# Canon posts significant increase in sales and profit for Q3 2017



## rrcphoto (Oct 24, 2017)

Canon today posted their 3rd quarter results, and the numbers are pretty good. It is Canon's 3rd consecutive quarter of YoY sales and profit growth starting from Q1, first time in 7 years.







Canon showed sales growth overall gaining 27% from 3rd quarter 2016, and Op Profit gaining 101% since the 3rd quarter 2016.

On the imaging front, both sales and operating profit gained from YoY 3rd quarter 2016, however, the total number of units sold dropped by 5%. Which is most likely low considering that last year, for the 3rd quarter they had limited competition because of the Sony Kumamoto earthquake that affected sensors over the vast majority of the industry.

*For interchangeable-lens cameras, the rate of market contraction, primarily in developed countries, continue to slow down. Against this backdrop, our sales, which were relatively high in the same period last year due to the earthquake, were down 5% to 1.31 million units, which was better than we expected.
In our lineup, we increased sales of the EOS 6D Mark II, a new competitively priced model within our range of interchangeable-lens cameras featuring full-frame sensors. This camera has been highly rated not only for significant improvement in such basic features as AF, but also for being able to offer this in a camera that is both compact and lightweight. As for the compact camera market, which continues to recover from the earthquake, we posted strong sales of such premium models as the G9X Mark II, which offers excellent portability. Additionally, as our sales were at a low level due to the earthquake in the same quarter last year, our unit sales in the third quarter of this year showed an increase of 13% to 850 thousand.
*






For the more longer term outlook, Canon expects more of the same, a slight increase in unit sales from the prior projection and still slightly under what they sold last year, as a result of the Kumamoto earthquake.

_*For the full-year, we raised our projection for interchangeable-lens cameras by 200 thousand units, as we posted better than expected results in the third quarter. We now expect sales to be down 3% to 5.5 million units.
One of the reasons for the revision was due to an increase in demand for high-quality images, particularly from smartphone users who use social media. Interchangeable-lens cameras, which are user-friendly and offer enhanced network capabilities that meet this demand, are leading to the acquisition of new users. As a result, our entry-class models have performed beyond our expectations. On top of this, sales of our new models that mainly target advanced-amateurs were also better than expected. 
We also reflected this situation into our market projection, which is now projected it to be down 1% to 11.4 million units.
*_






Interestingly according to Canon, they expect to see the ILC market overall essentially stabilize at around 11.4 million units with Canon having a 48% market share in total ILC units.

http://www.canonnews.com/canon-posts-dramatic-gains-for-the-3rd-quarter-2017


----------



## neuroanatomist (Oct 24, 2017)

All of these data are irrelevant. The D850 and a9 are much better than any Canon camera. Canon is *******. Clearly...I mean, clearly.


----------



## ritholtz (Oct 24, 2017)

neuroanatomist said:


> All of these data are irrelevant. The D850 and a9 are much better than any Canon camera. Canon is *******. Clearly...I mean, clearly.


If it is Sony, there will be articles up by now in dpreview explaining how a9 helped them to increase operating profit.


----------



## rrcphoto (Oct 24, 2017)

neuroanatomist said:


> All of these data are irrelevant. The D850 and a9 are much better than any Canon camera. Canon is *******. Clearly...I mean, clearly.



clearly *******.

I think it's really hard for people to understand that Canon knows their market better.

Yes, I'll be shocked if dpreview posts about this.


----------



## Talys (Oct 24, 2017)

Wow, impressive. You can really see how iPhones and Androids are killing point and shoots like the interwebs goes on about.


----------



## 9VIII (Oct 24, 2017)

So despite all the harsh criticism the 6DMkII is selling well, and the SL2 is a resounding success.

Excellent. I still want a compact 7D series body.


----------



## Talys (Oct 24, 2017)

9VIII said:


> So despite all the harsh criticism the 6DMkII is selling well, and the SL2 is a resounding success.
> 
> Excellent. I still want a compact 7D series body.



