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Mike Johnston (TOP) View on Leica Future


Jeff S

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I think he got the ball rolling a few years back and now is the time to get the sales. Unfortunately the recession may dampen the enthusiasm somewhat. Maybe but Leica people are well off anyway and the call of digital is strong. At any rate there are hugh backorders and I don`t know if they are ramping up production to meet it or will they simply make people wait. I guess they have to decide if it a peak or sustained demand.

It is expensive to get rid of people once you hire them.

 

The S2, a super nitch product or one made to sell to pros, and from what I read, even pros are watching the bottom line now.

 

In any case, I can`t justify a M9 at $7000. I have more than enough film bodies, M and R, and I got some digital Nikons.

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Interesting article and viewpoints, cheers for posting. :)

 

The thing is, if they continue to lose "x" million euros each year even though they have a good current system lineup and still continue not to be able to keep up with demand it can't bode too well for their future can it?

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I was about to post this myself as I thought it a typically well balanced view from the blogger, Mike Johnston.

The only mistake that Leica have made is in trying to introduce three new products almost simultaneously. Even the biggest of high tech companies try to avoid that. I suspect that they have learnt the lesson and once production matches demand they will hopefull, see a healthy profit in its trail.

These products should also serve as a good base for all types of derivatives.

Leica have done a great job in recovering from where they were. Without looking at the forecasts and balance sheet I cannot say if the loss last year was foreseen but it wouldn't surprise me as it is a typical dip in the launch cycle.

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I would imagine that Leica took a big and probably planned hit last year whilst ramping up R & D and production facilities for the launch of new products this year. It is a typical business curve for a company that has consistently failed to keep on top of fast moving market changes and then suddenly wakes up! I think that Leica do have a good chance now to survive. I guess we are all hoping for that.

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