Canon Imaging Profits Down Over 50% in Q3/2019

Canon Imaging Profits Down Over 50% in Q3/2019

Canon recently released their Q3/2019 financial report, which shows a stark downturn, with sales down 13.9% and profits down 56.8% in the imaging division from Q3/2018. 

The report, released yesterday, details that sales of Canon's interchangeable lens digital cameras continued to decrease as compared to Q3/2018, owing largely to the seemingly ever-decreasing market demand, particularly as things like cell phones continue to overtake low-level cameras. Nonetheless, mirrorless camera sales increased, perhaps unsurprisingly, given that the EOS R, the company's first professional, full frame digital cameras, was released in October of last year. Canon also attributes "intensifying price competition" to the downturn and notes that it intends to right the ship through "accelerate[d] sales of higher-end products through lens lineup enhancement" and increased sales promotions. Nonetheless, the company expects an approximately 20% overall decrease in total cameras sales over the entirety of 2019 as compared to 2018. With several interesting cameras likely in advanced stages of development along with their initiative to continue to expand their mirrorless lens lineup, which already contains some very optically impressive glass, it will be interesting to see how the company fares in the coming year, especially as the competition in the mirrorless market shows so signs of letting up. 

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Deleted Account's picture

That's a catastrophic rate of decrease in profitability. There are articles about whether the DSLR is terminal; I think the question must become 'will camera manufacturers survive?'

It is interesting though, people talk about phones replacing camera sales (which is valid), but they rarely talk about the fact camera tech is mature and there are increasingly diminishing returns from purchasing a new camera - I imagine my next camera purchase will be my last (unless it fails).

Ryan Cooper's picture

I think the industry will definitely contract but won't disappear. Makers are at the same crossroads that companies like Kodak faced 20 years ago. They need to innovate and evolve or fall. As sales have decreased, many of the makers such as Canon and Nikon have remained fairly stagnant. Iterative updates often with price hikes.

They need to figure out what they can offer in a digital camera that a phone cannot and double down on that. They also need to figure out a way to bring costs down because I think the high price of a lot of photo gear is driving away hobbyist dollars.

David Pavlich's picture

Canon as a company will do just fine. How well their camera division does is another story. They'll get a bump with the 1DxIII and when they FINALLY produce a pro body mirrorless, but will it be enough?

Nick Papadopoulos's picture

The camera tech is far from mature. It turns a blind eye to proper software. If you compare even the most basic of camera apps the native one, on phones, it can do things in software, no dslr/mirrorless camera can. If a camera manufacturer marries an iphone sized touch screen slapped on the back of a mirrorless (like blackmagic pocket but with better software), including machine learning, app support, metadata entry etc, there is much room for improvement there. Even allow for HDR Bracket merging, or pano photo stitching in camera

Deleted Account's picture

Will any of that improve image quality in the same way the difference between a D100 and D300 did?

Kurt Hummel's picture

I’ve put on hold buying anymore EF lenses and I’m waiting for the 5dsr replacement for my next body purchase. I don’t know if it will be a dslr or mirrorless, probably mirrorless but until it’s announced I’m just waiting and I’m sure others are also doing similar before next upgrade.

Ryan Davis's picture

I'm in exactly the same situation, but at this point I'm not sure if the "replacement" for the 5dsr will even be a canon.

EL PIC's picture

This is why the GearHead Scam of photo selling continues with mirrorless and MP.
It’s all about their profits .. Wake Up GearHeads !!

maybe they should offer what the customer is asking for. simplify the line up and consolidate increases profits. but why the anger ?

EL PIC's picture

Gearhead Brains

companies who dont adapt to customer demand will die, its as simple as that.

I purposely didn't buy a canon because of their sponsorship of YouTuber's. Found it shady and just didn't like the hidden ads for their products like 'most underrated camera of 2019' stuff like that.

Kurt Hummel's picture

You must’ve bought a Pentax then since they are the only ones who don’t do sponsorships with YouTubers.

I'm not surprised. I'm a Canon user...for now...but let's face it, they haven't kept up.

They are working on a new 1Dx, ready for release next year. Of course they have had a dip in profits - no major camera body release this year. And, apparently the new Canon will blow the A9 out of the water, so keep your eyes peeled!

Deleted Account's picture

Not being a shareholder, not my issue.

C Fisher's picture

Stop wasting money on all that IVY crap nobody wants 😅

Finical article on photo site seem to be complete gardage and fear mongering if they went through the trouble of googling the stock price they would see no one who invests in these companies as this being news since they all have had a steady stock price since they crashed in 2008ish because of smart phones