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Canon Inc.
Sales
$30
billion
Business Description
Canon’s (www.canon.com)
products are divided into the following three product groups: business
machines, cameras, and optical and other products.
Business Machines
The business machines product group is divided into three sub-groups
consisting of office imaging products, computer peripherals and business
information systems.
Office imaging products
Canon manufactures, markets and services a wide range of office network
digital MFDs, color network digital MFD’s, office copying machines,
personal-use copying machines and full-color copying machines.
The office-use market is subject to rapid change, and in fiscal 2003,
customer preferences has shifted from copying machines to digital MFDs, as
well as from monochrome to color products. To respond to these trends, Canon
has been strengthening its lineup of digital MFDs in the imageRUNNER (iR)
series, which have versatile functions, such as copying, printing, scanning,
faxing and data-sharing functions on the Internet and intranets. Canon is
also marketing diverse expansion modules, software and business solutions to
increase customer value. For the development of MFDs, Canon makes effective
use of wide range of technologies from the fields of optics, mechatronics,
electronic photo processing, chemical materials and image processing.
Canon’s MFDs are differentiated chiefly by the use of leading-edge System On
a Chip technology in the imageRUNNER controller, which acts as the “brains”
of networked MFDs. The controller provides easy integration with customers’
IT environments together with speedy, high-quality image processing. This
boosts office productivity, thereby garnering acclaim from business
customers. Canon also introduced new MFD models throughout fiscal 2003,
including the Color imageRUNNER C3200 (iR C3200), the first color offerings
in the imageRUNNER series, which achieved healthy sales.
Canon has a powerful line of full-color copying machines and color digital
MFDs for users ranging from professional graphic designers to business
offices. The trend in printing industry is gradually moving away from
large-lot printing using expensive machinery to small-lot printing on demand
and personalized printing. Canon’s high-end MFDs and color digital MFDs can
be applied to the print on demand market. In addition, Canon aims to respond
to the growing demand for color imaging for business needs with products
using its renowned S Toner, featuring spherical particles and a microscopic
wax-based structure, and our oil-less fixing engine.
Canon has dominant market share in monochrome copying machines for personal
use. Demand for analog products is continuing in Asia, Russia and Eastern
Europe. Canon also introduced digital products in the Americas and in Europe
in response to the shift in demand toward digital products.
The office imaging products category also includes the related sales of
paper and chemicals, service charges and sales of replacement parts.
Computer peripherals
Computer peripherals include laser beam printers, inkjet printers and
scanners.
Developed and fostered by Canon, laser beam printers are standard output
peripherals for offices. Canon’s laser beam printers are relatively small in
size and have high-quality printing capabilities attributable to Canon’s
expertise in laser beam printing and plain paper copying technologies.
Canon’s adoption of a user-replaceable toner cartridge system containing
optical components makes its laser beam printers easy to maintain. Most of
Canon laser beam printer sales are on an OEM basis. Canon also distributes
Canon brand laser beam printers in Japan, Europe and Oceania.
As the inventor of bubble jet printing technology, Canon believes it
continues to provide customers with the best performance the technology has
to offer. Canon provides high-performance and high value added models both
in single-function printers and multi-function printers. In response to
heated competition in the inkjet printer segment, Canon launched several new
models in fiscal 2003. Particularly noteworthy were the bubble jet printers
supporting the PictBridge digital camera-printer communications standard,
which were released in the second half of the year. These new models
incorporated New MicroFine Droplet Technology, which has boosted image
quality and print speed over those offered on previous models. The keys to a
successful printer are speed, image quality and paper handling capabilities.
Although ranked high among the leaders in all three categories, Canon has
targeted each category for improvements. Additionally, the PictBridge system
has been marked for enhancement, and future printers will offer even
stronger integration with digital cameras.
Canon markets a wide variety of products for a spectrum of user needs,
including image scanners in CanoScan LiDE series using Contact Image Sensor,
scanners with charge-coupled devices for high resolution that can also scan
film in the CanoScan series, and film scanners that handle both 35 mm film
and advanced photo system cartridge. Canon has deployed its expertise to
develop space-saving, energy-efficient scanners, as well as easy PC
connection via universal serial bus interface. However, since peaking in
2000, the scanner market has continued to shrink at a rate of 10% to 20% per
year. Under the prevailing highly competitive conditions, it is necessary
for Canon to attain a high market share. To achieve that goal, Canon has
successfully introduced several new scanner models.
Business information systems
Business information systems primarily consist of micrographic equipment,
personal computers, calculators, document scanners and work stations.
With the movement toward digitalization, the need to scan documents into
text data or image data is expanding. Canon’s document scanners rapidly and
efficiently digitize large volumes of information on paper. Canon offers a
wide range of scanner models, including color capable compact sheet-fed
types and a flatbed model suitable for book-type documents. Canon also
offers a hybrid model that can create microfilm records while digitizing the
information. Canon’s diverse lineup seeks to meet increased demands for
digitizing office documents to share across Internet or intranet platforms
or to capture data from forms with optical character recognition.
Canon’s calculator operations, from development to production and marketing,
are centered in Hong Kong. The Canon tradition of technological innovation
has been inherited by its personal information products, from calculators
with printers to electronic dictionaries. Canon continues to develop
distinct, appealing personal information products that reflect trends and
demand.
The work stations and personal computers sold by Canon are manufactured by
third parties under the manufacturers’ own brand names.
Cameras
Canon manufactures and markets digital cameras and film cameras. Canon also
manufactures and markets digital video camcorders, lenses, and various
camera accessories.
