Canon 2004 Annual Report Download - page 28

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The digital SLR camera market has expanded since the intro-
duction of our EOS Digital Rebel (EOS 300D in some areas)
in 2003. In 2004, the worldwide market size was estimated
to be about 2.4 million units, or three times the market size
of the previous year. Amid these market conditions, Canon
moved well ahead of its competitors by introducing a strong
lineup. These included the EOS-1D Mark II and EOS-1Ds Mark II
for the professional market, as well as the EOS 20D for the
advanced amateur market. As a result, we succeeded in
capturing a more than 50% market share.
Our success was largely thanks to our large-size CMOS
sensors, which we produce internally, including a full-size 35mm
CMOS sensor with 16.7 million pixels. Another important
accomplishment was further improvements to the DIGIC, our
most advanced image processing engine. The DIGIC II has
enhanced capabilities for high-quality image reproduction
and high-speed data processing. The superior performance
resulting from these improvements enabled Canon to establish
a dominant presence at major sporting events in 2004.
Turning next to the compact digital camera field, where
market competition has become increasingly aggressive,
Canon is working to accurately identify market trends
while achieving competitive production costs. In 2005, we
will expand our lineup of models incorporating DIGIC II.
Our aim is to sustain product quality while maintaining
appropriate levels of profitability.
In product development improvements, we are shortening
the time to market by taking advantage of simulation,
analysis, and measurement technologies that move us
closer to “prototype-less design.” These improvements
allow us to pursue concurrent development from the trial
production stage all the way to mass production. With the
opening of our new, cutting-edge manufacturing plant in
Oita, Kyushu (Japan), our production capacity has been
expanded substantially, and we believe we can strengthen
our No. 1 position in digital cameras.
At the same time, we are now
much better positioned to respond
flexibly to changes in the market.
In the video camcorder
world market, where more
than 80% of units sold are now digital, Canon is aiming
to expand its market share by continuing to introduce new
products that feature high image quality in a compact body
at competitive prices. In the U.S. market, we further
strengthened our position in the professional and advanced
amateur market segments by introducing the XL2, a new
model to follow our long-term, best-selling XL1.
Furthermore, in 2005 and beyond, we are taking steps to
expand into new areas, including the compact photo printer
and LCD projector fields. We developed a new projector
that uses reflective liquid crystal on silicon, or LCOS, that we
introduced near the end of 2004. We have also developed
a new optical engine, “AISYS” (Aspectual Illumination
System), for LCOS that features ultrafine image quality and
responds to SXGA+ (1400 x 1050 pixels) requirements.
Tsuneji Uchida
Chief Executive
Image Communication Products Operations
PowerShot SD500
(Digital IXUS 700 in some areas )
As unit sales of digital cameras have expanded
nearly 60% annually, Canon has moved forward
with aggressive innovations in all phases of its
activities, from development through production
and other aspects of its digital camera business.
CANON PRODUCT GROUPS
CAMERAS