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Canon Considering Outsourcing Camera Manufacturing to Cut Costs

As smartphones continue to eat into camera market shares, mostly entry-level, and as demand for printers for businesses decreases, Canon is considering moving some manufacturing out of Japan.  With less demand for low-end, entry-level-style cameras and office equipment like printers and copiers, Canon is considering moving more manufacturing outside of Japan. Global camera sales are down significantly since 2008 The drop in demand for cameras can be attributed to the rise of smartphones with cameras that get more and more advanced each year. And, as more companies go digital, the need for printers and copiers decreases yearly. “We want to go fabless with the printers and lower-end digital cameras we manufacture in Asia,” explained Canon Chairman and CEO Fujio Mitari to Nikkei Asia. “We can become more asset-light by outsourcing based on production quantity rather than maintaining our own factories.” The Canon PowerShot V10. Image credit: CineD However, in the past couple of years, there has been an increase in demand for compact, digital point-and-shoot cameras among Gen Z. Canon has largely missed out on this trend. The company closed their compact camera manufacturing plant in Zhuhai, China, in 2022. While other manufacturers are capitalizing, Canon did have a pretty good reason for their closure: Since 2008, they’ve lost $8.2 billion in sales of cameras, printers, copiers, and other devices. They shipped only 8 million digital cameras in 2021, a massive decrease from 120 million in 2010. The rise of point-and-shoot cameras is a surprise, no doubt. Most manufacturers, including...

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Published By: CineD - Yesterday

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