Canon to Leave the Entry Level Point & Shoot Market?

Canon Rumors Guy

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<p>There are couple of reports today saying that Canon plans to leave the sub $200 compact point and shoot market. The segment has been decimated by smartphones over the last 3-5 years and sales are no where near what they were.</p>
<p>The move makes a lot of sense, Canon would be better suited putting development dollars into DSLRs, lenses, advanced compacts and the Cinema EOS lines.</p>
<p>Source: [<a href="http://translate.google.com/translate?sl=ja&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fdigicame-info.com%2F2014%2F02%2Fpost-570.html" target="_blank">DCI</a>] via [<a href="http://photorumors.com/2014/02/24/canon-is-considering-to-withdraw-from-the-low-priced-compact-digital-camera-market/" target="_blank">PR</a>]</p>
<p><strong><span style="color: #ff0000;">c</span>r</strong></p>
 

takesome1

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Aug 23, 2013
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Re: Canon to Leave the Entry Level Point & Shoot Market?

Correction.

Canon has already been removed from the sub $200 point and shoot market.
They have already been replaced by smart phones.
Like the house guest at the party that just will not leave, Canon seems to have hung around to long.
 

dhofmann

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Nov 3, 2011
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Re: Canon to Leave the Entry Level Point & Shoot Market?

Optical zoom will always outperform digital zoom, and there aren't yet many smartphones with optical zoom (and those that do look like the neighbor kid's toys on Toy Story), so smartphones haven't yet replaced, for example, the $90 Canon PowerShot A2200.
 

neuroanatomist

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Re: Canon to Leave the Entry Level Point & Shoot Market?

Fixed lens cameras accounted for ~46% of the total revenue from digital cameras last year. In general, the cheaper models of a given product line outsell the high end models. Seems like a lot of ¥ to throw away.
 

risc32

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Feb 24, 2012
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Re: Canon to Leave the Entry Level Point & Shoot Market?

dhofmann said:
Optical zoom will always outperform digital zoom, and there aren't yet many smartphones with optical zoom (and those that do look like the neighbor kid's toys on Toy Story), so smartphones haven't yet replaced, for example, the $90 Canon PowerShot A2200.

no, the party's over. they called "last call" a couple years ago canon just hasn't noticed. They should also stop making what they are making with their other nonSLR cameras also. They stink. go big or go home. or what will more than likely happen, the market will send you home. i just hope they leave with a couple bucks in their pocket.
 

rowlandw

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Sep 16, 2012
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Re: Canon to Leave the Entry Level Point & Shoot Market?

There are way too many overlapping and unexcing p&s models of all makes to divide a shrinking pie.
 

Hesbehindyou

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Jun 6, 2011
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Re: Canon to Leave the Entry Level Point & Shoot Market?

Canon Rumors said:
Canon would be better suited putting development dollars into DSLRs, lenses, advanced compacts and the Cinema EOS lines.

How many development dollars does it take to put the guts of a mid-range model in a slightly larger body with crippled firmware?

That said, with sales falling off a cliff Canon will be losing the economies of scale that made the tight margins in this sector worthwhile.
 

neuroanatomist

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Re: Canon to Leave the Entry Level Point & Shoot Market?

rowlandw said:
There are way too many overlapping and unexcing p&s models of all makes to divide a shrinking pie.

I'm not so sure that's true. Yes, if you look on Amazon or the Canon (or other vendor) website, there's a huge selection. But, a) at those price points, a difference of $15-30 is a differentiator, and b) P&S sales are at brick-and-mortar outlets are a major fraction. The plethora of similar models gives distributors a choice - Target and Walmart often sell slightly different models, for example.
 

Dylan777

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Re: Canon to Leave the Entry Level Point & Shoot Market?

FF mirrorless body is about same size as P&S. It's time Mr. Canon, before it too late ::)
 

cliffwang

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Re: Canon to Leave the Entry Level Point & Shoot Market?

dhofmann said:
Optical zoom will always outperform digital zoom, and there aren't yet many smartphones with optical zoom (and those that do look like the neighbor kid's toys on Toy Story), so smartphones haven't yet replaced, for example, the $90 Canon PowerShot A2200.

