# Canon Camera Sales Down in Q2, Imaging Revenue Up



## Canon Rumors Guy (Jul 27, 2013)

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<p><strong>Smartphones to blame?</strong>

Canon sold 19% fewer digital cameras worldwide in the second quarter of 2013, compared to the same period last year – with demand for interchangeable-lens cameras falling 4%. However, Canon’s global imaging division sales revenue climbed 4.4%….</p>
<p>Sales of Canon compact cameras fell 26% worldwide from April-June 2013 in volume terms (year-on-year) but demand for the EOS 5D Mark III and EOS 6D DSLRs continued to grow and the EOS 700D ‘proved popular’ in Japan over the three months.</p>
<p><a href="http://www.amateurphotographer.co.uk/photo-news/539870/canon-uk-boasts-number-one-spot-but-demand-dips-worldwide" target="_blank"><strong>Read More at Amateur Photographer</strong></a></p>
<p><strong><span style="color: #ff0000;">c</span>r</strong></p>
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## Ellen Schmidtee (Jul 27, 2013)

Canon Rumors said:


> Canon sold 19% fewer digital cameras worldwide in the second quarter of 2013, compared to the same period last year – with demand for interchangeable-lens cameras falling 4%. However, Canon’s global imaging division sales revenue climbed 4.4%….



Sales plummet, While revenue climbs. I'd wager high prices explain both.


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## docsmith (Jul 27, 2013)

Not necessarily higher prices on the same unit...but higher priced units had their sales grow. The 5DIII and 6D grew. You can make up the loss of a lot of $150 P&S cameras by selling a $2,000 6D or a $3,100 5DIII. Total revenue from cameras only rose 0.8%. Revenue from inkjet printers rose 17%. 

Article says they are blaming economic slow downs in Europe and China.


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## whothafunk (Jul 27, 2013)

their sales went down because they dont have anything smart to offer to consumers. 100d, 700d, 60d? same old technology, nothing new. 70d will probably change that, but 2-3 months before it gets to store? absolute bollocks

canon, nikon, sony,.. most profit comes from entry level dslrs.


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## jrista (Jul 27, 2013)

whothafunk said:


> their sales went down because they dont have anything smart to offer to consumers. 100d, 700d, 60d? same old technology, nothing new. 70d will probably change that, but 2-3 months before it gets to store? absolute bollocks
> 
> canon, nikon, sony,.. most profit comes from entry level dslrs.



Everyone I know recently has purchased a Canon entry level camera. A lot particularly like the small-ish size of the 100D, one purchased the 60Da for astrophotography. Not a single one purchased a Nikon or a Sony. The one guy I do know who purchased a Nikon in the last year bought a D800 for his professional portraiture.

I agree that a significant portion of profit generally comes from the higher volume items that sell like hotcakes to the massive consumer sector...however I don't believe that primarily means Canon is not selling entry-level products. 

I do believe the economy factors in here. It may seem like we have "recovered", but the fundamental issues that caused financial markets to crash five years ago are still in place. They are just glossed over, hidden, ignored, or otherwise skirted around by any and all parties who have the power to actually change something. Until that underlying fact changes *for real*, I think people are going to keep a tight watch on their pocket books. That doesn't mean people in general (and I don't just mean the US, but in general for any moderately large or larger economy) will stop spending entirely...just that they will continue to be more careful with their purchases. 

Just look at the PC market...it used to race...people would upgrade their computers every couple of years. Now? People are content to save $1000, $1500, $2500 and keep using their current PC, and augment it with a tablet or a phone that only costs $400, $600, $800 instead. People on a mass scale won't regularly start buying PCs to replace their existing ones, or buy more expensive cameras, or more expensive lenses, etc. on a regular basis again until the underlying economic force that is subtly telling them to save their money truly changes for the better.


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## David Hull (Jul 27, 2013)

Karlos said:


> now let us wait for nikon and sony numbers......



In the past when Canon coughed, it was a sign that the whole industry had a cold. You will probably see similar results from the others, particularly Sony whose entire consumer electronics business seems to be in the financial “hurt locker” anyway.


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## Jon Gilchrist (Jul 27, 2013)

Maybe if they had something I wanted to buy. There hasn't been anything new and available in the higher end crop body market in 3 years. I have two 60Ds that need replacing, but there's nothing to replace them with.


