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.
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 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.
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.
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 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.
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!
