Canon stated it expects higher procurement costs for components next year and plans to offset those increases through price increases. The company disclosed this during a Q&A session following its FY2026 Q3 financial results.
Canon faces shortages of circuit boards and electronic components affecting its Printing and Imaging segments. The company said it is "using every possible means to secure the quantities we need for next year" but anticipates rising costs as companies compete for shrinking supplies of flash memory amid increased demand from AI data centers.
"For components that are in short supply, we are using every possible means to secure the quantities we need for next year. As a result, we expect higher procurement costs, but our policy is to offset those increases through price increases from next year onward," Canon stated.
The camera maker added it will "continue to make decisions on passing on costs from a long-term perspective, while considering the potential impact on sales volumes and balancing that against profitability."
Canon noted it does not expect memory and raw materials prices to decline in 2027. The company projected a significantly lower operating profit ratio in its Imaging business in Q4, citing higher memory costs and expenses from geopolitical strife in the Middle East. "At this point, we have not been able to fully pass these higher costs on through pricing," Canon said. "If these higher costs persist next year, we will absorb them through price increases."
Fujifilm raised the issue of rising raw materials prices in August financial reporting. Nikon and Sony have also cited higher memory costs affecting their imaging businesses. Photographers faced substantial price increases last year from tariff policies and increased memory card and SSD costs.