Canon(US:CAJPY) Di Yi Cai Jing·2025-11-29 03:29Core Viewpoint - The Canon printer factory in Zhongshan has ceased operations due to intensified competition in the Chinese printer market, the rise of domestic brands, the trend towards paperless offices, and strategic adjustments by Canon [2][4][7]. Group 1: Factory Closure Details - The Zhongshan Canon printer factory officially stopped production on November 21, with employees temporarily on leave until November 28 [3][6]. - The factory is currently settling accounts with employees and suppliers, and a compensation plan for employees is expected to be announced soon [3][6]. - The factory has been facing operational difficulties due to a shrinking market for laser printers and increased competition from domestic brands [4][5]. Group 2: Market Dynamics - According to IDC, the shipment volume of A4 laser printing devices in China is projected to decline by 5% year-on-year in the first half of 2025, while A3 laser printing devices are expected to drop by 10% [4]. - The market share of domestic brands in A4 laser printers has surged from 16% in 2010 to 42% in 2024, while Canon's market share in China is only 6.4% despite holding 22.9% globally [4][7]. - The competitive pressure in the laser printer market has increased significantly, particularly in the low-end segment, where Canon faces stiff competition from brands like Pantum and Lenovo [7][8]. Group 3: Strategic Shifts - Canon has been shifting its strategic focus towards higher-margin businesses such as medical imaging and semiconductor equipment, leading to a reduction in its printer production capacity in China [7][8]. - The company has already begun transferring some of its printer production capacity to its factories in Vietnam [7][8]. - The trend towards paperless offices, driven by the adoption of various digital platforms, is contributing to the decline in demand for printers [8][9].