Canon to Outsource Low End Camera Manufacturing

[docsmith]

\'Nikki also mentions that Canon hopes to avoid supply chain disruptions and geopolitical risks\'

This is a huge point. The pandemic taught a lot of companies that it is a bad choice to have all your manufacturing eggs in one basket and many companies are diversifying production as a result. Some big retailers like Costco are now looking at the robustness of supply and manufacturing when considering new suppliers. Without reading too much into it, this is a smart move for Canon.

As soon as I read this bit in the original article, it just makes sense. Plus, I hear the attraction of manufacturing in China is not the same as it once was. Labor costs are catching up, robotics are diminishing the benefit of low labor costs.... in addition to the geopolitical risks.

 

[neuroanatomist]

Of course, I don’t think Canon will relocate its lens manufacturing to Southeast Asia (which is the part of Canon products I hope could see a price drop).

You're technically correct that it's not going to happen in the future, because it has already happened. Malaysia is part of Southeast Asia, and that's where the RF 50/1.8 is made:



Taiwan is East Asia rather than Southeast Asia, and my RF 28/2.8 and RF 24/1.8 were made there. The point is that Canon is already manufacturing cheaper lenses in countries with lower labor costs than Japan, which is part of why those lenses are cheaper. Having the manufacturing done by a 3rd party as a further cost-cutting measure for low-end lenses is not an unreasonable next step.

 

[usern4cr]

I recall reading that, political considerations aside, some companies were moving manufacturing from China to Vietnam, because the later has lower labor costs.

It's interesting that Taiwan has started some big industry leading chip fab plants here in the US, since there is so much worry/expectation about the approaching Chinese. I could only hope that more Taiwanese chip/industry giants choose to move some/enough of their operations into the US (and other stable countries) before they have to change the flags on their flagpoles and school walls.

 

[David - Sydney]

It's interesting that Taiwan has started some big industry leading chip fab plants here in the US, since there is so much worry/expectation about the approaching Chinese. I could only hope that more Taiwanese chip/industry giants choose to move some/enough of their operations into the US (and other stable countries) before they have to change the flags on their flagpoles and school walls.

Those new fabs in us/europe and Japan etc have been due to geopolitical sovereign risk reduction. Government investments post COVID supply chain disruptions to have domestic capability even at a higher local cost. Intel/tmsc wouldn’t have setup all these fabs without the government support.
Tariffs would reduce a lot of price difference at the cost to the local consumer.
There is a shortage of capacity at the bleeding edge due to Apple/nvidia paying for capacity but there should be global surplus capacity at 5+ nm within a couple of years.

 

[David_B]

"I don't see people walking around with cameras"

I don't see people walking around much with laptops either unless in coffee shops etc. Not things many people care to do in these modern times on the street. Flaunt electronics on busy streets with ones eyeball pasted to an EVF. My travel camera is never carried in plain sight. I rarely pull out my expensive smart phone walking on the street either when traveling. It could get snatched right from my hands. As many do. Only in airports, restaurants etc will I start peeping my phone when traveling.

Laptops serve a different purpose to phones and cameras. Occcasionally, just occassionally, I see people pull out tablets to take photos in tourist settings. But cameras on shoulders? Absolutely. Smart phones? all the time. Aside from large cameras being awkward, I would encourage you to be less afraid of what might be or might happen. The world isn't out to get you. Well maybe.

 

[David_B]

in 10 out of 11 months, net units were higher in 2024 than they were in 2023.

I'm not sure I see your point.

shipments are NOT declining year on year, it's always normal for shipments to peak in October, as that's when the bulk of things gets shipped from Japan for the November and December sales period.

1 year is not enough for a trend to develop - 2016/2017 was also a "line up" for FL (ie compact cameras) - plus 9% is small compared to early naughties.

 

[AlanF]

1 year is not enough for a trend to develop - 2016/2017 was also a "line up" for FL (ie compact cameras) - plus 9% is small compared to early naughties.

Some misspellings do raise a naughty laugh.

 

[David_B]

Some misspellings do raise a naughty laugh.

The naughty noughties, when a fun time was had by all

 

[neuroanatomist]

Some misspellings do raise a naughty laugh.

At least it was closer than "sagiterial" lines on an MTF chart.

 

[vladk]

Outsourcing means manufacturing by a third party. This is not outsourcing.