Some Key Take-Aways from 2017 One Canon Event
I had an opportunity to attend the One Canon Event in Boca Raton this year and had some key takeaways that I would like to share. First, overall, Canon is very bullish about their business since most segments are up from last year. This News Byte will focus on Canon’s performance in 2016 and on some of their plans for the future. The next News Byte will focus on new Canon products and technologies that were demonstrated at the event which were quite impressive.
- Production Presses – in 2016 cut sheet toner device shipments in the US increased 32%, inkjet web press shipments increased 55%! Canon moving more to more demanding segments due to improvements in Inkjet image quality which Canon claims exceed the quality and color gamut of offset.
- CSA’s 2016 production printer business revenue increased by 104% over the previous year and profits were 117% of goal. Much of this was due to large increases in placements of ColorStream and i300 shipments where monthly page volumes are increasing, mean copies between failures (MCBF) are increasing, and an average of 97% uptime is being achieved.
- US Enterprise printer shipments increased 3%
- 2016 Worldwide revenue of $31.3B – 28% the Americas
- Office products represents 53% of total worldwide revenue, Imaging Products (including Inkjet) accounted for 32%
- Only Canon and IBM have been ranked within the top five patent holders 20 consecutive years, Canon being ranked #3 for many years including 2016 where Ricoh ranked 21, Xerox ranked 56, and Konica Minolta ranked 80
- Canon is continuing to focus and invest heavily in input device and showed output from a new 250-megapixel camera that was very impressive which they expect to open many new markets for them.
- Canon has the leading market share in production Inkjet in the US with 35% share in 2016 vs. 23% in 2015. Expect this business to grow into 2018 due to new markets for Chromera inks, the VPi300, Prostream launch, and expected launch of Voyager in 2018.
- LFS (Large Format Solutions) had a slight decline in revenue from 2015 but they exceeded their profit goals. LFS maintained their position in the Technical Documentation/CAD market despite the entry of HP’s Pagewide based products. Sales of the Colorwave 500 doubled in 2016 from 2015. LFS group has is the leading market share holder in the Technical Document/CAD market with 37% share. Technical Document/CAD revenue grew 13% from driven by growth in color. Since the CAD market is declining overall, Canon will focus on increasing business in the Graphics segment which was 22% of revenue in 2016 and planned grow to 48% of revenue by 2019
- Canon achieved a 26% share of the North American Flatbed market in 2016
It is very clear that Canon is focused heavily on solutions for their customers, offering far more than just output devices or on “feeds and speeds”. Canon’s financial performance in 2016 is impressive when considering the overall worldwide declines in printer shipments and in page volumes.