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Canon to pull out of analogue camcorder biz
Tokyo, May 12: Japanese camera and office equipment giant Canon Inc said on Wednesday it would pull out of the analogue camcorder business in 2004 and focus on the growing market for digital video cameras instead.
Tokyo, May 12: Japanese camera and office equipment giant Canon Inc said on Wednesday it would pull out of the analogue camcorder business in 2004 and focus on the growing market for digital video cameras instead.
Canon said it planned to pull the plug this summer on the production of two models released in the United States and Europe in January 2003. That will make those two models the final analogue video cameras produced by the firm.
"The advantages that digital technology offers consumers make it the hands-down choice," Canon spokesman Richard Berger said.
Much like the still camera industry, the global video camera business is undergoing a rapid switch from analogue to digital as consumers opt for digital models that are lighter and offer more advanced functionality.
Canon expects its sales of digital camcorders to rise 44 per cent to 2.6 million units in 2004 and forecasts that digital models will account for 80 percent of industry-wide camcorder sales this year, up from 72 percent in 2003.
Canon has released 134 analogue camcorders to date, but sales have been falling since peaking in the first half of the 1990s, hitting about 10 per cent of their peak last year. Retail prices have also been dropping, reflecting the slump in demand.
The Tokyo-based company plans to boost output of digital camcorders at its plants in Miyazaki and Oita prefectures after it stops making analogue models there. It will keep repair parts in stock for seven years after production has stopped.
Canon holds about 20 per cent of the global market for digital camcorders, while industry leader Sony Corp has around 40 per cent.
Shares of Canon were up 0.71 per cent at 5,670 yen in morning trade, in line with a 0.72 per cent rise in the Nikkei average.
Bureau Report
"The advantages that digital technology offers consumers make it the hands-down choice," Canon spokesman Richard Berger said.
Much like the still camera industry, the global video camera business is undergoing a rapid switch from analogue to digital as consumers opt for digital models that are lighter and offer more advanced functionality.
Canon expects its sales of digital camcorders to rise 44 per cent to 2.6 million units in 2004 and forecasts that digital models will account for 80 percent of industry-wide camcorder sales this year, up from 72 percent in 2003.
Canon has released 134 analogue camcorders to date, but sales have been falling since peaking in the first half of the 1990s, hitting about 10 per cent of their peak last year. Retail prices have also been dropping, reflecting the slump in demand.
The Tokyo-based company plans to boost output of digital camcorders at its plants in Miyazaki and Oita prefectures after it stops making analogue models there. It will keep repair parts in stock for seven years after production has stopped.
Canon holds about 20 per cent of the global market for digital camcorders, while industry leader Sony Corp has around 40 per cent.
Shares of Canon were up 0.71 per cent at 5,670 yen in morning trade, in line with a 0.72 per cent rise in the Nikkei average.
Bureau Report