Canon Reduces Forecasts as Smartphones Start Replacing Cameras

Smart phones are starting to replace point and shoots cameras. Could these lower end sales slumps hurt higher end lines as well? Is it inconceivable that perhaps in the far future (say 10 years given the way technology moves) that most filmmaking with occur on a smart device?

Canon Inc. (7751), the world’s largest camera maker, cut its full-year profit and sales forecasts as consumers’ penchant for using smartphones such as Apple Inc. (AAPL)’s iPhone to click pictures hurt demand for the company’s products.

Canon lowered its sales forecast for Powershot, Ixus and other compact models by 9.5 percent to 19 million units, and for professional-grade EOS models by 4.3 percent to 8.8 million, the company said in a statement yesterday. The profit forecast was cut 6.4 percent to 234 billion yen ($2.9 billion) as economic turmoil in Europe and slowing demand in emerging markets also hurt demand, Tokyo-based Canon said.

Chief Executive Officer Fujio Mitarai, 77, has slashed compact-camera sales forecast twice since taking over the top job in March as Apple and Samsung Electronics Inc. (005930) unveiled phones that can take high-definition photos and videos. Canon, Sony Corp. (6758) and Nikon Corp. (7731) are introducing new products to win back customers in a segment that’s projected to have the worst demand since 2009.

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