Compact camera market shrinking

[dreed]

From Canon's 2011 Annual Report (p52) comes this little gem:
"Overall, the compact digital camera market shrank year-on-year due to the ongoing economic stagnation in the developed world, but there was considerable growth led by Southeast Asia and other emerging market."

Interesting that they blame it on "economic stagnation" rather than product consolidation (phone+camera => phone)

This is in contrast to ILC camears (p51):
"The demand for high-resolution digital photos remained high, and as a result the interchangeable lens digital camera market continued to show robust growth in 2011"

... I was looking for a better forum to put this in, but there appears to be none for "discussion of industry news"?

[dturina]

Well, as my iPhone makes pictures that are actually better than an A-series compact from Canon (that I eventually gave to my 8-year old to learn photography with), I don't really see the point of small sensor compacts anymore. They had their time under the sun and now they can sadly sing "Memories" as far as I'm concerned. I certainly won't miss their image quality and photographic abilities. Welcome to the world of dSLR, EVIL and decent cellphone cameras.

[OldRoy]

Maybe it's just becoming, er, more compact?
Roy

[BJL]

That news from Canon goes with a recent report that Samsung is converting some of its production capacity from those "only one lens, only a camera" devices to its NX compact system cameras. Of course, Samsung is part of the attack from both sides:
- compact cameras that are more flexible by also being phones and computers, and
- compact cameras that are more flexible through having interchangeable lenses and bigger sensors.

Also, that talk of "sales contracting in the developed world, but still growing in emerging markets" has an ominous familiarity -- that is the pattern with Nokia, and with RIM's Blackerry phones. To me it just means that compact camera sales will peak and start declining in those emerging markets too, in a few years.

[dturina]

Also, that talk of "sales contracting in the developed world, but still growing in emerging markets" has an ominous familiarity -- that is the pattern with Nokia, and with RIM's Blackerry phones. To me it just means that compact camera sales will peak and start declining in those emerging markets too, in a few years.

What is also interesting is that their reading of the stats is similarly wrong - oh, it's the crisis, it's a temporary thing, it will pass and the market will return to its former glory.

When the more expensive premium products sell well and the generic commodity products are selling poorly, it's not crisis. When you can only sell your stuff in Lower Slobovia, you better rethink your products.

Canon is getting on my nerves lately. They seem to be sleeping on their laurels, they don't have inventive new products, they just warm up the yesterday's stuff and count that it will do well. It will, for a while, and then it will all crash down on them.

[Panorama]

 

Canon is "getting on your nerves"?

Have you not paid attention in the last 5 years, during which they've done little more than the minimum required to get by, while simultaneously raising prices 30%-40%? Their profits-over-products attitude began in 2007 with the last minute price hike on the 1d mark III; it has been all downhill since IMO.

[fike]

What is also interesting is that their reading of the stats is similarly wrong - oh, it's the crisis, it's a temporary thing, it will pass and the market will return to its former glory.

When the more expensive premium products sell well and the generic commodity products are selling poorly, it's not crisis. When you can only sell your stuff in Lower Slobovia, you better rethink your products.

Canon is getting on my nerves lately. They seem to be sleeping on their laurels, they don't have inventive new products, they just warm up the yesterday's stuff and count that it will do well. It will, for a while, and then it will all crash down on them.

When you are a market leader, you are judged and valued on maximizing profits.  This means you will try to maximize the time you can benefit from your prior R&D investment before creating a new product.  It isn't really lazy; it is a natural side-effect of not enough credible competition. Why would I want to spend money to make something new before I absolutely must?

I don't think Canon is foolish enough to misunderstand the dissolution of the compact market.  There just isn't any upside for them in publicly acknowledging that it is going away in favor of cameras attached to phones. I am sure there are some panicked conversations at Canon and Nikon wondering how they can continue their current growth with the smaller product portfolio that results from loss of compact cameras.

[dturina]

Canon is "getting on your nerves"?

Have you not paid attention in the last 5 years,

In fact no, I must admit. I was obliviously getting good use out of my 5d.

[dturina]

When you are a market leader, you are judged and valued on maximizing profits.  This means you will try to maximize the time you can benefit from your prior R&D investment before creating a new product.  It isn't really lazy; it is a natural side-effect of not enough credible competition. Why would I want to spend money to make something new before I absolutely must?

What you say is all true, but it doesn't mean Nikon didn't overtake them and that it won't backfire on them.
Not to mention the entire EVIL market which is passing them by completely.

[thewanderer]

probably geroge bushes fault

[fike]

probably geroge bushes fault

Not his fault, but it is the natural outgrowth of global corporate consolidation.  Consolidating business interests in the US tend to side with the Republican party that GWB is a member of.  With that said, Bill Clinton didn't do much to stand in the way of anti-trust and anti-competitive behavior. Also, it is notable that this isn't strictly a US phenomenon and in this case isn't something US administrations could confluence.  Nikon, Olympus, and Canon (some others, I think too) are Japanese companies where similar forces are at work. 

[svein-frode]

Don't forget that the Industry in Japan has been hit hard by the strong yen over the last years. It is why Samsung among others have cut into many electronic/computer industry segments traditionally were dominated by Japaneese companies.