Canon Profits Decrease – Decline In Compact Cameras (Not Surprising) and Printers Main Culprit

by planetMitch

Interesting story on canonrumors yesterday. Canon's struggling with some lagging sales – mainly in printers and compact cameras.

I don't think anyone is surprised by the compact cameras slump. Heck, I'm kinda surprised anyone is still buying them (tho the high end cameras make more sense than the cheapies that the kids used to buy like crazy).

And printers… well I haven't used a printer in my home in years. Just not worth the cost of supplies and ink!

What gets interesting, if you get past the panic headlines of a decrease in profits (and let's not be confused, Canon is NOT losing money, they still declared a good profit), you see that in the details they say DSLR sales are not declining – but neither are they increasing.

Within the Imaging System Business Unit, sales volume of interchangeable-lens digital cameras remained at around the same level as the previous year owing to healthy demand for the advanced-amateur-model EOS 80D, launched this year, and the EOS M3 and M10, which were released the previous year, in Japan and other Asian markets. As for digital compact cameras, while sales volume declined amid the ongoing contraction of the market, PowerShot G-series cameras, the lineup of which grew to five models in the previous year, enjoyed solid demand. As for inkjet printers, sales promotions for new products contributed to growth in unit sales in developed markets, such as those in Europe, the U.S. and Japan, while models launched in the previous year equipped with large-capacity ink tanks enjoyed strong demand in Asia, a region in which market conditions have remained sluggish. Consequently, unit sales for the segment remained at approximately the same level as for the corresponding period of the previous year. As a result, along with the negative effect of unfavorable currency exchange rates, sales for the business unit decreased by 10.6% to ¥234.8 billion year on year, while operating profit totaled ¥19.6 billion, a year-on-year decline of 32.6%.

And this:

As for cameras, although demand for interchangeable-lens digital cameras continued to recover in developed countries, demand across Asia continued to decline compared with last year.

While there wasn't any specific mention of Cinema Cameras in the details that I could find, my guess based on what we saw at NAB is that they're still selling well. I saw a wide variety of cameras being used on the show floor with several of them being Canon EOS C100 or Canon EOS C300s and there were still plenty of folks shooting video reports with DSLRs and Mirrorless. And yes, quite a few iPhones.

They're also projecting a decrease in DSLR sales for the year tho at about 7% (tho I couldn't find anywhere what IJP stands for):


From the original story:

From Reuters

  • Q1 operating profit falls 39 pct, more than expected
  • Office equipment, compact digital camera sales slump
  • Firm trying to diversify away from consumer cameras (Adds segment breakdown, context)

TOKYO, April 26 Japan’s Canon Inc on Tuesday reported a steeper-than-expected fall in first-quarter operating profit on weaker demand for office equipment in emerging markets and slower global sales of compact digital cameras.

The world’s biggest maker of printers and cameras also cut its outlook for the full year ending December.

For January-March, operating profit dropped 39 percent to 40.1 billion yen ($361.4 million), the company said. That missed the 67.74 billion yen average of five analyst estimates, according to Thomson Reuters data.

Canon said it now expects full-year operating profit of 300 billion yen, lower than a previous forecast of 360 billion yen.

Quarterly operating profit from office equipment, its biggest segment, fell 38 percent from a year earlier while profit from imaging systems such as cameras fell 33 percent.

read the rest: Canon Says Q1 Profit Hit by Weak Printer, Camera Sales

(cover photo credit: snap from the Canon Q1 Report)