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## unfocused (Jul 27, 2013)

Quite a bit of news coverage on this is available. General consensus is that sales in China and Europe are not hitting their marks. Europe due to ongoing sluggish economy. China do to a tightening of monetary policies. 

Canon upped their projections earlier in the year when the Yen was devalued. So, this may just be another correction due to international economic conditions. Canon was apparently counting on stronger high-end DSLR sales in China, that aren't going to materialize due to China's tightening the money supply.

All in all, not good, but apparently not entirely unexpected and Canon is still outperforming its competitors according to several stories.


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## Zv (Jul 27, 2013)

Well no wonder, this time last year the 5DIII was still new and hot on the market. What do we have now? Cut price EOS M? Still waiting for 70D, no sign of 7DII and some speculation about a 80MP camera. Obviously their digital camera sales are lower this quarter!


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## blacksap (Jul 27, 2013)

Keep adding no significant upgrades to your cameras and this is what happens canon, the evolution from t4i to t5i is inexistent.


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## David Hull (Jul 27, 2013)

blacksap said:


> Keep adding no significant upgrades to your cameras and this is what happens canon, the evolution from t4i to t5i is inexistent.



What "significant" upgrades could they add? 

It seems like they have done quite a bit. The AF in the 5DIII was a pretty significant upgrade over that of the 5DII. The new sensor in the 70D is pretty innovative.


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## Etienne (Jul 27, 2013)

Eventhough I have a 5DIII and a EOS-M, I'm pretty excited to see the new 70D, and hopefully a mirrorless with the same sensor. If this new sensor lives up to the marketing claims, it could push up sales quite a bit.

Canon .... Please put a swivel screen in the next mirrorless


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## David Hull (Jul 27, 2013)

ankorwatt said:


> David Hull said:
> 
> 
> > blacksap said:
> ...



Works fine for me at 2.8 on the lenses I have. However (as we should ALL know): 1. the DOF is shorter at 2.8 so issues are more pronounced. 2. The AF is a machine which is not necessarily perfect (and probably should not be expected to be so).

And… lastly, my previous experience was the 5DII over which the 5DIII represents a pretty dramatic improvement (in almost all areas).

What I see in the last few years is that the DSLR has become a commodity product at each level with the two main competitors (Nikon / Canon) struggling to differentiate themselves from one another in any way possible and the third one, Sony is struggling to get their foot in the door. I don’t think that the market share has shifted too much in the last few years.


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## Mt Spokane Photography (Jul 27, 2013)

Point and shoot camera sales have dropped almost 50% over last year, and they also dropped a lot last year, and DSLR's have dropped 15%. These are industry wide numbers, so it sounds like Canon may be doing better than the industry overall.

Imaging covers a lot more than cameras and lenses, so industrial products may be selling well.

Here is a link to the overall camera sales.(all CIPA members)

http://www.cipa.jp/english/data/pdf/d-201305_e.pdf


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## distant.star (Jul 27, 2013)

.
Too bad we can't get these kinds of numbers weekly. That would really keep up the chatter!


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## boggy4062 (Jul 27, 2013)

Well, the real question is not the phones, but competitors. What happened to the sales of Sony, Fujifilm,Olympus... From what I can tell, mirror-less cameras are selling like hotcakes, and where is Canon or Nikon in that market space?

Nowhere, I dare to say.

Overpriced and/or under-preforming 1-2 units do not make the right impression. Some professionals are already moving away from DSLR's. NEX-7, X100S, X-Pro 1... are serious making inroads, whether big boys like it or not. I LOVE my second generation NEX-5N from Sony, Yes, the 7D is still my to-go camera, with its lens and flash light support. However, who knows what Sony or Fujifilm is gonna bring in a year or less. 

And now, with Nokia revealing 41 Megapixel 1020 phone? The news will only get worse, IMHO.


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## lopicma (Jul 27, 2013)

It would be interesting to see other companies numbers or a breakdown on camera types overall... P&S, DSLR, MFT, Mirror-less... etc.


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## Sabaki (Jul 27, 2013)

I'd be interested to know how the higher prices of the new kit has affected Canon's bottom line, especially relating to how foreign markets supplement their profit. 

Example: Canon South Africa is a satellite nation for Canon Europe/UK. If a lens is priced at say £1500, that relates to R25000 in South Africa. 

As the Middle East & Africa zone accounts for roughly 35% of Canon Europe's income, could the higher prices be affecting their bottom line?


