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Not Leica's decision.

As we know (or should know), the compact small-sensor non-interchangeable-lens Leica C, D and V-luxes are Panasonic cameras with a red dot added (plus a few other cosmetic or firmware adjustments). Even the lenses are Panasonic designs, which Leica approved as "acceptable" to bear the Leica trade-name - as a part of the whole "shared technology" business arrangement with Panasonic.

Leica has never stooped to wasting its own factory-space and personnel on making such cameras themselves.

The Leica C-Lux is a rebadged version of the Panasonic Lumix DC-ZS200/TZ200

The Leica D-Lux 7 is (based on) Panasonic's Lumix DC-LX100 II.

The Leica V-Lux 5 is ..... based on the Panasonic Lumix FZ1000 II.

They existed (and were relatively inexpensive) only so long as they could be piggybacked on Panasonic's mass-consumer production.

Panasonic announced ~18 months ago that it was getting out of that compact, fixed-zoom market. Along with most of the Asian camera manufacturers.

Smartphones have made that part of the market economically unsustainable for "cameras-only."

https://www.43rumors.com/nikkei-reports-panasonic-has-stopped-the-development-of-low-end-models-and-will-focus-at-enthusiasts-and-professional-filmmakers/

Panasonic has done so. The assembly lines are now more profitably used for the larger interchangeable-lens G, GH and S cameras.

Therefore the "Leica-ized" versions are also gone forever. Although a scattering of the "final" production may remain in the supply line until sold.

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