The Chips are Down

[marknorton]

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Leica's 2005-2006 Annual Report has recently been put on the web-site and offers two comments in the risk analysis section which are interesting:

 

"The market for analogue cameras has been in decline for years, with no end to the trend in sight. In the future, analogue cameras will be in demand in special niche markets only. On the other hand the fast-growing digital market is characterised by intense competition among the offerors and declining margins".

 

"The process of digitalisation constitutes a great challenge for Leica Camera Group. The Company has identified digital technologies as the key to corporate success and the timely market introduction of products as essential for the continuation of the Company as a going concern".

 

No surprises of course, but a stark assessment of the market Leica finds itself in. Anyone still think there will ever be another film Leica?

 

Elsewhere, the report acknowledges Panasonic as a development partner and talks about new partnerships with other (unnamed) partners. That would be Jenoptik then...

[Guest guy_mancuso]

The good news is they realize the growing market and where it is going. The bad news is film is dead in there mind. i really think the M7 and R9 is the last and will be offered as a La carte item or whatever they call that.

 

But for folks like me that need digital for there client base this is only good news.

 

One thing I realized almost 10 years ago was get on the digital train or get left at the station.

[robert_parker]

I agree digital is the only way to go and it makes commercial sense not to produce more film cameras, other than as special editions, when the reality is that the R&D money could be better spent on digital.

 

Probably the big thing for someone somewhere to hold onto is the fact that Leica make superb lenses and in a way, that's what people are buying - if they can get something in the small handheld / high end compact market, then they've got something to look forward to, as there will always be bigger margins for the best and people willing to pay them.

 

After all, that's what they've been doing with film cameras for the last 50 years...

[marknorton]

Continuing... new press release...

 

Dear Leica friends,

 

In the course of the General Meeting of Leica Camera AG (ISIN DE000A0EPU98) held today, Dr. Klaus Baumueller, Kuesnacht, Switzerland, Dr. Andreas Kaufmann, Salzburg, Austria, Wulf Matthias, Koenigstein, Germany, and Patrick Thomas, Paris, France, have been elected members of the Supervisory Board as shareholders’ representatives. Subsequently, in the constituent meeting of the Supervisory Board of Leica Camera AG, Dr. Andreas Kaufmann and Wulf Matthias have been elected Chairman and Deputy Chairman, respectively. The former Chairman of the Supervisory Board, Dr. Hans Friderichs, has not stood as a candidate for re-election to the Supervisory Board.

 

 

With best regards,

Leica Camera AG

Corporate Communications

http://www.leica-camera.com/

 

From what I can see, Klaus Baumueller is with CVC Capital Partners, Andreas Kaufmann is CEO of ACM Projektenwicklung, Wulf Matthias is with Credite-Suisse and Patrick Thomas is CEO of Hermes.

 

Obviously the principle shareholders are keen to make sure their investment in the company thrives...

[albertwang]

Smart move. Leica is pushing forward with digital where it is at!

[marknorton]

Here is the statement made today by Dr Spichtig, Chairman of the Management Board at Leica Camera AG at the Shareholder's meeting held today. I'm encouraged.

 

http://www.leica-camera.com/unternehmen/presse/data/04963/index_e.html

[marknorton]

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This is the bit that matters most:

 

"Undoubtedly, the innovation with the greatest potential for the company is the development of a digital rangefinder camera. We are planning to launch it in the second half of this year. We have already announced that it will be a ‘real‘ Leica rangefinder camera in terms of weight, size, material and design, with the decisive difference that it will take digital photos. All the originality and fascination of Leica M photography will then be available to the digital world. It was important for us to follow the principle of system compatibility. Nearly all the lenses of the Leica M system ever since its introduction in 1954 can also be used for digital photography.

 

However, I will not give any further details on the name, price and availability of the product today. We have learned from past experience and only make statements when they can be relied upon a hundred per cent. However, I can assure you already that the product we are creating is something really special and will give the company a lot of tailwind. At the present there are no more points in the product development process that seem unsolvable. We are well on the way to being ready to market a technically extremely sophisticated product."

 

Hurrah!

[Guest guy_mancuso]

Now that had some real meat in it.

 

Damn I may have to call my dealer and get my name on the list. i will be stroking out when it is released and i don't have one yet.

[marknorton]

He does also say that they are carrying out feasability studies on future R digital bodies, but that's a long way from a committed product IMHO. They are obviously planning something big on the sports optics front and they need to get the 4/3 thing off the ground.

[humanized_form]

i'm pretty excited about the Digital M and feel it's worth spending the $5k to finally have a digital camera that i will want to use. i love my M7 and if the Digital M is anything close to it i will be very happy.

 

i''ve been tempted by the canon 5d and nikon d200 as they are smart buys.... but for me this isn't about what is the best value. the camera has to feel right and make me want to use it. i don't get that vibe from the dslr computer boxes.

 

bring on the Digital M.

[Guest guy_mancuso]

He does also say that they are carrying out feasability studies on future R digital bodies, but that's a long way from a committed product IMHO. They are obviously planning something big on the sports optics front and they need to get the 4/3 thing off the ground.