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## stewy (Jul 27, 2013)

Well, I just bought myself a 5D3 which now makes my 2nd DSLR; first was the 40D. My 40D is now my backup camera. Got it on that last eBay deal for ~$2500.


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## coreyhkh (Jul 27, 2013)

maybe everyone is waiting for the 7Dmkii


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## blacksap (Jul 28, 2013)

David Hull said:


> ankorwatt said:
> 
> 
> > David Hull said:
> ...



I´m sorry I don´t know if I read correctly, but the article says the sales went down on lower end models, I have a 5DMKIII, and I am very pleased, waiting for the 70d, I am talking about consumer level cameras, the T3i,4i,t5i level. 

And I do believe that all modern companies keep their products a step down so they have good reasons to release the newer version (except maybe for the GH series on panasonic), but this is part of marketing.


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## MLfan3 (Jul 28, 2013)

David Hull said:


> Karlos said:
> 
> 
> > now let us wait for nikon and sony numbers......
> ...



actually Sony is almost half bankrupted company and I think it will go bankrupt in a few years unless it decides to quit the A mount.

I am really hoping Sony to wake up soon and concentrate all its imaging R and D money in to the E mount before it's too late, the RX-1 is a temporal hit for them but it won't make any money in the long run.
Full frame NEX is the only thing give them some meaningful success in this game.


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## MLfan3 (Jul 28, 2013)

jrista said:


> whothafunk said:
> 
> 
> > their sales went down because they dont have anything smart to offer to consumers. 100d, 700d, 60d? same old technology, nothing new. 70d will probably change that, but 2-3 months before it gets to store? absolute bollocks
> ...



by any means , Nikon is doing it much worse , too many people ditch their Nikon FX to go Canon or Sony last year desite of much over hyped D800 and E,which I still own.

the D800 series had too many real life usability issues and maybe the sensor is great it hasn't helped Nikon in sales.
the D600 has actually helped it but it also had a lot of design flaws, and that forced many many Nikon users(not fans) to see the light.
and some of us added Canons, or Sonys or something else , or just moved away from Nikon because of its terrible QC and some hugely hurting design flaws in the D600 and D800 bodies.


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## MLfan3 (Jul 28, 2013)

David Hull said:


> blacksap said:
> 
> 
> > Keep adding no significant upgrades to your cameras and this is what happens canon, the evolution from t4i to t5i is inexistent.
> ...



the 70 D to me is a revolutionary product , rather than an innovative one.


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## MLfan3 (Jul 28, 2013)

ankorwatt said:


> David Hull said:
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> > blacksap said:
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it is interesting( at least to some) because it is the very very first step to produce a pro level mirrorless system camera, with really usable AF for both still and motion.
I think we will see a 5D class of body uses this tech sooner than we expect , and this tech simultaneously improves sensor DR and structural design.


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## c.d.embrey (Jul 28, 2013)

boggy4062 said:


> From what I can tell, mirror-less cameras are selling like hotcakes, and where is Canon or Nikon in that market space?


It all depends on where you live. In SoCal the Sony NEX is easy to buy (Sony Stores), A few camera stores have a few Fuji X, Olympus and Panasonic are special order from most stores.

Here's something Thom Hogan posted a while back: *"I've tried to point out that things weren't quite so wonderful in terms of mirrorless camera sales before, and some of you haven't believed me."* CIPA shipment numbers for both Mirrorless and DSLRs http://www.sansmirror.com/newsviews/april-2013/mirrorless-shipments-down.html

From what little I've seen is some Pros are switching from DSLRs to mirrorless, but not many consumers. Me. I've taken ALL my SLRs (both film and digital) off of my Business Insurance. I'll be renting cameras by the job, ie what ever is the right tool (Canon 5D3, Nikon D800, Panasonic GH3, MFD). Hopefully someone will release a camera (and lenses) that I want to buy before the year is out.


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## UrbanVoyeur (Jul 28, 2013)

I think Canon is losing sales to competitors with less expensive, higher res, better performing sensors and better equipped camera in both the mirror less and SLR markets. 

After more than a year, Canon still does not have a 30+ MP answer to Sony/Nikon. And while sharp, their L lenses are horrendously expensive and losing the innovation race to Sigma and Niko with their upgradeable firmware.

I'm not saying Canon is ******* or anything, but they are slipping.


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## neuroanatomist (Jul 28, 2013)

UrbanVoyeur said:


> I'm not saying Canon is ******* or anything, but they are slipping.



Doesn the dSLR market share breakdown support that assertion?


