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.
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.
Sony’s report for the 2018 fiscal year is out, and amongst all of the usual mundane facts and figures is one particularly interesting piece of information. It seems that Sony’s share of the interchangeable lens camera market has now surpassed that of Nikon to claim the number 2 spot behind Canon.
Sony is reporting it has 23 per cent of the global interchangeable lens camera market based on revenue, and 24% of the camera market overall, an increase of four percent compared to the 2017 fiscal year.
It looks like Canon’s not the only one hurting this year. Nikon has just published their financial report for this fiscal year, running from April 1, 208 until March 31, 2019. While the company as a whole seems to be on the up, they report a 17.9% reduction in revenue compared to the 2019 fiscal year with a drop in operating profit of 27%.
The Federal Aviation Administration has just released its 20-year forecast predicting what may happen in the world of aviation between now and 2039. It covers a number of topics from international and domestic travel to commercial aircraft and UAVs.
Of particular note is that the commercial drone market appears to be expanding rapidly. In fact, they expect it to triple in size by 2023. They also say that consumer drone demand has “slowed considerably” and that they expect it to continue doing so.
Canon has previously predicted a 50% drop in camera sales over the next two years, and it seems that they might be right according to their latest financial report from Q1 2019. According to the report, they’re already seeing a 23% decline in camera sales from last year, with an 81% drop in operating profit vs Q1 2018.
Sony is taking no prisoners. In their latest mid-term strategy paper, they pledge almost a 1 Trillion Yen (~$9 billion) investment into camera technology over the next three years. The investment is primarily in image sensors, with the goal of becoming the “top brand in the overall camera market” by 2021.
With Canon’s recent announcement to take more than 50% of the interchangeable lens camera market in the next few years, things should get exciting. Given Sony’s rapid growth in the camera market over the last few years, both Canon and Nikon will have an even greater challenge on their hands now.
Well, this is quite the interesting turn of events. Nikon seems to have been struggling the last few years since Sony’s mirrorless domination began. Their latest annual financial report, however, paints a different story. Although overall income was down 4.3%, it shows a whopping 776% increase in profits over the previous 12 month period.
“We will go on the offensive” says Fujio Mitarai, Canon CEO, confirming that Canon are finally taking mirrorless seriously. The focus toward was confirmed by a manager recently, but it really only spoke about the entry-level. Now it looks like Canon is tackling the entire mirrorless market head-on if the slides and speech summary from Canon’s Corporate Strategy Conference anything to go by.