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Well, they are 8 billion people on Earth. One camera for every 1300 people is not much. And who said people only want photos and no video?
Why should someone buy a 10 year old camera? I did but you can only buy them used with some risk involved and they are quite outdated, especially in video department.
Not to mention much improved AF, IBIS, and except for the R6, much more opportunity for creative cropping. Swivel screen, touch screen, etc.
 

Mt Spokane Photography

I post too Much on Here!!
CR Pro
Mar 25, 2011
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It would only be a slippery slope if the crowdfunding was necessary from a cash perspective, which it clearly is not. They are using this approach because a segment of the new generation seems to think that with this approach they are somehow involved in product development. I think that segment is more commonly known as "hipsters", but if they have money, Canon will be happy to figure out a way to relieve them of some of it. Probably not too much in that area that readers of this forum will be interested in, but hey, kudos for creativity to a company known to be ultra conservative.
It actually gets people to plop down money in advance, it also gets them to tell friends and promote the new product so its free advertising that hits the target market directly. If it turns out to be a low interest item, Canon can tool up to produce a few and start work on version II.
 

fingerstein

EOS M6 Mark II
Sep 25, 2016
62
22
They started crowdfunding R5 but marketed as great hybrid cinema camera that shoots 8k... then, later, they said: Oh, sorry, this was built with overheating in mind.
 

Mt Spokane Photography

I post too Much on Here!!
CR Pro
Mar 25, 2011
16,444
1,428
Considering the ongoing decline in camera sales and revenue, affecting all MFG's, I am surprised but grateful for all the new camera gear coming down Canon's pipeline, seemingly spitting in the Covid Pandemic's eye, which has ultimately had a great impact on market sales, as well. Looking at what has happened to companies like Olympus and Pentax, they could have easily acquiesced and thrown in the towel, as well. Instead, in the midst of a terrible pandemic affecting the entire world, we get to celebrate one Canon offering after another. In the face of declining sales, it takes great courage for any company to continue developing new products. We are so thankful, Canon and I find it most satisfying to envision the big smiles on my fellow CR members' faces, as they do their own private Canon gear unboxings on their newly acquired EOS R5/R6's and more, often accompanied by those awsomely reviewed RF lenses. Canon, you have made a lot of us very happy.......
The cameras were developed long before Covid19 and we would have likely seen them much earlier had Covid19 not delayed them. They were not developed during Covid 19. Canon had no real choice but to go ahead, most of the money was already spent. They were caught by surprise at the sales figures so there was a reward for going ahead with the release. Sony and Nikon also had their new models already developed and had to overcome parts and labor shortages to release them.

The report also notes increased inventory levels which means slow sales of less popular models. Look for big sales of DSLR's, they are dying more quickly than expected. Canon hints at more high end models because of the higher profit. It doesn't cost a whole lot more to produce a R5 or R6 compared to a R but over the higher price means a huge profit.
 
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EOS 4 Life

EOS M6 Mark II
Sep 20, 2020
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"we raised our full-year projection for the interchangeable-lens camera market by 0.5 million units to 5.9 million units.

Although we expect our full-year sales to decline in line with the market to 2.7 million"

2.7/5.9 M units is quite a decline.
That would mean 46% market share.
It was 45% in 2019.
 
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dolina

millennial
Dec 27, 2011
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Where did you buy your "All posts must scold Canon" lens? You seem to enjoy using it!

Perhaps I should have been clearer: When I said that Canon's 4th quarter will be better than many, I wasn't in any way casting aspersions on other camera companies. I meant businesses in general. Restaurants, retail, pro photographers, and on and on. Covid-19, remember?

But at least Canon had some pent up demand for a pro-level, very fast, responsive mirrorless body. And the consumers buying such bodies are now considering and buying Rf lenses. So that's a little bump upwards compared to 2nd and 3rd quarter, I'm predicting. But predictions these days are often wild guesses!

But, oh! [Slapping myself on the forehead.] Canon forgot to include an Instagram button! :cry::cry::cry: I see why you are upset.

And, OH! Here's an idea! Hey, Canon, you should put a little camera on the back of the body so we can take selfies without having to turn that big lens around towards us! That will quadruple your sales of FF bodies!
Are you a Canon shareholder or employee?

I'm pointing out marketing language to what they really mean as it casts a reality distortion field giving a perception of products sold and not what has been produced.

They managed to ship X amount of products but does it mean all of it sold as of press time?

Were pro-level ILC selling well during lockdown? Did wedding or events photographers getting them for March to May?

Were the cameras bought for the Tokyo Olympics in mind that was later moved to next year?

Publicly listed companies are under pressure to provide positive results from shareholders.

How are their accounts receivable?
 

YuengLinger

Sufficiently Pixilated
CR Pro
Dec 20, 2012
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Are you a Canon shareholder or employee?

I'm pointing out marketing language to what they really mean as it casts a reality distortion field giving a perception of products sold and not what has been produced.

They managed to ship X amount of products but does it mean all of it sold as of press time?

Were pro-level ILC selling well during lockdown? Did wedding or events photographers getting them for March to May?

Were the cameras bought for the Tokyo Olympics in mind that was later moved to next year?

Publicly listed companies are under pressure to provide positive results from shareholders.

How are their accounts receivable?
Are you a financial reporter?

Sigh...
 
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Aregal

EOS M6 Mark II
Oct 3, 2018
86
87
I'm not sure how I feel about these lines (emphasis added by me):

"We started crowdfunding this camera on a Japanese site in September. This gave us access to a new user base that was able to make advance purchase reservations for a limited number of cameras which was reached soon after we started taking orders.

We will deploy this kind of product strategy and focus on improving profitability by streamlining product development, production, and market in preparation for decreasing sales.
"

I don't think anyone can predict how deep they'll go into reliance on a crowdfunding/pre-order model for development, but I could see that being a slippery slope.
IMO, it's a way to cut costs and it also provides direct customer feedback to gauge consumer interest because people are willing to up money towards an idea. Crowdfunding paired with the rapid-prototyping strategy they employed with the C70 might be the future of product lifecycles.

For all we know, the C70 could've been a knee-jerk reaction to the A7siii; finding what technology was in development, mashing up a product, and figuring out production. I think an article was posted here where Canon talked about how they quickly made the C70. [someone correct me if I'm wrong]

"Pivoting quickly" is a term that I'm hearing more and more in my meetings and with tightened budgets and deadlines becoming the norm, it seems that all companies must adapt to address this new "knee-jerk" economy we're in.
 

CanonFanBoy

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They started crowdfunding R5 but marketed as great hybrid cinema camera that shoots 8k... then, later, they said: Oh, sorry, this was built with overheating in mind.
Hybrid stills camera that shoots video. Never was it marketed as a cinema camera. Canon also published the 8k video and other limitations before release. :rolleyes:
 
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