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Canon hit by economic crisis

More doom and gloom for the camera market as Canon's profits fall.

|  Industry News
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CanonOne of the world's largest makers of digital cameras has reported a sharp drop in profits.

The company as a whole recorded a 90.9% fall in net profits for the final quarter of 2008 while the camera division finished a little better with operating profits falling by 67.7% for the same period.

Canon have blamed the economic slowdown for the results. The strong Yen also caused profits to fall as this makes Japanese exports more expensive.

It seems the company also expects trading to get even tougher in 2009 and has forecast net profits to be 98 billion Yen a year-on-year decline of 68.3%.

 

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Comments


28 Jan 2009 4:46PM
Or maybe, just maybe, people have become sick and tired of the Canon-Nikon duopoly and have realized that there are a lot of better alternatives out there, at least for the average photographer.

And maybe, just maybe, people are tired of the megapixel race and having to navigate the maze of almost identical models with obscure numbering systems to try to find the best camera for their needs.

Or it could be the annoying pace of new models superseding old ones, sometimes in less than a year. Perhaps people have realized they have a decent enough camera, or can get by with a relatively cheap model, or even a camera phone. Perhaps the realize that they have had plenty of great pictures without the need for this years latest innovations (such as face detection) and that the millions of dollars no doubt spent on such things has not lead to sales as expected.

I love photography, but the digital camera industry is in desperate need of a wake-up call, so I guess that starts here.

I realise that Canon offer fantastic options in the highest levels of the pro space, but how long has it been since they really innovated in the prosumer space? I'm sure it's the prosumer sector that drives the most sales.

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MikeA 15 1.3k England
28 Jan 2009 7:24PM
Welcome to EPZ, I expect your eloquently put sentiments are shared by many others.
cameracat 16 8.6k 61 Norfolk Island
28 Jan 2009 9:36PM

Quote:a lot of better alternatives


Sales figures and in depth reviews tend to disagree, Yeah! there are alternatives, You can drive a Ford Fiesta just as well as a BMW, But they are in different leagues when it come to build quality, And potential service life........Smile


Quote:tired of the megapixel race


What " Mega Pixel " race...? That has not been the case for several years, Or we would be looking at 24 Mp Phones.....Sad


Quote:annoying pace of new models superseding old ones


Yes it's irritating, But hey ho thats progress for you....!


Quote:get by with a relatively cheap model, or even a camera phone


Everyone has the right to buy what ever they can afford, Even if they don't actually need it, I think it's called having a choice, Something everyone does, Irrespective of market forces...!


Quote:desperate need of a wake-up call


Perhaps this sentimant applies to all manafacturing industies, Why single out the camera makers..?


Quote: since they really innovated in the prosumer space? I'm sure it's the prosumer sector that drives the most sales.


So basically you don't give a stuff, So long as they cater for the market you are actually interested in....!!!
29 Jan 2009 2:10AM
Does this mean prices will fall on all dslr's? I was going to upgrade my 5d to the mkII soon but I may leave it for abit to see if there is a price drop.

It is a shame though, I love Canon products but the rate they dish out new models is crazy. Because of the MKII 5D, I'm worried mine will depreciate so fast even though its only 3 years old, I will have to pay a large difference upgrading.
MikeA 15 1.3k England
29 Jan 2009 10:31AM

Quote:So basically you don't give a stuff, So long as they cater for the market you are actually interested in....!!!


Correct.
Kako 13 162
29 Jan 2009 3:07PM
I would disagree with a point camera.cat made above about build quality. Compared to the current Pentax range of DSLRs, both Canon and Nikon offerings at an equivalent price point are positively lightweight. The Pentax cameras feel better built due to their heavier weight, and from what i have read have better weatherproofing too. For this reason, when I get my first DSLR later this year, it will probably be a Pentax despite having a Canon EOS33v at the moment. By mid year i would anticipate being able to pick up an end of line K20 for about 300-350.

Regarding the current price rises, don't be panicked into paying through the nose. Whilst people are still free to buy from either the US or Europe at an opportune moment currency wise, which may only last a day or two at a time- the prices won't get too out of kilter with these other regions- market forces will see to that.
The worst of the economic depression has yet to hit. By mid year prices will probably be 10% lower than they were at christmas, even here on Treasure Island. Consumer electronics/AV/Photo manufacurers and retailers of these products will have to accept a lower profit margin permanently or leave the game altogether. By the end of 2009 some big names in the industry will have gone for good- both manufacturers and retailers.
29 Jan 2009 8:28PM

Quote:Does this mean prices will fall on all dslr's? I was going to upgrade my 5d to the mkII soon but I may leave it for abit to see if there is a price drop.

It is a shame though, I love Canon products but the rate they dish out new models is crazy. Because of the MKII 5D, I'm worried mine will depreciate so fast even though its only 3 years old, I will have to pay a large difference upgrading.



I happily waited for the 450d to come out before buying my 400d knowing the price would come down and that I would be happy with the 400d for years until I can afford to upgrade to a professional model when I have finished my degree. I think the advances in technology, in particular the speed in which they advance, should not make the consumer feel as though they need to upgrade to each model, but to every other model at least, the difference from each consecutive model to another aren't worth the cost of upgrading each time... in my opinion anyway? What do others think?
awmb 13 9
1 Feb 2009 8:45PM
I'm waiting for something to motivate me and drag me out of this not interested gloom. I've had my camera with me for a forthnight and only taken one shot. I thought maybe a new camera. Think I'll hang on and wait for the Pentax to drop. And hope it happens before her washing machine breaks. You know? prioritys and all that.

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