Of course people know the $90 A2200 has better IQ. Years ago people use P&S camera because of the convenience. Now they have better choices, smartphones, because it's much more convenient. If they really care about IQ, they probably use dSLR already. Nokia phone has 40MP camera, Sony phone has 20MP camera, and now Samsung phone has 16MP camera. In two years every phone maker will have build-in 20MP+ camera. I can see most people don't need a P&S camera in few years. Canon should make FF attachable Lens-style camera like Sony QX10/QX100. I think that's the future of the P&S.
 

Chuck Alaimo

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Feb 8, 2012
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Re: Canon to Leave the Entry Level Point & Shoot Market?

Dylan777 said:
FF mirrorless body is about same size as P&S. It's time Mr. Canon, before it too late ::)

don't see how this changes the equation. Mirrorless FF will be at least 1k more expensive than anyone in the entry level P&S category is looking to spend ($200 or so vs $1500-2500)...

Mirrorless doesn't get you to facebook. Mirrorless doesn't let you watch youtube. Mirrorless doesn't let you do video chat. Mirrorless doesn't give you a dataplan! Mirrorless does not give you angry birds, words with friends or candy crush saga, or any of the other apps like that.... Mirrorless won't get you to porn (unless you film it yourself)...

Those not buying entry level P&S cameras kind of want 1 device. Cell phone cameras for the most part are pretty much as good in most situations as a p&S - mind you, we're talking about very casual shooters here. Mirrorless is way more expensive, not as capable (for what that market wants). Mirrorless, especially FF mirrorless is gonna only appeal to a unique niche mix of pros, hobbyists and enthusiasts or those who travel a lot!

Either way, it makes sense, anything below slr's has to offer something compelling, and entry level P&S's are far from compelling!!!!
 

jrista

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Re: Canon to Leave the Entry Level Point & Shoot Market?

neuroanatomist said:
Fixed lens cameras accounted for ~46% of the total revenue from digital cameras last year. In general, the cheaper models of a given product line outsell the high end models. Seems like a lot of ¥ to throw away.

Based on the actual article (translated from japanese), it doesn't sound like they are exiting immediately. The chart does show some fairly significant declines in the market (by about 40%) since 2010. The article also says they will be halving their market participation every couple of years...so they aren't going to be exiting over night. They will be diminishing their presence in the ultra low end range of that market, and shifting the excess resources to other cameras at the higher end of the range of that market. It doesn't even sound like they are going to be shifting the resources to DSLRs...just more lucrative compact camera models and accessories.

It really doesn't sound like they are throwing away money, it sounds like they are shifting their resources to maximizing the potential of that market where there is still potential to be had.

Also, the article was japanese...who knows if it really has anything to do with the sales of these models in western countries. If they are still making money on them here (I kind of doubt they are making all that much still, especially with the likes of the iPhone and Lumia 1020 on the market), they may still sell them here.
 

unfocused

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Re: Canon to Leave the Entry Level Point & Shoot Market?

jrista said:
neuroanatomist said:
Fixed lens cameras accounted for ~46% of the total revenue from digital cameras last year. In general, the cheaper models of a given product line outsell the high end models. Seems like a lot of ¥ to throw away.

Based on the actual article (translated from japanese), it doesn't sound like they are exiting immediately. The chart does show some fairly significant declines in the market (by about 40%) since 2010. The article also says they will be halving their market participation every couple of years...so they aren't going to be exiting over night. They will be diminishing their presence in the ultra low end range of that market, and shifting the excess resources to other cameras at the higher end of the range of that market. It doesn't even sound like they are going to be shifting the resources to DSLRs...just more lucrative compact camera models and accessories.

It really doesn't sound like they are throwing away money, it sounds like they are shifting their resources to maximizing the potential of that market where there is still potential to be had.

Also, the article was japanese...who knows if it really has anything to do with the sales of these models in western countries. If they are still making money on them here (I kind of doubt they are making all that much still, especially with the likes of the iPhone and Lumia 1020 on the market), they may still sell them here.

AT LAST...SOMEONE ACTUALLY READ THE ARTICLE!!

This drives me nuts on this forum. People see a headline and start commenting without bothering to go to the original source and read was was actually written.

I read it the same way Jon did. They aren't making some announcement about leaving the market, they are just assessing the current and possible future market situation and suggesting that they will reduce their presence and concentrate on niche models that can be sold at greater profit.