I would like the 7D reduced to the size of 80D, with a flippy screen and ability to resolve up to ISO 5000 like a 6DII


----------



## rrcphoto (Oct 24, 2017)

so first thing in the morning, I sent in an email to dpreview via their contact us page, and told them about this.

Yet no posting on dpreview. 

#ItsNotSonyNews


----------



## neuroanatomist (Oct 24, 2017)

rrcphoto said:


> so first thing in the morning, I sent in an email to dpreview via their contact us page, and told them about this.
> 
> Yet no posting on dpreview.



Maybe it's just taking a while to devise the proper 'spin' to use in describing their favorite brands losing market share to Canon.


----------



## ritholtz (Oct 25, 2017)

neuroanatomist said:


> rrcphoto said:
> 
> 
> > so first thing in the morning, I sent in an email to dpreview via their contact us page, and told them about this.
> ...


I doubt dpr understands all those cooked up numbers by smart accounting people. Sony is a conglomerate with different revenue streams. They don't even attribute revenues specific to Camera division. dpr just spins it around as a success for their favorite Sony Camera.


----------



## Talys (Oct 25, 2017)

ritholtz said:


> I doubt dpr understands all those cooked up numbers by smart accounting people. Sony is a conglomerate with different revenue streams. They don't even attribute revenues specific to Camera division. dpr just spins it around as a success for their favorite Sony Camera.



The spin: Google makes WAY more money than Canon! Proof positive that the Pixel 2 is a WAY better camera than anything that Canon makes.




neuroanatomist said:


> Maybe it's just taking a while to devise the proper 'spin' to use in describing their favorite brands losing market share to Canon.



Some folks just haven't learned that cameras are not about photography. First, cameras exist to demonstrate amazing new sensor technology (oooo _sensors_), and to judge that technology scientifically, it requires that we break down said technology into charts and numbers so that one can be better than the other. Second, the purpose of producing these devices is so that you can buy them and own a piece of awesome technology with LCDs and buttons and dials and knobs. The charts and numbers are really important, because each year, we need to prove that the numbers are getting bigger, because, see, that's all purchasers of cameras really care about anyways. Third, cameras exist so that you can click on the link on our website to buy stuff, which generates us money. To which bigger numbers every year are crucial!

See: none of those purposes actually involves photography; you can be a happy consumer, confident that you could take beautiful pictures if you wanted to, and the manufacturer, retailers, and our website all get to make money. Win-win-win!


----------



## ethanz (Oct 25, 2017)

Talys said:


> Wow, impressive. You can really see how iPhones and Androids are killing point and shoots like the interwebs goes on about.



I was really surprised by the YOY growth in the compact cameras. I know it says demand due to the earthquake last year, but we all thought those compact cameras were going away and being replaced by smart phones. Leaving only the ILC left to those who want high quality.


----------



## unfocused (Oct 25, 2017)

neuroanatomist said:


> All of these data are irrelevant. The D850 and a9 are much better than any Canon camera. Canon is *******. Clearly...I mean, clearly.



Neuro, I'm disappointed in you. Don't you know that the talking point for any thread about Canon leading the market is supposed to be:

"You people are all fools. You care more about Canon making money than you do about how they are screwing you over by selling inferior products.

"I, on the other hand, am so sophisticated and discerning that I refuse to buy another Canon because the spec sheets for other cameras are better."

Get with the program man. You know better.


----------



## Mt Spokane Photography (Oct 25, 2017)

That big increase in profits came because Canon was setting on a hoard of cash, and went shopping for profit making businesses. Surveillance Camera Maker Axis and Medical Imaging Manufacturer Toshiba.

That's where that big jump in profit comes from. There have also been increases in high end printers and in lithography equipment.

So, industrial equipment is where the profit is at.

I expect to see the Nikon D850 turn a profit, or at least stem the flow of red ink.


----------



## rrcphoto (Oct 25, 2017)

So yes. dpreview today .. #ItsAllAboutSony

Sony releases it's financials on October 31st. Get prepared to read all about it on dpreview


----------



## Mt Spokane Photography (Oct 25, 2017)

rrcphoto said:


> So yes. dpreview today .. #ItsAllAboutSony
> 
> Sony releases it's financials on October 31st. Get prepared to read all about it on dpreview



Sony has turned the corner on selling sensors, so there should be a big percentage profit increase with earthquake damage repaired, and the smartphone business doing better.

