Canon Says Slumping Camera Demand Took Bite Out of Profit

Japan’s Canon said Tuesday that slumping demand for cameras took a bite out of its bottom line, as consumers increasingly turn to picture-taking smartphones.

The company also blamed sagging sales of its office printers in China and across Asia for a 19 percent decline in nine-month net profit to JPY 151.3 billion (roughly Rs. 825 crores).

Canon cut its full-year forecast again, blaming stagnant sales of laser and ink jet printers as well as digital cameras in emerging economies in Asia.

But revenue in the latest period was 3.4 percent higher as office equipment demand in other markets held up.

The company said it now expects a net profit of JPY 225 billion against its earlier estimate of JPY 245 billion for the calendar year – the second forecast cut in three months.

Canon and domestic rivals including Sony and Olympus have seen a big drop in sales of their digital imaging products as camera-equipped smartphone sales boom.