Why Leica Is Going Bankrupt

[masatoshi_yamamoto]

This Babelfish tranlation of a Der Spiegel article says it all:

 

"Leica overslept and suffers the trend to the digital photography from losses. Besides the

weak dollar impairs the business abroad, because the cameras become more expensive

larva in Germany thereby."

 

Did I miss the special limited edition larva skin commemorative model?

[klaus_klein]

Those larvae were hatched by taking the "made" from "made in

Germany" for German vocabulary (translating "maggot"). I'm afraid

this wasn't Leica innovation but Babelfish's. :-)

[hugon]

maggots? read an article a lil while ago how hospitals use maggots on patients who sustained massive injuries where skin-tissue would not grow back, anyway, had images and all but i guess they weren't made w/ leica's. yeah i know, slightly OT, but interesting article.

[joseph_barbano]

Leica's going bankrupt because people aren't buying NEW cameras and lenses. If you want Leica to stay in business, start buying NEW stuff.

[EricM]

"...start buying NEW stuff."

 

if it was better than their older, used, stuff, then yeah. but it isn't, so their sunk.

[morthcam]

I suppose buying replacement larva skin from CameraLarva.com doesn't help Leica either....

[huw_finney]

I had a machine translation of 'grub screw' turn it into 'maggot sex'. There was a lava covered model but the dust got into the eyepiece. Fantastic grip though.

[brunom]

Don't you think it should be 'Leica may possibly become bankrupt' or has there been some announcement stating they are to be bankrupted?

 

Regards

 

Bruno

[frank granovski]

I doubt that Leica will be going bankrupt. There's always a good market for high-end rangefinders. If Leica goes back to its roots and builds the best rangefinger (an updated M3), then all will be well. Is this wishful thinking?

[bashir_lunat]

"If Leica goes back to its roots and builds the best rangefinger (an updated M3), then all will be well. Is this wishful thinking?" I suppose Leica should target everybody as potential customers.Just look at other industries where they will cater for the most by offering products of different value,thats where the business is.eg Nikon offers F6,D2X(nearly),but also F60 and cheap P&S which are main earners not the F6 and D2X.How many units of F6 and D2X will be sold as opposed to D70 and F60 etc? How many Canon 1Ds2 against D300 and G6 etc? Leica needs to call board meeting URGENTLY to draw some future plans.With a view to cater for low end markets.No good having those old fashioned and not forward looking people on the company's management board.They are unable to think modern.

[jorge]

<a href="http://www.leica-camera.com/unternehmen/presse/data/04272/index_e.html">The statement from Leica</a>.

[dan_fromm1]

Frank, not to be unpleasant or insulting, but I fear you're dreaming. The market for new film cameras is shrinking, the $US is falling against the Euro, and Leica is not a particularly efficient producer.

 

On that last point, I'd swear that within the last couple of years someone posted here to the effect that the fact that 90% of new Leica lenses were scrapped because they failed final QC proved Leica's dedication to the highest standards. To me it proved that Leica was unwilling or unable to fix processes that were badly out of control.

 

Cheers,

 

Dan

[frank granovski]

Dan, I'm both a dreamer and a rangefinder fan. That's because my mother was from pre-war artsy Berlin and owned a Leica and I'm now counting the years to 60. Okay, maybe that's not it. I just love taking pics with rangefinders. ;*)

 

Hopefully, Leica will pull through.

[eddie y.]

In order for Leica to get out of the red, they need to focus on more mainstream products. For example, rebadging more of Panasonic's digital cameras (e.g. their FX line is very good). This reminds me of how many car companies started building SUV's because they not only sold well, but also had a high profit margin. Basically every car manufacturer now has an SUV (even Porsche!) Now, like Porsche enthusiasts, the company might be accused of 'selling out', but the reality is that Porsche sales have increased tremendously since releasing their SUV and has basically saved them from financial troubles. Their SUV was also co-engineered with Volkswagen.

 

Now this doesn't mean Leica should price their cameras into the stratosphere (Digilux, DLux anyone???) But just make minor changes (body design, different image algorithims) and price it *slightly* higher than the Panasonic version. This will give them sales volume, with little R&D costs since it's basically a rebadged Panasonic.

