Dr. Kaufmann, M9 and Leica's Financials

[stunsworth]

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It's another forum run by Andreas (who runs this one)...

 

http://www.l-camera-forum.com/leica-blog/2010/07/new-mirrorless-forum/

[pop]

??

 

such as in: http://www.l-camera-forum.com/leica-forum/news/132783-new-forum-project-mirrorless-forum.html

[rosuna]

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.

 

There are no FF EVIL cameras out there, and it is very likely that those cameras never will be in fashion. Sony, Panasonic, Samsung or Olympus are making APS-C EVIL cameras. Nikon and Canon both have professional solutions for FF based on reflex systems. It is their consumer segment based on reflex cameras that is menaced. Maybe the response will be a FF EVIL camera, I don't know, but price and size are key variables for this type of cameras. Video support and connection to video systems is another important factor (at least for Sony, Canon and Panasonic).

 

Leica is the only company offering a mirror-less FF camera (the M9), but it is a niche product due to several reasons (price, manual focus, etc). A FF EVIL camera would be an exotic product in the market at this moment, and it would be that for many time I believe. Support to R lenses is a reasonable condition, but it should be a derivation of the M system with direct support to M lenses as well. This second condition is more important than the first one, in my opinion, specially in the long term.

 

Leica knows better. They have to know what Canon or Nikon are doing, and the state of the technology and possibilities of a partner for one such project, etc. But in abstract terms, the idea sounds good, the only problem being how this new camera would interact with the M and extinct R systems.

[Ecaton]

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).

 

He is actually President of the Supervisory Board, a non executive role, which is a different body than the board of directors. The latter is run by Rudolf Spiller, in the capacity of President & CEO.

[pico]

 

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.

 

IMHO it would be insane for Leica to enter the FF DSLR market. That market is already settled by sustaining developer companies who have narrowed that market to responding to each other. Leica simply is not a high-volume manufacturer. Ramping up for something of such risk would likely take them right out of business.

 

What Leica has now in the M9 is a product that can enter the sustaining track - that is, periodic camera improvements that fit into their current manufacturing capacity. It is the same model that kept the film M cameras alive to this very day. Leica is set to benefit from a discovery mode in which they can respond to their own niche product rather than to bring out something entirely new to them, but common to the rest of the market (like a spendy 4/3).

 

I don't see any correspondence with Apple at all. Cell phones and mobile entertainment platforms (which the iPad is) has a monster consumer base compared to high-end cameras of Leica's type. Apple also has a super-star reputation, and over twenty-five years of clamoring lower-end wannabe prestigious consumers. Leica has a tiny, tiny market base, even among camera makers, let alone the general public.

 

I've a rule, "Whatever the experts predict is wrong." Go by that assumption when planning new products and you won't go wrong. Apple is an outlier.

[biglouis]

Interesting to know that he anticipates double the initially expected M9 sales. That's a very good reason for any delays.

 

Jeff

 

...or bloody awful planning...

 

I do wish Leica would make a commitment to the m4/3rds market. They already have a fantastic lens in the PanaLeica 45/2.8 and they are leaving money on the table by not creating a 17.5/2 and a 25/1.4 and a 14/2.8 They don't even have to produce them, all they have to do is license Panasonic and watch the cash come rolling in...

[rosuna]

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The m4/3 is aimed at the low end of the market, regarding price. That is mass electronic market. I am not sure Olympus like it, but Panasonic does for sure.

 

Leica's designs are expensive. I guess Panasonic is not interested in a set of premium lenses with prices 2 or 3 times that of the body itself. Maybe I am wrong, and someday we will see some kind of "professional" or "premium" product in that system, but I doubt it. Olympus might try.