As far as camera sales, they are in the same boat as everyone else, trying to figure out how to make a profit while sales decline.


----------



## rrcphoto (Oct 25, 2017)

Mt Spokane Photography said:


> rrcphoto said:
> 
> 
> > So yes. dpreview today .. #ItsAllAboutSony
> ...



the point must have zipped over your head.

every bit of sony news ends up on dpreview for this last year, however dpreview has been very lax when it comes to canon news of the same regard.


----------



## Talys (Oct 26, 2017)

Mt Spokane Photography said:


> rrcphoto said:
> 
> 
> > So yes. dpreview today .. #ItsAllAboutSony
> ...




Really? Their smartphone business is doing better? I'm astonished, as I cannot recall seeing a Sony smartphone anywhere other than a Sony Store in eons.

By the way, the +15% on non ILCs with Canon was super-surprising to me. I am very curious as to whether it is Canon thing, or an industry trend.


----------



## JohanCruyff (Oct 26, 2017)

From the official press release
http://www.canon.com/ir/results/2017/rslt2017q3e.pdf
The nine months sales growth is due mainly to the "Industry and Other" division (+28.7%), while the "Imaging System" division grew just 3.2%.
But the recent trend is positive. The third quarter growth rates are better balanced: respectively, +35.7% and +9% .
The wording "_*we increased sales of the EOS 6D Mark II"*_ isn't particularly meaningful IMHO: having read (and written!) several financial press release, I can assure that Investor Relators always tend to consider their glasses "half full".


----------



## JohanCruyff (Oct 26, 2017)

rrcphoto said:


> So yes. dpreview today .. #ItsAllAboutSony


 
Very good news! 
If DPReview doesn't write about the new Sony masterpiece, they have to change their web address to www.DP850DReview.com!


----------



## Maximilian (Oct 26, 2017)

Talys said:


> ...
> Really? Their smartphone business is doing better? I'm astonished, as I cannot recall seeing a Sony smartphone anywhere other than a Sony Store in eons.
> ...


Hi Talys! 

I think I've understood something wrong here. 
It's the general smartphone business, that's doing better. And the smartphones are one of the biggest customers of Sony imaging sensors. 
Conclusion: good smartphone sales -> good Sony sensor sales -> profit for Sony


----------



## ethanz (Oct 26, 2017)

Maximilian said:


> Talys said:
> 
> 
> > ...
> ...



Yes, Sony is one of the largest smartphone camera sensor suppliers in the world.


----------



## rrcphoto (Oct 26, 2017)

JohanCruyff said:


> rrcphoto said:
> 
> 
> > So yes. dpreview today .. #ItsAllAboutSony
> ...



maybe 

the D850 is a sweet camera though .. the A7RIII looks pretty nice .. if you can stomach a Sony.

however; the complaint was already raised the last two times that Dpreview did this ; canon's Q2 financials and Canon's video camera releases with a new homegrown 1" DPAF sensor were also skipped. Of course, the same announcements for Sony's financials and video cameras were heralded and written about.

It's curious behavior from a company that continues to act insulted and injured when comments about bias come up.


----------



## Mt Spokane Photography (Oct 26, 2017)

Talys said:


> Mt Spokane Photography said:
> 
> 
> > rrcphoto said:
> ...



Nothing to do with Sony phones, its the sensor market that I mentioned. In case you did not know it, Sony sells sensors to smart phone manufacturers in enormous quantities so when smartphone sales drop, sensor sales drop as well. 

Sony's sensor sales to smart phone manufacturers is greatly improved this year. They lost a ton of money on sensor sales last year due to the downturn in smartphone sales by all makers.


----------



## Talys (Oct 27, 2017)

Maximilian said:


> Talys said:
> 
> 
> > ...
> ...



Aha! You are absolutely right! I get it now 

Thanks!


----------

