Canon’s profit projections are twice as bad as previously expected, reports Nikkei

Jul 19, 2019

John Aldred

John Aldred is a photographer with over 20 years of experience in the portrait and commercial worlds. He is based in Scotland and has been an early adopter – and occasional beta tester – of almost every digital imaging technology in that time. As well as his creative visual work, John uses 3D printing, electronics and programming to create his own photography and filmmaking tools and consults for a number of brands across the industry.

Canon’s profit projections are twice as bad as previously expected, reports Nikkei

Jul 19, 2019

John Aldred

John Aldred is a photographer with over 20 years of experience in the portrait and commercial worlds. He is based in Scotland and has been an early adopter – and occasional beta tester – of almost every digital imaging technology in that time. As well as his creative visual work, John uses 3D printing, electronics and programming to create his own photography and filmmaking tools and consults for a number of brands across the industry.

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In April, Canon’s Q1 2019 financial report presented a 23% decline in camera sales, with an 81% drop in operating profit vs Q1 2018 and an anticipated 25.8% drop in operating profit across the year as a whole. Now, three months later, Nikkei Asian Review is reporting that the projected figure has now increased to a 40% reduction for the year.

The massive drop in operating profit, they say, is down to “a slowing European economy and slumping chip market”. And the projections are expected to drop further when Canon presents its first-half earnings next week.

Canon’s operating profit is on track to sink 40% this year to slightly over 200 billion yen ($1.85 billion), Nikkei has learned, amid a slowing European economy and slumping chip market.

The Japanese company’s profit for the year ending in December is seen falling roughly 60 billion yen short of its downgraded guidance in April. Sales likely will shrink 6% to a figure above 3.7 trillion yen, off about 100 billion yen from April’s forecast. The full-year projections are expected to be lowered again when Canon presents first-half earnings next week.

The blame for this loss is laid at the feet of the ever reducing camera market, with a worldwide fall of 24% in the first five months of 2019, according to Tokyo’s Camera and Imaging Products Association (CIPA). They report that the blame is also partly to do with the “worsening economic conditions in Europe” and the reduction of the euro’s value against the yen, which they say has caused corporate clients to hold off on investments.

You can check out Nikkei Asian Review’s report for more information, but it looks like Canon has quite the fight on their hands. It’s going to be tough, especially when their goal for 2020 is to have a 50% market share of interchangeable lens cameras. I don’t think throwing IBIS into DSLRs will fix that.

[via Nikkei Asian Review]

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John Aldred

John Aldred

John Aldred is a photographer with over 20 years of experience in the portrait and commercial worlds. He is based in Scotland and has been an early adopter – and occasional beta tester – of almost every digital imaging technology in that time. As well as his creative visual work, John uses 3D printing, electronics and programming to create his own photography and filmmaking tools and consults for a number of brands across the industry.

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21 responses to “Canon’s profit projections are twice as bad as previously expected, reports Nikkei”

  1. Ian Cale Avatar
    Ian Cale

    Make a camera photographers ( not youtubers ) want !!!!!!! That does not require to buy $20,000 in new glass , since the not that old $20,000 in glass is perfectly fine .

  2. Viggo Næss Avatar
    Viggo Næss

    Jesus Christ, this really starts to annoy me, all the sites are regurgitating this one clickbait. Sony is expecting a 45% decrease. And Canon is mostly due to OFFICE SUPPLIES , it has little or nothing to do with the camera department.

    1. Adam Kopf Avatar
      Adam Kopf

      Viggo Næss yeah, the photo divisions are such small parts of both Canon and Sony

  3. Sean Michael VanDeusen Avatar
    Sean Michael VanDeusen

    Canon is definitely taking a hit. No one I know in the photography world uses their cameras anymore. It was always canon as the camera of choice until they started releasing over priced cameras with dated features compared to the competition. Now their dslr camera are attempting to please videographers… but again they are releasing dated features and their videos are poorly and highly compressed. They jumped on 4k video 3 years after it was a standard in 90% of dslrs and mirrorless cameras. Companies like Nikon, Sony and Fugi don’t care if they drop a camera for around $2k that out performs their last year photography camera costing $4k and their dedicated video cameras costing $5k to $10k. They simply release a camera that’s packed with the latest features. Canon also did extremely well during the early indie film era. However groups like magic lantern showed they purposely locked features and did everything they could to prevent further custom firmware updates to enable these features. The canon mark 3 can shoot raw video files at 14 bit. Which destroying the canon C series costing thousands of dollars more that don’t even shoot raw. They were simply the mark 3 with features added like focus peaking and zebras.

    I follow many photographers and watch their videos via YouTube and vimeo. Theres a very few who use canon for photogtaphy and near impossible to find someone who uses them for video these days. Especially with the bmpcc4k, sony a7 series and the fugi xt3. And like I stated earlier the 30 plus photographers friends I do have also ditched canon and I just sold my mark 3 about a month ago for lenses for my current set up.

