Canon fights back as its stock continues to fall, by releasing more mirrorless cameras, cinema cameras, and expanding its lenses for the advanced and professional market. Read below about Canon’s fragile situation.

New high-end mirrorless and cinema EOS on the horizon

Recently Canon announced the development of the EOS R5 full-frame mirrorless camera. The EOS R5 FF contains a newly developed CMOS sensor that will allow 8K video mode together with impressive specs for still photography. This model is supposed to be defined as Canon’s mirrorless flagship for advanced video shooters. Canon will probably announce the R5 in the forthcoming NAB Show or Cine Gear. Moreover, there are rumors that Canon is developing a new member of the Cinema EOS family. However, the specs are still unclear. Furthermore, during 2020 Canon plans to release a total of 9 RF lenses (currently in development) to extend the EOS R System. Canon believes that strengthening the mirrorless family will help the company to overcome the profit decline in the Imagine System segment.

To recover from our late entry into the mirrorless camera market, we have plans to launch a model that incorporates a newly developed image sensor and image-processing engine that offer even more advanced features Canon

Sales and profit declines

According to Canon’s Imaging System full-year financial results, sales, and profit fell. Canon admits that the company entered the mirrorless era market late. Moreover, Canon claims that its camera business was negatively impacted by market contraction and the intensely competitive environment. As stated by Canon: “We expect camera revenue to decline due to the impact of continuing market contraction. We will put a stop to the decline in profitability by further enhancing our mirrorless lineup with an advanced feature full-frame model and lenses, and by accelerating review of our business structure.“.Recently, Canon USA made a significant update to their authorized dealer list by removing 86 authorized dealers, which is nearly 20% of their network. This change was made to reduce Canon USA’s operating costs and thus cutting losses.

In 2020 Canon plans to focus on mirrorless options for advanced shooters

According to the financial report, Canon predicts that there will be a stable demand for professional and advanced models. Canon says that to maintain profitability, it is essential for the company to secure market share and improve its product mix further in this area. As stated by Canon:” Although we have launched two full-frame mirrorless cameras as well as ten dedicated lenses, our lineup is still insufficient. To recover from our late entry into the mirrorless camera market, we have plans to launch a model that incorporates a newly developed image sensor and image-processing engine that offer even more advanced features. We will work to raise our presence in the mirrorless camera category, leveraging large trade exhibitions around the world. Even amid increasing competition, we will expand sales of higher-end models driven by new products and aim for top market share also in the mirrorless camera market. At the same time, we will expand our lineup of dedicated lenses launching several innovative ones that take advantage of the new mount that allows greater flexibility when designing lenses.”

Although we have launched two full-frame mirrorless cameras as well as ten dedicated lenses, our lineup is still insufficient Canon

Final thoughts

There is no secret that Canon is undergoing hard times as the stock moves downward. It seems that the company is shooting in all directions to stop the dive and elevate sales and profit. The rumor of announcing another Cinema EOS model is a reference for that aggressive development stage since the C500 Mark II has just launched. Go here to read more about real-world execution of Canon’s new cinema flagship – the C500 Mark II.

Although Canon is taking risks by cannibalizing its own high-end products, it seems that this is the most logical pathway to deal with hard competition. To sum it up, 2020 is going to be a critical year for Canon, as RED is about to release its forthcoming low-end cinema camera- the Komodo, which might become Canon’s most threatening competitor for both mirrorless and cinema market share.