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Dr. Kaufmann, M9 and Leica's Financials


jaapv

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Very interesting comments from the man, who may be this or that in the Leica world. I found it interesting that Leica missed the boat with several major development projects, leaving them to the Japanese. Why? What was management thinking? A sleep at the switch. Fortunately for all of us Leica nuts, I think I feel a new wind blowing all the way out to New Mexico USA.

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Can someone offer a good translation of the last sentence? —

„Ich habe“, sagt er, „das Stadium des Edelknipsers erreicht.“

 

Thanks!

 

I think the right translation is something like "I've reached the stage of being a really good snapper."

 

But that doesn't capture the resonances of edel, which also means noble or generous - appropriate for the man who rescued the company!

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I think the right translation is something like "I've reached the stage of being a really good snapper."

 

But that doesn't capture the resonances of edel, which also means noble or generous - appropriate for the man who rescued the company!

Actually, "edel"—which indeed is German for noble, fine, or precious—refers to the gear used, and a "Knipser" is an incompetent photographer, a hobbyist taking trivial family snaps. So an "Edelknipser" is not a "really good snapper" but a clueless wanna-be photographer who uses the finest and most expensive gear to take most trivial snaps. Dr Kaufmann sure has a sense of self-mockery ... he considers himself an avid hobbyist photographer but not a seasoned master of the art and craft of photography even though he uses some of the finest gear available (albeit not an S2 because he won't claim one for himself while there still are customers waiting).

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I believe that he has just been made CEO of Leica Camera AG again. Or Chairman.

 

Something like that.

 

No change in status that I can see. Dr. K has generally been happy to be "the money behind the throne" - vice-chairman of the supervisory board - while letting someone else run things day-to-day as CEO (Spichtig, Lee, Spiller). Filling in for a year as "interim CEO" between Lee's departure and Spiller's arrival.

 

Leica Camera AG - Investor Relations - Board & Supervisory Board

 

But regardless of title, obviously he has been the driving force behind making Leica a digital company and a profitable one (although it will take a few more positive years before he gets his investment back).

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Upstairs in the Leica Store Mayfair London last week they were getting ready for a press event under NDA. All the current gear laid out and a presentation space left (empty) for a new product to be announced in September. Not a camera they said.

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Upstairs in the Leica Store Mayfair London last week they were getting ready for a press event under NDA. All the current gear laid out and a presentation space left (empty) for a new product to be announced in September. Not a camera they said.

 

But maybe they would say that to try and keep things hush hush? And maybe Mayfair have only been asked to "... make a space 3 metres square ...?"

 

dunk

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But maybe they would say that to try and keep things hush hush? And maybe Mayfair have only been asked to "... make a space 3 metres square ...?"

 

Maybe that leaves enough room for that rumoured S1.2 :D

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You may attack the market segment with larger margins, and get huge profits even when the market share in volume is low. This is Apple's lesson. Look at this:

 

You Can't Appreciate How Completely Apple Has Humiliated The Cellphone Industry Until You See These Charts

 

Leica is following the same general idea. I am not saying Leica is the Apple of the photographic industry, but the idea of niche segments highly profitable is very good, and the only strategy that works for a company like Leica: very small, but with a very powerful brand.

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  • 2 weeks later...

My opinion about a new Leica EVIL in Photokina is that it's not going to happen.

 

Leica is not going to directly compete with m4/3, just like they are trying not to directly compete with Canon and Nikon by producing cameras which are different enough as to be considered a different category (whether they are or not) like the M9 and the S2. And it is working pretty well for them, Apple-style if you want.

 

My two cents for Photokina:

- No new M (it would make no sense at all, since they still can't produce as many M9 as they can sell).

- No new S (same)

- Some new M lenses (28mm Summilux? Some more Summarits?)

- D-Lux 5 (that's the LX5)

- A new X is possible, but it would be an improvement over the X1 rather than a new model: I think Leica wants a very streamlined product range. Plus I doubt they have the capacity to produce two different X cameras.

 

And that's it. The question mark is on the R system. The eventual expansion of the company goes through a DSLR system just like they had the R system in film times. My opinion is that it is too early for Leica to release and support a new digital R line, even if the lenses are already there. As said, it should have something different (which I can't think of) to the current Canon and Nikon lines.

 

But the Apple example might make you think that Leica might not really be interested in a DSLR at all. I don't think that just because the M9 is so expensive, Leica must be making a lot of money. I don't know their margins. But they might be following the high quality-high brand value-expensive items easily. It works pretty well, and they probably can't compete in the Canon-Nikon model of high production-low margins.

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