Canon Lowered Earning Forecast due to Weakening Demand in Asia
Canon Inc the digital imaging specialist has lowered its full-year earnings forecast. The reasons given were slower-than-expected demand for digital cameras in China and Southeast Asian countries. Sales of office printers, laser printers and ink-jet printers were also slow in Asia.
Sales of Digital Cameras have been slowing down over the last few years with the advances in smart phone imaging being blamed. This has been an ongoing problem that had been stabilizing recently but the Asian slowdown has exacerbated the problem. See the series on the Digital Camera Market Report - 2013 on.
Canon are the world's biggest maker of cameras and printers. They have said they are now expected group operating profit of ¥365B / $3.02B for the year ending in December. This is down from the previous estimate three months ago of ¥380B / $3.14B.Sales are expected to come in at ¥3.8T down from previous forecast of ¥3.9T.
Demand in China is the main concern as it has been the powerhouse of global growth. Now that growth is slowing it is having an effect of technology sales. This is a worry in the short term but with economic stimulus there is still opportunity for greater demand in China in the medium and longer term.
Until things improve the Digital Camera manufacturers will have to ensure their products are leaders in technology, features and price. This will mean keeping a close ear to what the consumer is asking for.