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## gmrza (Jul 29, 2013)

jrista said:


> Just look at the PC market...it used to race...people would upgrade their computers every couple of years. Now? People are content to save $1000, $1500, $2500 and keep using their current PC, and augment it with a tablet or a phone that only costs $400, $600, $800 instead. People on a mass scale won't regularly start buying PCs to replace their existing ones, or buy more expensive cameras, or more expensive lenses, etc. on a regular basis again until the underlying economic force that is subtly telling them to save their money truly changes for the better.



I think there is also an element of technology maturing - as you put it. The last time I bought a compact camera was 4 years ago (a G11). The G15 hasn't seen a huge increase in performance over the G11. The main reason I now have to replace my current compact is that it is wearing out, not that there is something that much astoundingly better than it.

For landscapes, I tend to reach for the 5DII - it's just as good as the 5DIII for that kind of purpose.

(FWIW, I am still using a 6 year old notebook for some stuff like email and web browsing...)


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## jrista (Jul 29, 2013)

gmrza said:


> jrista said:
> 
> 
> > Just look at the PC market...it used to race...people would upgrade their computers every couple of years. Now? People are content to save $1000, $1500, $2500 and keep using their current PC, and augment it with a tablet or a phone that only costs $400, $600, $800 instead. People on a mass scale won't regularly start buying PCs to replace their existing ones, or buy more expensive cameras, or more expensive lenses, etc. on a regular basis again until the underlying economic force that is subtly telling them to save their money truly changes for the better.
> ...



Aye, there is that, too. Technology still moves on, but in some areas its about as good as it is going to get, with the exception of continued improvements in speed, I imagine. 

One would also have to figure that many technology markets become saturated. Millions of people own PCs. At least as many millions of people own compact cameras, if not considerably more. Billions of people own cell phones with cameras. Unless someone finds massive new groups of consumers somewhere, I suspect a lot of existing markets will begin to slow down until something revolutionary is discovered or refined and brought to market (maybe something like lightfield photography).


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## gmrza (Jul 29, 2013)

jrista said:


> One would also have to figure that many technology markets become saturated. Millions of people own PCs. At least as many millions of people own compact cameras, if not considerably more. Billions of people own cell phones with cameras. Unless someone finds massive new groups of consumers somewhere, I suspect a lot of existing markets will begin to slow down until something revolutionary is discovered or refined and brought to market (maybe something like lightfield photography).



That is exactly it. The first digital cameras we all bought were not up to the tasks we wanted to put them to. Now we are in a position where the technology is good enough for the use cases most of us have. - For instance, for most of portrait work, you don't need anything better than a 5DII - unless you need output to a very large format, or you need a lot of dynamic range (as two examples where you might need something better). For the most part, most DSLRs are now outperforming 35mm SLRs, and have eaten a good part of medium format's lunch.

The same applies to compact cameras - their output is better than any film compact ever produced, and more than good enough for most consumers. Heck - phones are producing better photos man film compacts could!

For the most part, digital photography technology is "good enough" and the main reason to upgrade is now for many people only the need to replace a broken, lost or stolen item.

As you rightly point out - camera manufacturers need something disruptive to drive the market back to what it was for the first 10 to 12 years of this century.


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## fvaron (Jul 29, 2013)

Zv said:


> Well no wonder, this time last year the 5DIII was still new and hot on the market. What do we have now? Cut price EOS M? Still waiting for 70D, no sign of 7DII and some speculation about a 80MP camera. Obviously their digital camera sales are lower this quarter!



I was not surprised at all due to economic factors and making the "prosumers" wait for them to take forever in rolling out a new product.


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## RGF (Jul 29, 2013)

Smart phones are saturating the market. People don't care about image quality - 40+MP smart phone. What type of IQ will you get? Wait a few years, cameras will make a come back, especially when someone marries a smart phone with a quality P&S.


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## jrista (Jul 30, 2013)

RGF said:


> Smart phones are saturating the market. People don't care about image quality - 40+MP smart phone. What type of IQ will you get?



When it is downsampled to a quarter of that, it actually gets you quite a lot. In Pro photography mode, the Lumia 1020 allows you to zoom and crop as well, and while it is not quite on par with APS-C or FF DSLR IQ, neither is it bad. 



RGF said:


> Wait a few years, cameras will make a come back, especially when someone marries a smart phone with a quality P&S.