There is really no news here.
 

neuroanatomist

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Re: Canon to Leave the Entry Level Point & Shoot Market?

jrista said:
Also, the article was japanese...who knows if it really has anything to do with the sales of these models in western countries. If they are still making money on them here (I kind of doubt they are making all that much still, especially with the likes of the iPhone and Lumia 1020 on the market), they may still sell them here.

FWIW, the Americas and Europe each accounted for ~30% of fixed-lens cameras in 2013, so 'western countries' are buying the majority of P&S cameras (although the distribution of high end vs. low end could vary by geography).
 

jrista

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Re: Canon to Leave the Entry Level Point & Shoot Market?

neuroanatomist said:
jrista said:
Also, the article was japanese...who knows if it really has anything to do with the sales of these models in western countries. If they are still making money on them here (I kind of doubt they are making all that much still, especially with the likes of the iPhone and Lumia 1020 on the market), they may still sell them here.

FWIW, the Americas and Europe each accounted for ~30% of fixed-lens cameras in 2013, so 'western countries' are buying the majority of P&S cameras (although the distribution of high end vs. low end could vary by geography).

So, is that 60% of a market that shrunk by 40% over the last three years, or a broader market? I mean, if the market is shrinking, and western countries were the bulk of the sales in that market, then that would seem to mean that the bulk of the shrink in market share came from us as well.

So even if we are the major buyers of "fixed-lens cameras" (that's pretty broad right there...it encompasses more than the sub $200 camera market), then I am not really surprised by the article or the claim that Canon is going to ease out of the ultra low end of that market. I know a LOT more people these days have the Lumia 1020 here in Colorado. I see them everywhere now (I have the Lumia 920, and the large lens on the back of everyone else' Lumia is always telling me I need to upgrade! :p) Everyone else has an iPhone...I rarely ever see anyone taking pictures with a cheap P&S anymore...everyone does their photography with their phones (and there are of course the few nitwits who take photos with their giant iPads as well.)
 

Mt Spokane Photography

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Re: Canon to Leave the Entry Level Point & Shoot Market?

I suspect that Canon is losing money on the low end cameras. Even if they sell a ton of them, losing or making no money in order to move them is not all that smart, and spending more money to develop, tool, stock, and advertise new models is a poor investment. Canon is seeing good sales of the super zoom P&S cameras, and they make a high profit, so I expect to see more emphasis on them. The SX50 has received very high user ratings.
 

lopicma

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Re: Canon to Leave the Entry Level Point & Shoot Market?

I would still rather use a point and shoot camera than a cell phone... Only advantage the phone has is the post processing features... which may indicate I took a bad picture to begin with. LOL

Anyway, I hope Canon can catch up to the likes of Sony, Pentax and Olympus - and FAST! Both Nikon and Canon have fallen behind in innovative features, and in some cases current technologies.

Come on Canon, I'm routing for you!
 

J.R.

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Re: Canon to Leave the Entry Level Point & Shoot Market?

Interesting take by Thom Hogan on this news

http://www.gearophile.com/newsviews/canon-retreats.html

Canon more so than any of the other compact camera makers seems to be taking more of a “if you can’t beat them, join them” approach towards smartphones at the moment. Whether that’s enough to keep the rest of their compact line alive remains to be seen.

What Canon’s new compact lineup looks like is this: waterproof cameras, cameras with huge focal length ranges, the N series I just described, and the very high end G1x and G## cameras.

Canon isn’t the first to make a withdrawal at the low end. Fujifilm, Olympus, and Panasonic have already made similar comments, and Casio recently has done the same. Pentax executives have been quoted as saying the company is just concentrating on waterproof and high-end compact cameras, which brings us back to Nikon, the lone hold-out in the model reduction campaign. As it is during the last decade Nikon has gone from being #5 in compacts to #1 in terms of unit volume and are the winners of a what may end up a Pyrrhic victory.

Last one out should close the door. But you have to get out first ;~).
 

Rienzphotoz

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Aug 22, 2012
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Re: Canon to Leave the Entry Level Point & Shoot Market?

neuroanatomist said:
Fixed lens cameras accounted for ~46% of the total revenue from digital cameras last year. In general, the cheaper models of a given product line outsell the high end models. Seems like a lot of ¥ to throw away.
When they say "leave the entry level point & shoot market", maybe they mean not develop any more new designs/models but continue to sell the existing ones ... which would mean they don't need to spend more money on R&D, designing teams etc ... in which case they may not be throwing away the ¥
 
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