As compact cameras become trendy again, demand has exceeded the supply of existing models, sending used prices skyrocketing. That’s particularly true for cameras like the Canon G7X Mark III, which is several years old but thanks to social media trends is in high demand. But a recent interview with Canon chairman and CEO, Fujio Mitarai, sheds light on why Canon isn’t just flipping a switch to start making those compacts again.
Canon closed its factory in Zhuhai, China, in 2022 due in part to lower demand as well as the impact of COVID-19. But the interview with Nikkei Asia sheds some light on the impact of that closure – that factory was where Canon made its compact cameras.
Now, according to the interview with Mitarai, Canon is considering outsourcing the assembly of some budget camera models, as well as printers. "We want to make printers and low-end digital camera models that are produced in Asia fabless (by outsourcing the manufacturing),” Mitarai said.
The potential move, the CEO said, could help the company respond as the market fluctuates while still being able to sell some lower-demand products. According to the interview, the development and main components would remain part of Canon’s in-house operations, but the assembly would be outsourced.
Canon is only considering shifting some assembly to a third party in China, and hasn’t said for sure if such a move will happen or when. The company also didn’t clarify what type of cameras would be outsourced beyond “low-end camera models,” which could mean budget mirrorless or it could mean affordable compact cameras.
If Canon is able to revamp its point-and-shoot production, it could help meet a growing demand for compact cameras as Gen Z drives a trend to capture memories without being distracted by a smartphone. The resurging popularity of the Canon G7X series is also fueled by its zoom lens, which tends to be more flattering than a smartphone’s wide-angle distortion. As compacts become popular again, the prices have soared for high-end models like the Fujifilm X100VI, while the G7X series has gone out of stock on Canon’s website.
While outsourcing assembly could be good news for budget camera seekers, the move hasn’t always been a popular one among photographers. Outsourcing tends to raise concerns over quality. For example, when Fujifilm was rumored to outsource the production of the X-A3, some suggested that move was responsible for some of the camera's complaints. The good news is that keeping the development of main components like sensors and processors in-house should help maintain the brand’s reputation for image quality.
Currently, Canon cameras are produced in the company’s facilities in Japan. Mitarai says the company is only considering outsourcing assembly on some products; an official decision has not yet been announced.
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