Chumma wrote:
Canons largest market is Europe and the second largest market is the U.S., and both are experiencing economic slowdown. To compensate the decline in demand, Canon is offering the rebates. Canon already makes huge profit margins on their photographic products and they are just giving a small break.
Even prices on eBay are falling......a 'mint' 40D sold not long ago for Ģ205....amazing value. Apart from the rich, the normal person is more worried about utility bills, the next food bill etc etc etc rather than getting the next 'must have' bit of consumer electronics. And worrying whether the Eurozone will go pear shaped early next year.
If that happens everyone will have serious problems.....that could easily drag down the UK and USA economies big time....followed by the economies such as China and Japan that feed those markets.
Maybe Canon is trying to make hay while there is still some sunshine left!!
If one thinks about it....we the potential buyers have the upper hand at last...the big companies have to sell to survive...but we don't have to buy...it makes no difference to us. Think about it!
The more we resist the latest 'upgrade' the cheaper that upgrade will become.
Not quite... just look at some of the "lower end" L lenses like the 17-40 and 70-200 f4, they are still over $700, just a couple years ago they were right around $550. You can extrapolate that out as lenses are more expensive, they are routinely 200-500$ more than just a couple years ago.
They are replacing every single thing that they put on sale.
They are going to release the next version of each one, therefore plummeting the value and they have to sell them off now...
Or perhaps it's incentive to have retailers sell off current stock to order more...or maybe some end of year business that businesses do for their taxes...who the hell knows, but I don't think it has a thing to do with "being threatened by 4/3"...
Canon is projecting 56 billion yen shortfall in revenue in 2011 compared to 2010 (1.5%). To deal with that, one strategy they are following is Promote sales expansion, employing tailored strategies by product and by region.
I think the recent price reductions in selected regions is the result of this strategy.
InternetJunky wrote:
I'm more curious why the Canadian prices aren't dropping.
eg. 135L f/2 $900 US, $1240 Canadian. Current conversion rates should give a US price of $1200. $300 difference!
Canon Canada has traditionally been slow to respond to price changes in the US market. For low volume items like a 135L it probably doesn't really matter to them, but for something like DRebel kits, or even the 5DII, there is more incentive to keep prices competitive. While I haven't checked, I suspect they're fairly close.
As for why we're seeing the US price drops... I'll echo a couple other posts and peg it on Canon USA trying to hit end of year targets. Every large company sets yearly sales goals and it's possible that Canon USA is coming up a bit short. So, with the Christmas shopping period falling conveniently at the end of the year, dropping prices on select items is a good way to encourage fence sitters to commit.
Edit: Chumma beat me to it with some actual numbers - cool.
A few weeks ago, had I seen the S95 price for $230, I would have bought one for sure...
BluesWest wrote:
Yes! In fact, I suggest we resist until the upgrade prices fall to zero! Then, we will get all the camera gear we want for free...
John
Then the company will go bankrupt...but while they are making huge profits there is scope for consumer resistance. Which will come anyway as most people seem to have an ever smaller disposable income....although it might be different in the US.
Itīs easy. All those "bargain prices" still mean that they do big profits.
Itīs old stuff. Developing costs are already in. Do you really belive a 200 2.0 costs as much in production as an ordinary car?. Do you belive an I-pad or phone costs (given example) a 4rth of its sales price. I do not. A new "standard" lens sold 10.000 times brings back all costs of developing and production, I guess. After that itīs produced at $ 50 but sold at 500.
Every jeans you wear is produced at $ 2-8 and after 2 or three companies added their "value", your local store buy it for ten and offers it at a "bargain" of 50 to you (here in germany). If they do not sell it, they make a special of 40 and a special rest sales of 25 and still earn 15.
Why should it be different with cameras or gear?
Does anyone really belive that the trepod mount of an 70-200 4.0 L IS USM "costs" 15% of the lens? Not me. Its an 3$ product, if produced 10.000 times. And a lost plastic lens cover is charged at 30 ? The lens was 300. It is just a 20 pence plastic cover, offered by "nonames" at 10 (what stil means 5.000 % profit).
Ralph, iPhone and iPad costs have been pegged. Have a google. Iirc It's a quarter to a third in the case of the lower end models. And that's parts, not r/d
Ralph Conway wrote:
Itīs easy. All those "bargain prices" still mean that they do big profits.
Itīs old stuff. Developing costs are already in. Do you really belive a 200 2.0 costs as much in production as an ordinary car?. Do you belive an I-pad or phone costs (given example) a 4rth of its sales price. I do not. A new "standard" lens sold 10.000 times brings back all costs of developing and production, I guess. After that itīs produced at $ 50 but sold at 500.
Every jeans you wear is produced at $ 2-8 and after 2 or three companies added their "value", your local store buy it for ten and offers it at a "bargain" of 50 to you (here in germany). If they do not sell it, they make a special of 40 and a special rest sales of 25 and still earn 15.
Why should it be different with cameras or gear?
Does anyone really belive that the trepod mount of an 70-200 4.0 L IS USM "costs" 15% of the lens? Not me. Its an 3$ product, if produced 10.000 times. And a lost plastic lens cover is charged at 30 ? The lens was 300. It is just a 20 pence plastic cover, offered by "nonames" at 10 (what stil means 5.000 % profit).
Not quite... just look at some of the "lower end" L lenses like the 17-40 and 70-200 f4, they are still over $700, just a couple years ago they were right around $550. You can extrapolate that out as lenses are more expensive, they are routinely 200-500$ more than just a couple years ago.
The 17-40 was never "around $550" a few years ago. The cheapest was $630 and about 3 years ago...
Pixel1970 wrote:
Geez, where'd you get that price?
Bh, and Canoga had fire sale prices for a limited period of time.
Adorns had a deal that you could get it for under 1900 if you use like mr buy or buy butt something like that.
Well, I was doing a trade in so that kept my hands tied. The retail price of my 70-200 was around $2200 (after the rebate...boo!) but I made a few hundred on the item I traded in because I got it for a steal so in the end, my actual out of pocket expense for the 70-200 2.8 IS II was a little over $1900. I'm happy.
I think it's simple year end accounting to meet revenue targets. Many items are on fire sale during this season. From cars to fridges to cell phone plans.
Asthax wrote:
The 17-40 was never "around $550" a few years ago. The cheapest was $630 and about 3 years ago...
The only L I can recall recently being around $550 is the 70-200/4, and it's been more than a few years since that was the case. Circa '05/'06. (Though CPW has it at $550 with a rebate in late 2008.)
