Canon Cinema Business shows 17% Drop in Sales
Canon Cinema Business shows 17% Drop in Sales

Canon Cinema Business shows 17% Drop in Sales

2019-05-06
2 mins read

Canon has published its first quarter financial results for 2019. It appears that the mirrorless business is doing well thanks to the transformation to EOS R from DSLR. However, there is a significant decline in the Canon Cinema business with a 17% drop in sales.

Canon Cinema: 17% Drop in Sales
Canon Cinema: 17% Drop in Sales

Saved by the EOS R

According to the report, Canon maintained the top share of the overall interchangeable-lens digital camera market. Sales growth for mirrorless cameras was higher than the market average, thanks to such models as the EOS R, equipped with a full-frame sensor. However, unit sales decreased overall compared with the same period of the previous year, mainly due to the more rapid decrease in demand than expected resulting from both the shrinking market and the slowdown of the Chinese economy.

Canon mirrorless camera
Saved by the mirrorless: Canon mirrorless camera – EOS R

Canon maintained the top share of the overall interchangeable-lens digital camera market

DSLR market declines due to smartphones

According to the report, the DSLR market construction is continued in step with the proliferation of smartphones, resulting in a significant decrease in sales and profits. Canon claims that the habit of capturing images with smartphones with improved cameras has become a part of the daily lives of consumers, resulting in replacing entry-level DSLRs with high-end smartphones. 

 First quarter financial results for 2019: Imaging system- Cameras
First quarter financial results for 2019: Imaging system- Cameras: Click for larger view

DSLR market construction is continued in step with the proliferation of smartphones, resulting in a significant decrease in sales and profits

The Cinema business

It’s important to note that broadcast equipment, cinema cameras and other B2B type businesses that were previously included in Imaging System financial results section, have from this year been reclassified and are now included in Industry & Others category.

 First quarter financial results for 2019: Cinema business
First quarter financial results for 2019: Cinema business: Click for larger view

The Q1 2019 financial results indicate on 17.1% reduction on sales as follows: Japan: -15.3%, Europe: -8.3%, Asia: -36.3% and Americas: +17.4%. This data shows a significant drop in sales, especially in Asia. The report hasn’t offered any explanation for this decline. We can only assume that this reduction has resulted from the elevation of competition derived from other market alternatives in the cinema segment like Panasonic, Blackmagic, and Kinefinity which gains popularity, especially in Asia.

The alternatives: Kinefinity and Blackmagic URSA Mini Pro
The alternatives: Kinefinity and Blackmagic URSA Mini Pro

The Q1 2019 financial results indicate on 17.1% reduction on cinema cameras sales as follows: Japan: -15.3%, Europe: -8.3%, Asia: -36.3% and Americas: +17.4%

Future plans

Canon plans to release six new models of RF lenses within 2019. Regarding full frame sensors among mirrorless models, Canon promises to improve the “product mix” of R System products. The question remains what about the Cinema Cameras lineup? We all remember Canon USA tweet about 10bit 4:2:2 on the C200. Unfortunately, there is no sign for that nor any progress on the horizon. However, things can change immediately with a simple firmware update.

Canon's flagship C700 and the C300
Canon’s flagship C700 and the C300

We all remember Canon USA tweet about 10bit 4:2:2 on the C200. Unfortunately, there is no sign for that nor any progress on the horizon

Summary

Canon has seen better days. Maybe it’s time to focus more on the cinema camera business. It appears that Canon put a lot of effort into the cinema lenses market (Sumire series). However, the cinema cameras lineups have to be refurbished and undergo some renovation. Canon offered a $5,000 discount on its flagship (C700 super 35), but it might be too little too late. The C300 is a praised camera but also need to be developed further (8K anyone?). Anyway, 2019 and 2020 are supposed to be the years of innovation. Otherwise, professional filmmakers will choose alternatives.

Do you agree with this forecast? Comment below!

Yossy is a filmmaker who specializes mainly in action sports cinematography. Yossy also lectures about the art of independent filmmaking in leading educational institutes, academic programs, and festivals, and his independent films have garnered international awards and recognition.
Yossy is the founder of Y.M.Cinema Magazine.

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