Canon sees first drop in profits in nine years, Nikon cuts profit forecast

[Headshotzx]

A stronger yen and slower sales of cameras and copiers has led Canon Inc. to predict its first drop in annual profit levels in nine years. Nikon Corp. has lowered its profit forecast as well, also because of the increasing value of the yen against key currencies, plus lower sales of stepper equipment.

Nikon's digital camera sales remain healthy, and the company has bumped up its sales targets for both digital SLR and compact models.

Canon (http://www.reuters.com/article/rbssOfficeEquipment/idUST31520020081027?pageNumber=1&virtualBrandChannel=0)
Nikon (http://www.reuters.com/article/rbssLeisureProducts/idUST23491120081030)

[flipa77]

hopefully canon would release the 5D mark II soon while its still hot item and people have the money. I wonder how many people are canceling the Pre-order

[Headshotzx]

Would there be a chance that the big three (or two) will get into a slight price war over this to gain more sales?

[neilwood32]

Only to be expected given the current market conditions.

I dont see too many people going out and buying high end goods (DSLR is def in that category) so profits will drop.

[AmaTxGuy]

It wasn't as if I didn't try. In the past 2 weeks I have bought a 50d and a 85mm 1.8 lens

[pastanley]

It could be because of the credit crunch. How many people actually buy their photo equipment with a credit card as compared to cash?

[Picture North Carolina]

More to do with the international financial climate than to do with market sector competition between Canon and Nikon.

[Croasdail]

All things considered, not a bad report.

[cyrn]

why isn't the botched 1D3 part of the profit drop? :lol:

And what about the part of letting competitor catch up with a FF D3/D700... a 1- 2 punch on the profit line.

[SK6]

I was about to start a thread about why isn't camera gear coming down in price at all? They're bound to be affected.

[MrKnapp]

I work at a camera shop, Nikon did better this past season due to the fact that they lowered the crap out of their prices, $600.00 off a D700 with the 24-120 kit lens and $300.00 off without, also $300.00 off a D300 body and anywhere from 20 to 50 dollars off point and shoots. Then came the 5D Mark II and it did very very well. Both companies are doing bad right now :rolleyes:

[flyinbrian]

canon an nikon should merge

[Krapo]

canon an nikon should merge

That would certainly not be in our interest!

About price wars, it wouldn't be wise to start one from Canon or Nikon perspective. Price wars only destroy value and profits for the whole industry.
You can start one if your financials are much more solid than those of your competitors, so that you can push them out of the market. But in the long run, new competitors will come in and you'll have the same issue.

[Perry Ge]

^ I think it would be. I would love to see a D700 with an EF mount :D.

[Albedo]

canon an nikon should merge

Yeah, except that would totally kick my (and a lot of other peoples') ass in terms of being able to afford anything...

[DDCSD]

^ I think it would be. I would love to see a D700 with an EF mount :D.

And hopefully you'd be happy enough with that D700 to never want another camera. No competition means no innovation. ;)

[Innocence]

i'd think the profit drops are almost entirely attributed to the strength of the yen and nothing else. doubt prices would drop, rather the contrary. (just a guess though haha). and they would probably also cut production and temporarily shut factories.

[Karl Johnston]

I can see nikon merging with canon if that bastard RED dslr system comes up with a universal mount that actually works

[daleftw]

It could be because of the credit crunch. How many people actually buy their photo equipment with a credit card as compared to cash?
Cash, second hand works best! hahaha Come to think of it the only piece of kit I own that was purchased new was my nifty fifty.

However, the money I paid the guy with was going to new Canon gear.

[GMCPhotographics]

If Canon continue to increase their UK prices (currently most lenses have just jumped 40-50%) then i can see Canon's UK 4th Quarter being quite poor.

[Krapo]

If Canon continue to increase their UK prices (currently most lenses have just jumped 40-50%) then i can see Canon's UK 4th Quarter being quite poor.

Given the rate of the £/euro lately, you can count on some parallel export to the continent :)

[DennisW1]

Notice it says "predicting a drop in profits", which is a HUGE difference from "posted a loss".

In other words, these companies are still making profits, and operating well in the black. Considering the current worldwide economic situation this is almost to be expected, hardly any reason for panic, price wars, or mergers.