    I’m not saying they are dying in sales. But I personally dont know anyone who cares for them anymore nor do I know anyone online who uses canon. Peter McKinnon seems to use one for video but he also uses the cameras I listed. So who knows

    1. David Blas Avatar
      David Blas
    2. Sean Michael VanDeusen Avatar
      Sean Michael VanDeusen

      Observation… you’ll live

    3. Chainsaw Charlie Avatar
      Chainsaw Charlie

      If noone is using Canon for photography or video anymore, how comes that Canon holds the biggest chunk of the ILC market?

      Did you watch any sport event lately? Which cameras with white lenses were the most represented on it? Fuji? Sony? Or Canon? Maybe you should check THAT on You Tube and Vimeo.

    4. Guy McLoughlin Avatar
      Guy McLoughlin

      Companies like Nikon, Sony and FujiFilm don’t care if they drop a camera for around $2k that out performs their last year photography camera costing $4k and their dedicated video cameras costing $5k to $10k.

      Panasonic has 4K 10-bit internal recording in both their mirrorless ( for 2.5 years now ) and their newer ENG cameras ( CX350 ) but neither Canon, Nikon, or Sony has this. With Sony you have to buy their FS7 cine camera to get 4K 10-bit internal recording, so it really looks like Sony is dragging their feet to avoid competing with their higher tier cine cameras.

      Same goes for IBIS that can smooth out handheld camera motion. Canon, Nikon, and Sony do not have IBIS that is good enough to stabilize handheld camera motion. Right now Panasonic and Olympus are the only game in town for this.

      Same goes for unlimited recording time. I’ve shot for 12 hours continuously recording 4K 10-bit internally with my GH5 camera, but none of these other camera brands can make it past 30 minutes. ( and Sony has it’s 4K overheating problem when shooting in a hot environment for more than one hour )

  4. Miroslav Vrzala Avatar
    Miroslav Vrzala

    Went to have my sensor cleaned they were pushing to have my shutter changed out at 375$ for a new one since my shutter count was at 150000 clicks.
    I guess they need more $. I said no. Still works.

    1. Nermin Huskić Avatar
      Nermin Huskić

      Miroslav Vrzala GREED

    2. David Sargent Avatar
      David Sargent

      Miroslav Vrzala I certainly don’t find it unreasonable for them to have recommended that. I’ve had two different bodies with their shutter mechanisms die at or below 100,000 clicks. And for what it’s worth, $375 is a very common cost to have that replaced.

  5. Kim Taylor Avatar
    Kim Taylor

    I personally think Canon do now sell over priced, under achieving cameras and that will be their demise. Have always been a Canon shooter, but have seen the light from other manufacturers and will be switching away from them. Bloated prices for little upgrades don’t cut it I am afraid, this is 2019! not 1985. You cannot get away with it anymore,

    1. Aaron March Avatar
      Aaron March

      Kim Taylor 100% Same boat. And I know many shooters who’ve left Canon.

    2. Íris Santos Avatar
      Íris Santos

      What are you switching to, if you don’t mind me asking?

    3. Kim Taylor Avatar
      Kim Taylor

      Íris Santos Not sure for the moment. Until everything starts to settle down with the mirror less situation, I will try to drain every last shot out of my Canon setup, maybe a move to Sony, but time will tell.

  6. Denis Trudeau Avatar
    Denis Trudeau

    Canon will still be a good photocopy machine company ???

  7. Kenth Hagström Avatar
    Kenth Hagström

    Well, I’ve already switched to another brand. And I also know others who also switched brand. Canon have more problems than they are realizing.

    1. Viggo Næss Avatar
      Viggo Næss

      Kenth, yeeesh, people in the comment section has more knowledge than inside with Canon?

    2. Kenth Hagström Avatar
      Kenth Hagström

      of course, where else can I be king ?

  8. Tom Connor Avatar
    Tom Connor

    I’ve been disappointed by Canon recently. Their prices are extortionate, but the build quality is a lot lower than it used to be.
    My 3 year old £1800 ($2250) 24-70 2.8 mk2 went for repair after it developed an issue causing motion blur at wide f stops.
    It’s apparently wear and they want £900 ($1125) to fix it. Half of that is apparently an autofocus motor issue which wasn’t there before it went in.
    Meanwhile my 10 year old 24-70 2.8 mk1 is still going strong after a LOT of use and abuse.

    1. Benjamin Stolle Avatar
      Benjamin Stolle

      Tom Connor same here. I have dust in my half year old 85mm L 1.4 and canon means „that can happen“ and i should pay 230€ to clean it. My 3 years old, second hand 135mm L is clean and has nothing.