According to a report [partial paywall] from Nikkei Asian Review, Canon is planning to lower its profit forecasts for the 2019 fiscal year by 20 percent — amounting to approximately 50 billion yen — due to shrinking camera sales.
What’s to blame for this downturn? According to Nikkei, the digital camera and semiconductor markets are shrinking due to the increasing capabilities of smartphone cameras. Below is the full translated section of the report:
‘Canon will lower its forecast for the fiscal year ending December 2019. Consolidated operating profit (US GAAP), which indicates the mainstay of the business, is likely to decrease by 20% over the previous fiscal year to just over 270 billion yen. About 50 billion yen lower than the previous forecast. The shrinking of the digital camera market and the deterioration of the semiconductor market due to the functional improvement of smartphones (smartphones) will hit hard.’
This report echoes the drop in global camera sales reported by the Japanese Camera & Imaging Products Association (CIPA) earlier this month.
Articles: Digital Photography Review (dpreview.com)