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Leica is going Chapter 11


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i must say, i am very surprised to hear smart people suggest

that it made good business sense for leica to attempt to become

profitable by making digital cameras.

 

did anyone notice that the estimated investment in the R modul

was about the same as the net operating loss for leica for the

last three years?? consider that the R modul was outdated

withing 3 months of its announcement (and now looks like

positively ancient technology), and you begin to see why only

large electronics companies can play on the digital stage. let's

now even discuss the dlux or digilux 1&2. how many profitable

years did they eat up (and they were panasonic products).

 

leica will sink or swim as a film camera maker. could it survive

on the same business model as alpa -- i say yes, why not??

new technologies, always produce nostalgia/luddite/retro

markets. based on the much higher than expected MP sales,

this theory seems to be holding true for leica. the company will

have to scale down and raise its prices. but it has a market. it

simply must become the anti-digital alternative.

 

digital may kill leica -- the foolish expenditure of profits on a vast

digital folly.

 

most boat makers switched to fiberglass out of business

necessity. a few high end wooden boatmakers are thriving by

catering to a niche.

 

and don't tell me leica has failed catering to a niche. they have

done no such thing. ever since digital came along they have

tried to pretend they were in the game. and that is where they

have gone wrong.

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"did anyone notice that the estimated investment in the R modul was about the same as the net operating loss for leica for the last three years?? consider that the R modul was outdated withing 3 months of its announcement (and now looks like positively ancient technology), and you begin to see why only large electronics companies can play on the digital stage."

 

Roger, it has nothing to do with large electronic manufactures. In what right mind would a company spend all that money on R&D for a digital back aimed at that street price for a few R bodies out there? Like really. Any shooter wanting to go digital with a dslr isn't likely spend that cash on a steam engine. Leica trying to make a back for a body that hardly anybody uses in the first place while in the infancy of digital? Stupid idea.

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Leica should have studied Norton and Triumph in the mid 70's. Leaky motors and electrics that don't work and tunning the thing up everytime you want to ride while being more expensive in your home country than an imported hassel free Honda CB 750 four.
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leica has always been a niche market....it only takes time where niche markets die in a world of large companies that can produce new and exciting products that consumers love to consume....if you dont keep up with that you lose...its just business....right?
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Gabriel Hanson presented the analogy of Porsche and their 911 series, conveniently ignoring several missteps that company has made over the decades (924, 928 anyone?).

 

But there are parallels ... is there sufficient market for Leica's optical design skills, the way Porsche markets its engineering services? They don't have much of a history with the wide-range zooms that occupy most of the consumer market. Are there enough customers out there for a highly-refined dead-end design?

 

If Leica really were Porsche, there would be a quieter, higher-speed shutter in that body, and a rangefinder more resistant to shock. There would be an R6.2a to compete with Nikon's FM3A for the hardcore film/mechanical camera boutique market.

 

I enjoyed working with my Leicas back in the '70s and '80s, but they've been chasing too many design zebras to stay current with their core products.

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Vincent Black Shadow. Nuff said.

 

Well, maybe one more comment: German banks would all be in the dumper except for foreign bottom-fishing investors. In the old days Drexel Burnham Lambert would have arranged a leveraged buy out.

 

Maybe this explains Bush's visit.

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"it only takes time where niche markets die in a world of large companies that can produce new and exciting products that consumers love to consume....if you dont keep up with that you lose...its just business....right?"

 

Some people fear this is where we're headed, and we may well be living in such a monolithic, monopolistic world before long. But the whole point of this discussion is whether or not this scenario is inevitable. Optimists would point to things like microbrews, the renewed popularity of tailored suits, flourishing small guitar manufacturers, etc. and say Leica and similar companies have a lot of potential if they're managed correctly.

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without the boulders, you can't have the nooks in between. beau,

i think large companies often are responsible for creating niche

companies. the esoteric must define itself by reference to the

mainstream.

 

and so i disagree that leica cannot exist in a world of canons and

nikons. in fact, just the opposite.