 

 

Well for me that is great news as you now i have a ton invested in the R system. I will just take that comment as a go for me and can relax a little about my investment continuing forward. I don't expect anything until the M is firmly in the market but a couple lenses would be nice to have a 135 f2 apo and a 80mm Tilt and shift are the most pressing ones for me. But I like there new style and approach coming , they seem like they have some fire going and that is only good news for us.

[ho_co]

I think an equally important point is this one:

 

"The new Leica shops in Tokyo and Berlin are true flagships for this development. Leica Ginza is the first international shop to be directly established by our Japanese subsidiary and thus by the Group. Sales have been good ever since it opened on April 21st, 2006. Another important aspect, however, is its communicative effect in the relevant Japanese market, which also benefits the independent trade partners, who continue to be important for us.

 

"On June 16th, Leica Berlin opened at Fasanenstrasse 71, in the immediate vicinity of the Kurfürstendamm in one of Berlin’s most attractive shopping streets. Together with Hamburg dealer Martin Meister, we have achieved a first-class Leica brand presence in the German capital. I would like to take this opportunity to thank him for his enterprise and willingness to take on a pioneering role. This shop, it must be emphasized, is also the beginning of an international shop concept. Together with the French interior architect Gilles Leborgne, we are presenting the brand to reflect Leica’s value, authenticity and uniqueness. New customers and – I am told – also customers of many years feel at home in the new ambience, where they can experience excellent advice, product presence and top-level service. If you happen to be in Tokyo or Berlin, take the opportunity to visit one of these shops to get an impression."

 

 

If your dealers aren't representing your product well, do it yourself! Same concept as the Apple Stores, and an excellent move! Most photo dealers today couldn't care less about the product, they just want 'turn.' They want a product that is pre-sold and don't want to work for the sale.

 

--HC

[marknorton]

Agreed, the only way the dealers can justify their markups is by offering loaner cameras and lenses. If all they want to do is shift product, I'll buy from Hong Kong and save 25%.

[Bob Ross]

Here is the statement made today by Dr Spichtig, Chairman of the Management Board at Leica Camera AG at the Shareholder's meeting held today. I'm encouraged.

 

http://www.leica-camera.com/unternehmen/presse/data/04963/index_e.html

Thanks for the link Mark. I found it refreshing especially in comparison to speaches I have read out of Japan. It was also nice to learn a new word "mechatronics"....

Think good thoughts for Ulrich Ehmes, mgr. of the Famalicao, Portugal factory, because that is probably where our M8s are being assembled. I remember reading that the M7 was beta tested out of that location and that production of the M7 bodies was done there. It was also good to read that they do outside contracts, as another source of income. They seem to have a grip, a plan and optimism. Their new approach of introducting new product contiuously should keep this forum lively...

Bob

[masjah]

But also the CEO says:

 

"Despite all the focusing on the digital products which are crucially important for the company’s future, we will continue to work on the further development of our analog products. Our position as highly specialized vendor gives us the possibility of offering enthusiasts of classic, particularly emotional photography on silver halide film attractive products for a long time to come. People who consciously opt for analog photography want the best lenses and cameras. And this is exactly what Leica has to offer."

 

Couldn't agree more.

[Guest flatfour]

Leica have just caught the bus in time. I'm hopeful that their search always for the best lenses and design will take them to the front of the top grade of digital cameras. There are plenty of people who went digital too early and their photography has not satisfied them as much as their film output. Now digital can produce almost as good as the best film so that gap has almost closed - but not quite.

[marknorton]

The "Made in Germany" moniker is obviously important to them. I visited the Porsche factory in Leipzig last year where they make the Cayenne. I say "make", but really what they do is install the (German made) engine into a completed bodyshell made by VW in Bratislava. But still, they like to think it's "Made in Germany".

 

It seems clear that most of what Solms does is lens production. This is the difficult bit. By comparison, mechanical camera production, even with a bit of electronics thrown in, quite a lot in the case of the M7, is nevertheless a known art. Portugal makes the sports optics and certain camera accoessories such as the M-winder but it sounded from this statement that there was a renewed emphasis on building cameras in Germany and using Portugal as a manufacturing facility to meet both Leica's needs and provide a revenue stream through outsourcing.

[Guest stnami]

Since when is stating the bleeding obvious a relevation.

"The Company has identified digital technologies as the key ......".Wow blind Freddy and Marlene his trusty cat saw this coming, scraping the bottom of the barrel news junksheesshk

[marknorton]

Hi imants! It is of course obvious but at least Leica are now on record saying it. This was after all a statement to shareholders which would have them nodding in agreement and leaving the meeting after their "kaffee und kuchen" safe in the knowledge their investment was being well looked after.

 

Key is whether they will actually launch at Photokina. I will be seriously hacked off if they don't because I am going there on 26/9 specifically to see/lay hands on this thing.

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Hallo,

Look here: Interesting Leica gear

[Guest stnami]

So you reckon that one of the directors brought in his kids digicams and said that leica should make something like this, Now that would suprise me if they didn't do that