[brunom]

Bashir

 

Leica doesn't need to operate as Nikon and Canon do - it is not in the same [mass production] business. I'm sure it would be highly delighted if it were to sell 20,000 to 30,000 cameras in a year, whereas Canon are proposing to make 100,000 a month of the new D350!

 

Regards

 

Bruno

[bashir_lunat]

Dear Bruno, please dont get me wrong,I think we are all concerned about Leica as a brand, but the reality is that you and I as potential customers arent quieing up for it.The company must make profit and invest in R&D for future products in line with time--and time is extremely important.

Regards.

[tekkie]

I have to believe that the main holder of Leica shares (Hermes) would have some plans

after making such a heavy investment. These people are in the high price, high quality

business and know how to keep a quality product afloat, even if it does have to change

with the times. Just my opinion.

[paulstenquist]

Leica won't make a comeback by rebadging Panasonic P&S digitals. They

need a market leader DSLR or digital rangefinder that sells for $3000 or so

and offers new technology and excellent performance. They should have

started down this path five years ago. If they don't have something in the

pipeline right now, it's too late. The shrinking film market is easily

accommodated with used Leicas. There is no salvation in cellulose.

Paul Stenquist

[photojerry]

Leica is going bankrupt because they missed the boat. The rangefinder M6 and its predicessors ARE GREAT cameras. They were the inital choice or alternative choice toa SLR. There greatness has always been the glass. The M series was a means for the use of teh glass. The advent of the Autofocus changed the market for all photography. The volume buyers the photojournalist moved rom the M and R series to the autofocus Nikon and CAnon. They never returned to LEica. They went for the ease of the autofocus and the heck with the super quality glass. Leica never followed the market. They tried with the development of the R cameras but never hit the mark with the auto focus.

IF Leica wants to succeed they should get in bed with Canon or Nikon and make a premium glass for there cameras.I think it would sell like hot cakes. If people are willing to purchase the L canon lenses they would purhcase a Canon mounted LEica Lens even at 2 or 3 times the cost. everybody knows the lens glass is superior to the Japanese glass. Contrast and boke. Also the feel of the Leica lens is superior to the CAnon lenses. People will pay for the difference. Even if it is only 5 or 10% of the Canon market it would save Leica. LEica could contue the development of the M series and jettison the SLR. I have never read a resounding indorsment of the SLR Leica.

 

The new R9 Digital is a JOKE. What market are they trying to hit. Non Autofocus Film and Digital. That must be a huge market!!

 

Jerald Rosenfeld

[steve_levine]

Those that put price above all else,are driving today's retail economy.A company that builds a high end, precision built machine cannot compete with the crap builders.And the public doesnt care.

 

Add the slow down in film camera sales, created by digital.And something has to give.

[james_.1]

Raising prices all the time, Zeiss, Epson, etc. Mint used items floating around at a fraction

of new price.

[eddie y.]

Well how do you expect Leica to develop this wonderful new DSLR? They can't even put together a digital back, let alone a complete ground-up DSLR. Where do you expect them to get money for that development? I'm not saying that digital P&S cameras are what saves Leica, but they need a cash cow, and high volume digital P&S cameras is probably their best bet right now. What else is there? How many people actually buy their NEW Leica MP's, M7's, Digilux2, R9, CM's ??? It's a drop in the bucket really. As mentioned before, Leica doesn't really have efficient manufacturing.

 

Also Hermes ownership won't save Leica with their marketing of high-end products. Selling a $3000 bag and $500 scarf (which costs them about $50 to make) isn't the same as technology products. You have to sell enough volume to recoup your R&D, manufacturing costs + have more for future projects. It's pretty obvious Leica has little to no R&D budget, especially for giant projects like a DSLR and Dig-M.

[Spearhead]

Hermes lost most of their investment in Leica already, why would they put in more?

[chris_chow]

The product lineup and the sales are only part of the story. Without going through the books, there is no way to tell why Leica is sinking.

 

In today's business world, a good accountant is just as important as a good product designer.

[herve_laurent]

THANK YOU, CHRIS. I read the postings with both amusement and distate. everybody

seems to have a solid theory about why leica is in trouble and the solution for a recovery.

Although some conditions explain " the landscape " shrinking film market for a pricey

product, exchange rate $vs euros , higher competition in the rangefinder market, nobody

in this forum ( and I mean NOBODY) has the insight look on the books to be even able to

tell where leica is experiencing most of their lossed. so please , try to keep that in mind