Canon: “the camera market has largely bottomed out”

In a recent Q&A session related to their latest financial results, Canon mentioned that "the camera market has largely bottomed out". Here is the full Q&A transcript:

Canon Inc. Q2 2022 Analyst Meeting Q&A Session Summary:

Q1. What is your outlook for the external environment in 2023 and the sustainability of your growth going forward?
A1. Even if production around the world recovers smoothly, it will probably take around a year for the inflation caused by the shortage of goods, which arose from supply-chain disruptions etc., to subside naturally. We expect to continue growing as we have transformed our business portfolio and will actively invest to further enhance our products.

Q2. What is driving growth in CT service revenue and how do you expect this business to perform going forward?
A2. We were able to grow service revenue by increasing our install base through strong sales of CT systems in Japan last year. Currently, our diagnostic imaging business, includes CT, MRI, ultrasound, and other modalities. Within this, however, we are steadily taking steps toward achieving the world's No. 1 market share position in CT, which will contribute to expanding our business performance in the future.

Q3. Amid concern that semiconductor capital spending will slowdown, what is your outlook for semiconductor lithography equipment demand in 2023?
A3. Considering the current situation of semiconductor shortages and the technological innovation that is occurring now, we expect demand to remain strong. For this reason, we will continue to invest in production expansion, with a plan to increase our production capacity by at least 50% in the future.

Q4. When will you commercialize Nanoimprint?
A4. We already have a product ready and are now making adjustments to address customer requests. Demand for this product is expected to be high as a large reduction in cost can be expected compared with conventional lithography equipment, and we expect to reach a certain level of sales volume in 2025.

Q5. What is your outlook for the camera market going forward? Additionally, will you continue to offer both Mirrorless and DSLR cameras?
A5. The camera market has largely bottomed out at its current size. Going forward, we expect the professional and advanced amateur segment to expand further and that products will become more highly developed. Accordingly, we expect the overall market to grow from now on. As for DSLR cameras, we will continue to supply products as long as there is demand.

Q6. There have been reports that the Chinese government will regulate the design and manufacture of office equipment in China. What do you intend to do with the production of office equipment in the future?
A6. We understand that the report was not an official statement by the Chinese government. We cannot comment at this time. China is an important market, and we will continue to closely monitor the situation going forward.

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