Digital cameras have become common tools to input images into PCs. In
addition to ensuring the best possible image quality throughout its product
lineup, Canon offers digital compact cameras that are easy to use and to
carry. In 2003, the compact digital camera market continued to show
significant growth. Canon introduced six new PowerShot series and three
Digital ELPH series cameras and has finally reached the top position in the
industry, in unit sales basis.
Canon’s digital single-lens reflex cameras are designed to meet needs from
amateurs to professionals. These cameras incorporate innovative technologies
such as 45-point area auto-focus, eye-controlled auto-focus, depth-of-field
control, Base-stored Image Sensor (BASIS), Complementary Metal Oxide
Semiconductor (CMOS) imaging sensors, Digital Imaging Processor (DIGIC), and
a fully electronic mount system to transmit data between the lens and the
camera chassis. Particularly in the digital single-lens reflex camera
segment, popular new product offerings including the EOS 10D and EOS Digital
Rebel (EOS 300D Digital) bolstered Canon’s dominant position worldwide.
Canon’s digital single-lens reflex cameras feature the company’s
proprietary, CMOS imaging sensors to offer advantages like low image noise,
and low power consumption. Both the sensor technology, and the cameras
themselves, won numerous awards in the respective industries.
Canon also offers a comprehensive line-up of conventional film cameras to
satisfy the needs of users everywhere, from models with high-performance
zoom lenses to models with large enhanced viewfinders and full water
resistance. Hindered by the surging popularity of digital cameras, the
continued shrinking of the conventional film camera market has been a recent
trend. Canon’s introduction of new models in fiscal 2003, however, enabled
it to retain its position firmly atop this market worldwide and to record a
healthy level of profitability. With a cautious eye on market trends, Canon
will continue to develop new products and maintain a firm commitment to the
film camera market.
In the camera lens segment, technological developments, including
diffractive optical elements, image stabilizer and ultrasonic motor, have
helped Canon to maintain a technical lead over other makers. Canon offers
over 50 lenses in the EF series. These high-quality, high-performance lenses
provide outstanding performance with digital cameras as well as
silver-halide cameras, greatly contributing to Canon’s sales. Due to market
expansion of digital single-lens reflex cameras, sales of middle to
high-class lenses have been increasing. The introduction of new lenses
offering optimum performance with Canon’s digital single-lens reflex cameras
is planned for 2004.
Canon also provides full line-up video camcorders from versatile, compact
and stylish models to its flagship models for professionals. Canon’s video
camcorders incorporate the same optical technologies and digital signal
processing technology as its world-renowned cameras, and come equipped with
optical image stabilizers and its one-chip video integrated circuit
signal-processing system large scale integration to ensure high image
quality. Canon’s video camcorders are favored by many users for its optical
image stabilizer, and red-green-blue primary color filters. The adoption of
megapixel charge coupled devices, secure digital memory cards and universal
serial bus connectivity offers a wealth of possibilities for the creation
and management of still images, as well as video. In addition, together with
DV Messenger software, Canon video camcorders can be used to communicate via
the Internet with real-time sound and images. the worldwide digital video
camcorder market, Canon’s eight new products have increased its share in the
market. According to GfK Marketing Services Japan Ltd., a market research
company, Canon’s Optura 300 (MVX 10i) maintained the leading position in
terms of units of sales in the Japanese market for the three months from
October through December of fiscal 2003. The Optura was rated highly for its
advanced DIGIC DV digital imaging processor, which improves both digital
movie quality and digital still quality.
Since Canon introduced the new PictBridge-equipped CP series compact photo
printers in fiscal 2003, the market has shown very positive signs of
accepting this distinctive new printer category. Canon’s CP series of
dye-sublimation photo printers allows users to print digital photos without
having to use a PC, thereby creating a new photo-processing culture for
digital camera users. In fiscal 2004, Canon aims to show strong leadership
and presence in this new printer market.
Optical and other products
Canon’s optical and other products includes semiconductor production
equipment, broadcasting lenses, medical equipment and electronic components.
Semiconductor production equipment includes steppers and mask aligners.
Steppers are used to expose circuits on silicon substrates. Canon has
commercialized a Krypton Fluoride excimer-laser steppers and an Argon
Fluoride excimer-laser scanning steppers. At the top of its class, the new
Argon Fluoride excimer-laser scanning stepper makes possible top-level
throughput rates of over 140 wph (wafers per hour) for 300 mm wafers. Canon
announced in Japan in July, 2003 that it had begun accepting purchase orders
for its latest 300 mm-compatible lithography tool—the Canon FPA-6000ES6—a
Krypton Fluoride scanning stepper enabling volume production at the 100 nm
process node.
Mask aligners are used to produce liquid crystal displays, or LCDs, and
Canon’s model for large-sized LCD substrates are sold particularly well in
line with increased demand for large flat panels for PC display and LCD
televisions. Canon, together with nine other Japanese semiconductor-industry
companies, have formed the Extreme Ultraviolet Lithography System
Development Association. The consortium aims to develop key technology for
next-generation lithography.
Canon is the world leader in television broadcasting lenses, which are used
to capture images from sports and news events, concerts and studio
broadcasts.
Medical equipment sold by Canon includes X-ray cameras, retinal cameras,
autofractmeters and image-processing equipments for computerized diagnostic
systems. Canon’s pioneering digital radiography system takes X-ray
photography and medical diagnosis into the digital age.
Other products sold by Canon include electronic components, such as magnetic
heads for audio and video tape recorders and micro-motors for printers and
other components, which are sold primarily to equipment manufacturers. Canon
has also been developing a cost efficient solar-power system that
incorporates amorphous silicon technology which is used in Canon’s high-end
monochrome copying machines.
Ticker
CAJ
Fax Machines
Printers
Copiers
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