From what I've been reading the last few months, the increase in phones with decent cameras has actually spurred an increase in demand for DSLR and high end mirrorless cameras in established markets. Analysts suspect that there is some kind of IQ conversion factor, where people figure out they enjoy photography by using their phones, and want more.

I think the Lumia is getting pretty close to a marriage between a P&S and a Smart Phone. It has Xenon flash, a six-element Zeiss lens with optical image stabilization, a high resolution sensor that produces some very good IQ for what it is (best in the business as far as smart phone cameras go, manufactured with the latest technology that...as far as the technology itself goes, far outpaces anything Canon produces as of yet), as well as a host of photography related accessories and professional grade photography software (i.e. total control of all the same exposure factors as you can on a DSLR or Mirrorless).


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## Mt Spokane Photography (Jul 30, 2013)

MLfan3 said:


> David Hull said:
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> > Karlos said:
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Sony is hurting due to their TV and phone sales. Cameras are doing well for them, as are sales of sensors.


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## J.R. (Jul 30, 2013)

Mt Spokane Photography said:


> MLfan3 said:
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> > David Hull said:
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Is this information available in the public domain? I remember seeing the Sony annual report combining the imaging and a number of other electronic products into a single segment.


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## jrista (Jul 31, 2013)

J.R. said:


> Mt Spokane Photography said:
> 
> 
> > MLfan3 said:
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Ditto...last I read, Sony's "electronics" division (which includes IC manufacture and cameras) was losing ~8-9 billion a year, and that they were primarily making money selling insurance policies...


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## theyapici (Jul 31, 2013)

smartphones broke down compackt cameras sales looks like s4


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## mjbehnke (Jul 31, 2013)

Yes, you are correct, Sony makes most of it's money by selling insurance. Here's that article regarding the electronics division, which does not do well and looses money on everything they sell.

http://www.nytimes.com/2013/05/28/business/global/sonys-bread-and-butter-its-not-electronics.html?pagewanted=all&_r=0

Matthew


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## Aglet (Aug 3, 2013)

MLfan3 said:


> the D800 series had too many real life usability issues..



I'd love to know what these are, just so I might avoid running into them.
I don't have to rely on my d800/e to make a living, I like using them because they get me the shot I want with a more maleable raw file than anything else. So I'm very curious about what you find to be, "real life usability issues." IMO, they're the least-compromised and most affordable high quality imaging machine available for _my_ needs.



MLfan3 said:


> ..moved away from Nikon because of its terrible QC and some hugely hurting design flaws in the D600 and D800 bodies.



I think all mfrs have had their share of QC issues, perhaps Nikon a bit more visibly so lately, but I've had nothing worse than one oil droplet show up on a d800's sensor and the d5100's do regularly vex me with misaligned mirrors that cause tilted shots compared to the viewfinder yet some people will say that's nitpicking. I don't like the d600's merely because of how they (don't) fit my hand.
I've not had any AF or other issues in my early model d800s; they work so well they make me smile when I use them.


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## jrista (Aug 3, 2013)

Aglet said:


> MLfan3 said:
> 
> 
> > the D800 series had too many real life usability issues..
> ...



It is true that all manufacturers have their design and QC issues. The 1D III had more than its fair share of AF issues, and even after several firmware updates, they persisted. Early on, it was difficult to get Canon to recognize the issue, too...but once they did, their support for customers experiencing the issues was excellent. 

It seems even after Nikon finally and begrudgingly acknowledged the issues with the D800 and D600, they still made their customers jump through hoop after hoop after hoop to get things fixed. From all the things I read, it was either that Nikon did not really want to admit they had issues, or maybe it was more along the lines of the left hand did not know what the right hand was doing (internal communication problems?) Either way, it seems the customer support issue with Nikon in recent years has been terrible.

I've had to work with Canon on a few things over the last four years, and every single incident was a smooth, easy, simple experience, with rapid turnaround. That seems to be the general consensus as well...that Canon support is superb (they keep winning awards for it year after year.) Making a brand choice comes down to more than hardware offerings, hardware quality, etc.


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## Aglet (Aug 3, 2013)

jrista said:


> ..Making a brand choice comes down to more than hardware offerings, hardware quality, etc.



While that's true I don't make a purchasing choice based primarily on how something is likely to fail and be repaired.
I need results more than some sense of long term security so I can afford to choose accordingly.

