Tsuneji Uchida, president of Canon Inc, warned of an impending market-wide slowdown in 2009 in an interview with Reuters citing sluggish economic conditions and lower consumer demand. He also told Reuters that Canon would try to cut $1 billion in costs by building a new computer system by 2010 and that he wasn’t in a rush to join any acquisition sprees.
The economic slowdown has started to hit sales of digital single-lens reflex (SLR) cameras but overall Canon’s camera sales are solid ahead of the year-end shopping season, Uchida said. “We hope we will see the same level of demand next year as this year,” Uchida said in an interview conducted by Reuters on Friday. “Whether or not that will become reality is up to economic conditions.”
No mention was made about other camera related products such as lenses and computer software and it’s possible the market will actually increase in other segments even while declining in total unit sales. Consumers are tightening their belts worldwide ending 2008 so they will make due with older camera equipment and perhaps buy some “extras” for existing gear.
With total unit sales approaching 25 million units for 2008 Canon will still see an almost 10% rise over 2007 figures. With close to a 20% market share of the worlds camera demand Canon can also use their cash rich position to wait out any storm. How about you, will you spring for a new camera this christmas or do you plan on waiting out the storm with older gear as well?
[via reuters, image by Reuters]