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What's the big deal? It's just a box with film in it....if nothing else works then youre done, go bowling or white river rafting. Take some culinary arts classes....move on. If you want to take pics you still got your box or get another. WTF??
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hi -- i just don't buy the idea that you can compete successfully

as a digital imaging company with a new platform every 7 years

or so. the pace of change is too great. i also don't believe that

leica has the expertise to pull off successful digital cameras in

any event. they couldn't even buold the CM properly.

 

more important (maybe just as important), leica trying to sell

digital is like nikon going into the hand-bent snow-shoe

business. it really fights the whole image of the company. leica

should continue to do what it is good at or die trying.

 

finally, i think it will be just plain easier for leica to succeed in the

alpa model as opposed to its current hybrid model. selling high

end non plus ultra film cameras to a niche market of rich

luddites is, in reality, the low hanging fruit.

 

HOW ABOUT THIS: i bet if someone gave leica back all the

money it has wasted on its numerous failed digital ventures

(c.2,600,000 euros i am told), and if someone readjsuted their

profit sheet to show how they would have gared had the dollar

not dropped 40% against the euro, the company would be well

into the black. MP sales are double the forecast and m7 sales

are 80-90% of forecast. toss in ONE successful OEM deal with

sony or konica/minolta and you've got a very robust little

company.

 

and every box they sell should be stamped "100% analog."

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<i><blockquote> Film will become a boutique item, yes. Art is already a boutique

item though </blockquote> </i><p>

 

So for Ray film is equivalent to art. That makes a lot of sense on some planet, I'm sure.

<p>

 

<i><blockquote> If Leica goes under, it is not entirely their fault. It seems to be a law

of nature that cheap inferior products produced in quantity, whether by genetics or

manufacturing, will overcome and replace expensive, less numerous high quality items.

</blockquote> </i><p>

 

Assuming momentarily that's true you <u<must</u> find fault with management

which is so blind as to not grasp this simple "law of nature" and respond accordingly on

behalf of shareholders.

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But Nikon's <a href=http://edinburghnews.scotsman.com/business.cfm?id=145502005>profitable now</a>, Pete. Even if one contends that Canon calls the tune and Nikon dances to it, at least Nikon's dancin'.<p><p>

 

Beau says "ome of the most important musicians of our generation play phonographs," and I suppose he's right. Must say, though, that some of the listeners from *my* generation haven't really warmed up to that music and still look at the turntable as a device upon which to play older jazz records. -:) <p><p>

 

Into this forum filled with failed analogies, let me roll another one: Could a smaller Leica wind up more closely akin to a semi-custom bicycle frame manufacturer, rangefinders only, and ultimately, add a rangefinder that captures digitally?

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<i><blockquote> leitz today, and the swiss watchmaking industry in the early

80s...which seems to have survived intact, it would seem. </blockquote> </i><p>

 

It hasn't been 'Leitz' for a while.

 

Aside from that, I'd agree that Leicas have a lot in common with expensive jewelry

timepieces which work as well as competitors costing a fraction of their price, while

selling as luxury goods with snob appeal.

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"People will buy a digi M and a digi R - all Leica have to do is deliver the product. The market will make sure that the brand doesn't die - and that these products will be delivered."

 

ah, Pete, there isn't enough of a target market to make even the R&D pay off. My bet is eventually a Japan made digital body will come out for all the dusty Leica lenses.

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<i><blockquote> Leica is paying the price of quality and durability. Sad.

</blockquote> </i><p>

 

Leica is paying the price of staying decades behind everyone else in everything but

some lenses. Old Nikon F bodies are durable and of high quality. Same for Canon F

bodies. Same for most medium format bodies from decades ago. But the successful

manufacturers advanced their products and kept constant with the needs and demands

of most consumers. Leica was too conservative, deriving sales from fewer and fewer

customers with marginally-differentiated rangefinder camera bodies (and problematic

SLR bodies) that were comparatively technologically backward for too long, focused on

a small niche of fondlers and amateurs who could afford to spend relatively huge sums.

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