Volume. Actually, Canon does make money selling cameras:
http://www.photointer.com/pageset/page16.html "Camera segment sales were �211,392 million, up 20.8%. Silver-based photographic cameras are cited as continuing to decrease due to market tilt toward digital cameras and low pricing of silver-based cameras. Canon brought in 7 new digital cameras to strengthen its IXY and PowerShot lines. Digital video camera sales in the United Sates and in other markets are said selling well. Segment sales accounted for 13% of total company sales. Earnings on sales were �28,055 million, up 83.3%. Camera sales that stood at �211,392 million for the first half of the fiscal year were 34% by silver-based cameras, 45% by digital still cameras and 23% by video cameras." From: Robert Woerner Remember, Canon and Nikon lose money on their digital cameras(how the heck do they stay in business anyway??).