I've also had good experiences with Canon when it comes to service and support. (Tho they asked me to keep quiet when I found a significant bug in their DPP software)

I've also had good experience with Nikon service and support, altho they had to finally acknowledge that they could not fix the d5100's tilt issue. (module replacement only, no fine adjustment possible)

I'm still interested in what sort of real-world limitations the D800 may have that some people have hinted at but not substantiated. I haven't found any in my use of them. There was only a learning curve of getting used to how they do some things differently.


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## jrista (Aug 3, 2013)

Aglet said:


> jrista said:
> 
> 
> > ..Making a brand choice comes down to more than hardware offerings, hardware quality, etc.
> ...



Hmm, interesting that you would say you need results. What happens when your camera DOES stop functioning, and results are impossible? 

It may not be the most important thing to you specifically, but I think in general, not just when it comes to cameras but when it comes to most things, people prefer a company that will not only stand by their product, but step up and fix issues, without introducing a lot of hassle, when something does happen. Canon won the professionals heart in the 80's with their AF. For a long time, they were the best AF game in town. Today, Nikon has definitely caught up, and at times surpassed Canon's AF performance. They do offer better IQ in a few models as well. But professionals still overwhelmingly shoot Canon. I can't imagine that the quality, responsiveness, and low hassle of their support doesn't play any role at all. 



Aglet said:


> I'm still interested in what sort of real-world limitations the D800 may have that some people have hinted at but not substantiated. I haven't found any in my use of them. There was only a learning curve of getting used to how they do some things differently.



I wouldn't haul a D800 out for anything action related. It is probably capable, barely. At 4fps, it just wouldn't be fast enough to really zero in on the perfect moment in an action sequence. Hell, I consider the 6fps of the 5D III to be borderline good enough for my BIF work. There is also the situations in which you need a deep buffer for continuous shooting. Canon excels here...when you hit the buffer limit, you can still keep clicking away, albeit at a lower rate, as the buffer clears. The D800? It comes to a crushing halt, forcing you to pause while the buffer is cleared. That again puts it at a pretty severe disadvantage when it comes to shooting any kind of continuous action. The megapixel count, while a boon for some types of photography, results in huge file sizes...which can also be a limitation if you need to work through a lot of images in post (although that is not something relegated to just the D800...a high MP camera from Canon will have the same issue.)

If I had to pick a general purpose camera, and had to choose between the 5D III and D800, I'd pick the 5D III. If I had to pick a camera for landscapes, at the moment, the D800 wins hands down in a heartbeat. I could also use the D800 for macro work, if only I could slap on the *MP-E 65mm 1-5x Zoom Macro*. ;P


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## Aglet (Aug 4, 2013)

jrista said:


> What happens when your camera DOES stop functioning, and results are impossible?



backup bodies cover that



jrista said:


> I wouldn't haul a D800 out for anything action related.



yes, it's a little slow on fps but so's a 5d2. most of my subject matter only moves when the wind blows. 
I kept a 7d for speed until I dumped it last year. Waiting to see what a 7d2 will be like, or even the 70d. 40d, 60d, and some old rebels still back some Canon glass for now but rarely get used.
For everything else, d800/5100 and k52s work just fine and I no longer have to deal with dreaded pattern noise.

I DO miss the 7d when trying for BIF shots, especially in low light.

But that's the thing, I select my gear for specific kinds of shooting.
If I wanted an all-round, general-purpose body I'd have to make compromises...
I don't like compromises.

File sizes are not an issue either. I capture a small jpg with each raw, use those for a quick catalog to review shots to select for post.
Most post software will also allow you to batch-process so if you have at least a reasonably capable computer, you can continue to edit while running a batch.

So, other than limited fps, but not significantly different from previous canon FF, I've not heard of any significant impediments to using a d800 in the real world.


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## deleteme (Aug 13, 2013)

The problem with photo enthusiasts analyzing these numbers is that they bring their narrow views about their hobby to the issue.

The reason that compact camera sales have fallen is that phones are the camera of choice for the enormous market that is the casual user.
They do not care about any of the issues that the hobbyist cares about. They want the photo to "come out". And they do on even the most rudimentary phones. The phone is their display and their album. More than that might be nice but not worth spending anything for. Their stuff already looks good on FB so why bother?

The real concern is the evolution of the higher end products that enthusiasts and pros DO buy. Canon has already shown us their pro-active strategy on this front in the form of the higher prices on new lenses and other accessories. They are already pricing for the low volume market they see developing.

That is why their profits are not dropping precipitously while sales of small cameras are.


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