Canon released its Q2 financial results. The Q&A section includes several questions regarding the US-imposed tariffs, and Canon's position is "we will make up for this by reducing costs and raising prices":
Here are the details for the Canon Imagina Business Unit:
- Imaging Business Unit Performance:
- Second quarter sales increased by 6.5% year-on-year to ¥260.7 billion.
- Second quarter income before income taxes decreased by 3.9% year-on-year to ¥40.1 billion due to yen appreciation.
- First half sales totaled ¥472.8 billion, up 12.5% year-on-year.
- First half income before income taxes reached ¥72.4 billion, up 27.8% year-on-year.
- Camera Sales:
- Strong sales of mirrorless cameras, particularly the EOS R5 Mark II (launched in the second half of the previous year).
- New video-centric models, EOS R50 V and PowerShot V1 (launched in Q2), were well-received by both video and still image users for design, operability, and ease of shooting.
- EOS R50 V highly valued by video creators; PowerShot V1 popular for high-quality shooting among social media and still image users, leading to higher-than-expected orders.
- Market Outlook and Strategy:
- Global camera market expected to remain stable at ~6.6 million units, despite anticipated U.S. demand decline due to tariff-related price increases.
- Sales growth in Q2 driven by EOS R5 Mark II and EOS/PowerShot V series.
- Plan to increase full-year camera sales by 6% to 3 million units, focusing on strong Asian markets.
- Leverage EOS R5 Mark II’s success to boost RF lens sales.
- Expand PowerShot V1 sales and increase production of existing compact camera models to address back orders.
- Aim for overall camera sales growth of 5.4%.
Expect more price increases on photo gear: the new US tariff on imports from Japan is now 15%
Source: Canon
