Canon 2007 Annual Report Download - page 38

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36
Working toward continuous growth, Canon will consistently offer a product lineup
that caters to the needs of all users while boosting sales in emerging markets.
Katsuichi Shimizu
Chief Executive,
Inkjet Products Operations
In 2007, the market for inkjet printers
continued to shift from single-function
printers (SFPs) to multifunction printers
(MFPs). As a result, MFP sales increased
primarily on a unit basis, while the SFP
market contracted in excess of expectations.
Against this backdrop, unit sales of Canon’s
inkjet printers increased slightly from the
previous fiscal year. Buoyed by successful
efforts to expand its product lineup, howev-
er, the Company reported record-breaking
results on a value basis, with consumable
supplies in particular showing healthy year-
on-year growth.
Driving these results was the Company’s
commitment to photo quality for its inkjet
printers, represented for example by Canon’s
proprietary FINE (Full-photolithography Inkjet
Nozzle Engineering) technology for high-
resolution, high-speed printing. Because of
the Company’s technological expertise, its
mid- to high-speed products were highly
evaluated in the marketplace for their user-
friendliness, ease-of-use and sophisticated
designs. Furthermore, the Company aggres-
sively promoted MFPs for business use
prompting expectations of increased print
volumes. Looking to extend our its base,
Canon also launched a new MFP series with
additional features such as facsimile capabili-
ties. The boost in sales of medium- and
high-grade products, led to significant sales
growth of consumable supplies.
Looking at results for inkjet printers by
region, sales on a unit basis in 2007 remained
in line with the previous fiscal year in Japan,
North America and Europe, while unit sales
set new records in Latin America, Southeast
Asia and Russia. With preferences differing
from region to region, Canon expanded its
printer lineup, introducing core models that
match the characteristics of local markets
and respond to individual market needs.
Sales of medium- and high-grade MFPs
stayed on course in Japan and Australia, with
robust results in the Americas, Europe and
Asia for SFPs and low-end MFPs.
Turning to the Company’s production
systems, Canon worked to procure parts
locally, step up in-house production and
reduce costs in Vietnam and Thailand. To
meet the high demand for inkjet printer
cartridges, Canon bolstered its production
capabilities and pushed ahead with auto-
mated production. In 2008, a new cartridge
production plant will commence operations
at Oita Canon Materials.
Also in 2008, Canon will enhance its
FINE printhead technology and will also offer
user solutions that make photo printing
simpler and more enjoyable. This is expected
to increase opportunities for printing at
home. At the same time, the Company will
propose high-speed, high-quality inkjet
printer solutions that also take into consider-
ation concerns for the environment to SOHO
and office users. While there is little likeli-
hood of strong market growth in 2008,
Canon will aggressively promote sales in
emerging economies led by the BRICs.
Collectively, these initiatives are forecast to
further increase sales of consumable supplies.
Inkjet All-in-One
COMPUTER PERIPHERALS
Product Groups