Canon revising profit down 20%

According to Nikkei Canon is expected to announce that profit numbers for fiscal 2019 will be revised downwards by 20%.

Shrinking digital camera market, and also a deterioration of the semiconductor market because fewer smartphones are being sold have apparently hit Canon hard.  Canon Medical which they purchased from Toshiba is doing well, and profits are expected to increase in the second half of 2019.

Canon states;

After summer, we will introduce new lenses of mirrorless cameras that continue to grow and aim for reversion. Sales of color MFPs launched in January 19 also grow. Four new businesses, which are positioned as the next growth pillars such as medical equipment and surveillance cameras, are solid, and surveillance cameras are expected to grow by more than 10%. Sales of new businesses are expected to exceed 25% (23% in the previous year) overall.

This should come as no surprise, the CIPA data we are seeing out of this year is shockingly bad.  While the smaller vendors may not feel the brunt of the slippage of sales, Canon and to some extent, Nikon as well, will get hit the worst.

The disruption of the DSLR market with the release of the RF mount must have caught Canon by surprise.   That combined with heightened competition from other vendors was a double whammy to Canon sales.  It will be interesting to watch how aggressive Canon is over the next year to regain sales, and possibly lost marketshare.

Canon's financials are expected to be released on the April 24th.

via PhotoRumors