One of the beauties of modern smartphones is that they remove the need to carry other pocket devices. Unfortunately for both Canon and Nintendo, that’s starting to hit the bottom line.
Both firms have reduced their forecast revenue and profits figures for this year, and smartphones are getting the blame in both cases.
Canon says it now expects its profits to be 6.4 percent lower than originally anticipated. It now believes its actual sales numbers for compact digital cameras will be 9.5 percent lower than forecast. Professional standard cameras will take a lesser hit, with the expected shortfall at 4.3 percent. It’s the second time bosses have cut forecasts since March.
The company specifically said that while the economy was to blame, the increasing use of smartphones was also hurting. The figures certainly seem to bear that out: it’s clear that people who simply want to point and click to get a decent shot are more likely to make do with a smartphone than those wanting professional shots.
Meanwhile Nintendo has cut its predicted sales of the 3DS handheld console by 5.4 percent, and 3DS software sales by 4.1 percent. Nintendo didn’t specifically blame smartphones, but the company’s CEO did admit that the company needs to make sure it offers games that are drastically different from what’s available on smartphones and tablets.
Nintendo may feel the effect the most as the DS range is largely aimed at a more casual gaming audience that wants games it can pick up and play without a steep learning curve, often without the need for particularly stunning graphics and audio.
Unlike Canon, which relies almost entirely on cameras, the 3DS issues are only a small part of Nintendo’s woes. Overall it expects to profits to be 70 percent lower than originally forecast for this year. That’s largely the result of unfavorable currency exchange rates, though it’s also feeling the pain of a decision to sell the Wii U console at a loss now in the hope of boosting software sales later.