In a Q&A document attached to its Q2 2022 financial results, Canon responds to a question about the future of the camera market by saying that it believes it “has largely bottomed out at its current scale.” “.
Canon has answered quite openly to a series of questions regarding the financial stability of many sectors, but its responses to questions about the state of the camera industry have been particularly frank.
The company was asked about its outlook for the future camera market and whether it will continue to offer both mirrorless and DSLR cameras. To that, the company responded:
“The camera market has largely bottomed out at its current size. In the future, we expect the professional amateur and high-end amateur segment to expand further and the products to become more developed. Accordingly, we expect the overall market to grow from now on. As for DSLR cameras, we will continue to supply the product as long as there is demand.”
Canon seems to be arguing here that the industry’s steady decline, including its own losses, has finally bottomed out and it couldn’t get any worse for camera makers than it does. with the present. The company has also realized that beginner and amateur photographers are not looking for companies like them or their competitors to provide solutions for digital images, which are likely to Leave that to smartphones. So while shipments are at an all-time low, sales can still rise.
Related, but found in a separate document, Canon addressed the question of a decline in profits for the imaging division due to the closure of a factory and was asked to explain the closure and its impact. its finances.
“We decided to close a manufacturing facility in China, which mainly produces compact cameras, as it becomes increasingly difficult to continue operations due to the shrinking market,” Canon said. “We do not disclose the exact amount of the financial impact, but excluding special factors, we believe profits will increase.”
This statement links up with the previous statement in that it shows that Canon has essentially faced a loss of the low end of the market. But because the company is focusing its efforts on the higher-end line and eliminating the costs associated with producing lower-end cameras that the market isn’t buying, the company has been able to return to profitability.
The camera industry has been in decline for several difficult years as a result of the contract sales market as well as the COVID-19 pandemic. But based on Canon’s statements, the company seems to believe that the worst is now behind it and it is now set to be financially active in the future.
Image credits: Title photo licensed via Depositphotos.