As we all know, the coronavirus pandemic has been affecting many businesses, big and small, and camera companies are not an exception. In a recent notice, Nikon warned investors of “extraordinary losses” expected due to the current pandemic.
Canon recently released its Q3/2019 financial report and the results are once again pretty bad in the imaging division. The trend of declining sales and profits continues, with a 13.9% decrease in sales and a 56.8% decrease in profits compared to the Q3/2018.
Canon did everything they could to fight the mirrorless advance before finally capitulating with the launch of the EOS R. It seems, though, that it might be a case of too little, too late. According to Canon’s Q2 2019 financial results, their Imaging System department has plummeted 64% compared to this time last year.
While the decline of camera sales is trending across all brands, this is a time when Canon is probably going to be hurting more than most. Canon did predict a big loss, although they remain outwardly optimistic about their future in the mirrorless market,
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.