Canon 7 times more profitable than Nikon

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benny

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Jan 14, 2004
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An interesting read from Fred Miranda:

If you are a Nikon fan, don't read this. Put on a Pavarotti-CD and lean back.

Canon's enormous profitability is worth noting these days. It has been the attention of both CNN and BBC. It is beyond anyone's dreams. Particularly the camera part. I will concentrate on this. Let's first look at last year:

In 2003 Canon's camera division had a turnover of 653 billion Yen, up some 34% from 2002, and an operating profit of 126 billion Yen. - This is a record within the camera industry. Actually more like the result of 'the whole industry' accumulated, compared to the old analogue world.

Check this to Nikon's 'last year' 2003/4 ending 31.March 2004: A camera division turnover of 283 billion yen and a more 'normal' operating profit of 25 billion Yen.

While Canon totally (incl. office machines etc. etc.) made an after tax profit of 274 billion Yen - adding to a 'war chest' of money enough to by the rest of the camera industry, Nikon totally (including steppers etc. etc.) barely made a profit of 2,4 billion Yen. - After selling out real estate and including as income issued, but not sold, 'junk bonds' (remember Enron?)!

'Ah, Nikon will catch up', some might say. These two combatants were practically equal in size some 4 - 5 years back. No they won't. For a good while at least.

Presenting their 1. quarter report, the Nikon managment issued a forecast for 2004/5 (ending 31.march 2005) for the camera division of 370 billion Yen in turmover and a drop in operating profit to 19 billion Yen. (The price of not having their own CCD in 70D?)

Canon issued their forecast for 2004 recently, increasing it (further) to a turnover of 811 billion Yen and a operating profit for the camera division of 151,8 billion Yen.

By this Canon's camera division is twice the size of Nikon's and more than 7 times as profitable.

I am in no doubt that the source of Canon's camera division's enormous success is the EOS 1Ds and the 1D Mrk II.

If the Nikon managment sticks to their official strategy of only offering 1,5 crop sensors in their D-SLR's they are making a gigantic strategic blunder.
Click to expand...

hmm.......That means there's actually plenty of room in the margin for competitive adjustments.....

Cheers,
 
Good for Canon, hope to see mid-ranged SLR's under 1000 bucks with lenses soon ;) LOL

Tony
 
yeah, it can be a soap opera - but there are facts in this whole thing.

canon make GOOD lenses. Alot of photographers (professional) aren't sponsored by canon - they just prefer the equipment.

in comparison - nikon lenses are much more expensive, as are the cameras - for what you get, you could get a different camera for the same price with more features.

yes, canon brought out the first DSLR that was under $1000 with a lens. And there are a HECK of alot of photographers (even professionals) that say that the kit lens is surprisingly good. Not "L" quality - but when you pay $600+ for a lens for a red stripe - you'd better hope that it is good quality.

IF (and maybe WHEN) nikon actually bring out a TRUE competitor to the digital rebel (and not $999 for a body only) and maybe if they bring out a FULL frame DSLR - then maybe they may get some people coming back to them

But the biggest problem with nikon is that all of their DSLRS (and i'm only now focusing on these cameras) have a 1.5x crop factor. Canon have 1.6x (D30, D60, 10D, Digital rebel), 1.3x (1D mk II) and a full frame camera (1Ds). Alot of lanscape photographers switched to canon because of that full frame sensor.

not a soap opera - but a fact of life. Until nikon actually do something about that - they're still going to lose alot of landscape photographers (who need the wider angles). Releasing a lens to help with that just isn't going to be enough.

And yes, noise is also a factor - as is color rendition. The noise seems to be alot more smoother in the canons than in the nikons.
 
meriadoc,

I won't go into debate on fish forum about Nikon vs. Canon and start picking and choosing cons and pros. Its pointless. You can state your opinions in any Nikon section and you will get "slapped" so fast your head will spin. I have seen those topics with 100 and more replies; they get very dirty.

I love one of the replies.

Canon 7 times more profitable than Nikon

Re: GM is 10 times more profitable than Bayerische Motoren Werke (BMW) - And this tells us what about the cars ??

Enjoy your Canon as much as we enjoy our Nikons and please stay away from the D70 forum!!

Let's leave it at that and talk fish/photography :)
 
i wasn't trying to start a debate ;)

i don't particularly like the dpreview forums anyway - maybe because there is so much of that crap going on - its something you rarely see at fred miranda, and other sites.

but, with that, i'm off to find out what equipment i should be taking on my vacation in october :)
 
well, hubby and I are heading off to durango, CO for a few days in october, and we're probably gonna do some hiking - so i need to get a backpack for my laptop, and camera gear...

another photography site?

well, i go to a different site - wetcanvas.com - where there is a photography section - a whole bunch o' friendly people there too :)
 
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