Canon has unveiled its financial results for the third quarter of 2014, revealing that it is still making a profit amid an extended slump in digital camera sales.
There is no secret that digital camera sales are decreasing. Multiple digital imaging companies are reporting that they are not doing well when it comes to sales, especially in the compact camera segment.
Usually, the companies are putting the blame on economical factors in the US, Southeast Asia, and European markets, instead of smartphones and their inability to innovate.
The situation is not different this time, as Canon has reported decreased revenue and profit in Q3 2014, citing “economic stagnation” concerns in Japan and Europe among others.
Canon Q3 2014 financial report is live, both revenue and profit are down
The Japanese manufacturer has revealed a total revenue of 872.2 billion yen / $8 billion during the third quarter of the 2014 fiscal year. The quarter ended on September 30, 2014 with a 4.5% drop in revenue when compared to the same period in 2013.
Furthermore, the net income has decreased to 58.2 billion yen / $534 million, which is exactly 1% smaller than the same period last year.
The Canon Q3 2014 financial report also reveals the fact that the net income per share has increased by 1.47 yen / $0.01 to 52.67 yen / $0.48.
Digital camera sales have dropped due to “economic stagnation”, says Canon
When it comes to camera sales, the company has reported a decrease of 21% year-over-year. Canon says that interchangeable lens camera sales have dropped by 20%, while compact camera sales are down by 22%.
It appears that the market has shrunken in Japan due to the fact that the economy is still struggling to recover. A similar situation is reported when it comes to the US and Europe, but the company still praised the EOS 70D DSLR, whose sales have increased, allowing Canon to remain on top of the market share.
Moreover, the low-end compact camera market is shrinking rapidly, but sales of high-end and superzoom compacts have increased, which has allowed Canon to maintain a high market share in this segment.
Inkjet printer sales have decreased, too, meaning that the Imaging System Business Unit has reported a 9.4% revenue drop down to 315.8 billion yen / $2.89 billion.
What’s next for Canon?
The Japan-based company has unveiled the outlook for the 2014 fiscal year. Canon is expecting to report a 15% decrease in interchangeable lens camera sales for the full year.
Additionally, compact camera sales will decrease by 28% when compared to 2013, meaning that the total drop will stand at 23%. Despite all that, revenue is expected to increase by 0.2%, while net income will grow by 8.5%.
The manufacturer is expected to announce the financial results for 2014 at the end of January 2015.