Canon 2008 Annual Report Download - page 62

60
Computer peripheral products
In the inkjet printer market, Canon expects a slowdown in
market growth led by the global economic slowdown, and the
shift from single-function printers (“SFPs”) to MFPs. To manage
these trends, Canon has focused on selling mid-range to high-end
models which enables large volume of printing, including the
business-use multifunction models equipped with a facsimile
function, and simultaneously has strengthened its lineup to
entry models with the utmost effort to expand overall sales.
Canon’s laser beam printer business had been maintaining
a strong position in the market, which had consecutively displayed
solid growth. However, the deterioration of the current global
economy has led to a dramatic decline in the market as a whole,
raising uncertainty in the market. Within the monochrome
laser beam printer market, the reduced demand in emerging
economies, which had been driving market expansion, was sig-
nifi cant especially in Russia, in addition to the drop in developed
countries. This situation has led to the shrinkage of the overall
market. As for color laser beam printers, market growth
reversed from expansion to a slight contraction. Amid this severe
market conditions, Canon is accelerating the development of
competitive, strategic products in all segments to introduce
those products on a timely basis and prepare for the recovery of
the global economy. Canon is also focused to shift from selling
single-function models to multifunction models, as Canon
expects continued growth in demand for multifunction models.
The promotion of automated production of cartridges, along
with in-house production of parts to ensure stable procurement,
is concurrently in progress.
Business information products
As for document scanners, the adoption of internal information
management systems by corporations, and other factors are
driving a worldwide movement to digitize documents and
Canon expects the market for low-priced, compact scanners to
continue to expand. With regard to servers and personal com-
puters, demand from corporate clients in the Japanese market
held steady in fi scal 2008, but a decline in sales was caused by
Canon’s change in marketing strategy from selling single products
to a solutions business involving combinations of various products.
Cameras segment
The digital camera market expanded in 2008, despite the
slower growth starting in September 2008 due principally to
the fi nancial crisis. Developed markets such as the United States
exhibited negative growth due to the fi nancial crisis. However,
markets in emerging countries such as China and Eastern
Europe have continued to expand. The emergence of digital
imaging systems such as PC-free direct printing systems has
contributed to this growth by expanding digital imaging func-
tionality through network connectivity. The improvement of the
user-friendly image processing interfaces and software have also
boosted growth.
Currently, the overall market for digital cameras is stagnant
due to the current economic crisis. However, digital cameras are
popular among individuals and further expansion is expected
once the economy recovers. Nevertheless, as with most other
digital consumer electronics, the digital camera market is now
confronted with a fi erce price war and intensifi ed technological
competition in terms of picture quality and functionality. Profi t
margins have been shrinking overall in the industry, and Canon’s
profi t ratio has fallen due to the sharp economic downturn and
fl uctuations in the foreign exchange rates. Canon expects the
market for compact digital cameras to expand in the medium
term, thanks to growth in emerging market countries. However,
industry profi t margins are eroding due to falling prices and
increased competition. Therefore, Canon seeks to continue
cutting production costs while expanding sales volumes.
Canon believes that it played a major role in the continued
expansion of the digital SLR market in fi scal 2008. Although the
diffi cult global economic situation has resulted in slowed growth,
this market is expected to continue to grow in the near term. The
trend towards high ISO speeds has moved at a dramatic pace in
this digital age. It has become possible with a digital SLR camera
to easily take beautiful shots in dark places where shooting with
fi lm cameras is impossible. Also, movie functions were added to
SLR cameras this year, marking the beginning of a new age for
these products. These functions have expanded the possibilities
for shooting, and by supporting new user needs, Canon believes
it can develop the market even further.
Canon expects the interchangeable lens market for SLRs to
grow as a result of the market penetration in the digital SLR
camera market. Canon aims to expand its sales and market
share by introducing the most suitable products for the digital
SLR camera users, including products with Canon’s Image
Stabilizer capability.
Diversifi cation in the global video camcorder market has
occurred with various new media appearing, such as DVDs, hard
disks and fl ash memories. However, starting in 2008, it became
apparent that the trend is heading for fl ash memories to become
mainstream in the global video camcorder market and towards
High Defi nition (“HD”). Canon believes that these two trends
will lead to higher picture quality from smaller video camcorders
with longer battery life, and will likely support growth in the
overall digital video market. Canon is working to expand sales of
its powerful lineup of products that meet a wide range of user