Rumor of Pentax's Demise

[14mm 2.8l]

Here's a slice of my Pentax' Past Dealer binders which date back to Honeywell thru 2004:

 

<P><IMG src="http://adkinstone.com/PentaxCatalogues.jpg">

[jtk]

There was a big, beautiful full page ad in a recent New York Times magazine (special travel issue I think)....for the Samsung K20D.

 

It's good that Pentax isn't at the helm anymore...they were getting nutty for a while there, imagining a market for them for MF digital etc. Get a Calumet catalog to see the real MF players: Sinar, Hasselblad, Mamiya...

 

Pentax (Hoya, Samsung, whoever) needs all their chips on the table in the amateur and prosumer market...K30D and K40D will make life tough for Canonikon.

 

Hard to imagine dealing with a camera store for new equipment. The manufacturers must surely find them a pain in the patoot. Would you hire a camera store clerk if you needed a salesperson ?

[jtk]

...my comment about sales clerks was unkind...they're nice people, but the job's inherently unnecessary...it's unrealistic to pay people well to sell commodity items like DSLRs, competing against Adorama, B&H, Amazon (the latter has incredibly good warrenty service), and smart sales clerks figure that out pretty quickly: If they're not retirees, they do need to make living wages. Same story as with minilabs vs the long-ago-common pro-labs.

[john carter]

But I bet Canon-Nikon like those sales clerks.

[jim_b9]

John Kelly said:

>...my comment about sales clerks was unkind...they're nice people, but the job's

inherently unnecessary<

 

I would say that for any complex product such as a DSLR, a car, a television, or

computer there will always be a segment of the population that prefers to have the

product explained to them by a salesman...

 

...which is why we have car dealers, Apple computer stores, Best Buy, and camera

stores. Not everyone is capable or comfortable with doing their own research and

making a decision without help.

 

I haven't sold a camera since 1986... but now at work colleagues still come to me for

camera advice: "Tell me what to buy!!" I hear it all the time. :)

[miserere_mei]

Thanks to everyone for opening my eyes. Please look out for all my Pentax kit on the market place soon. I will offer spiffs to anyone who buys 2 or more items.

 

Does p-net have a Canikon forum...?

[monochromekx]

@Lindy: Looking carefully through the binder I believe it covers the years 1978 through 1981, all mixed together, with some expected sections missing. The cover is dark blue and has PENTAX POWER printed on the spine.<p>Unfortunately the monocular is not listed with the accessories.<p>I once let one get away on ebay - oh well.

 

This binder has been on my For Sale table for over a year as I reallocate my Pentax investment to Limited lenses and things i use.

 

Request my email from my workspace - -

[lewis_hizer]

Wow, thanks for all of the replies. I still intend to buy a K20D, hopefully it will still say "PENTAX" on it by the time I get it, and not Samsung. (Just kidding.) I already have enough problems at weddings when asked why I don't use a Canon. Usually the average person has at least heard of Pentax. Their eyes just glaze over when I try to explain what medium format is, or that a Fuji S3 or S5 has better "dynamic range" than anyone else . . . I've taken to saying "This is the equivalent of a 42 megapixel camera" in regards to the Pentax 67, which usually shuts them up (invariably men).

As far as store clerks go, I once had a client (the groom) ask me what kind of DSLR to buy. I asked him what he would use it for, how much did he want to spend, what kind of output, etc. . . . Now, keeping in mind that I also own three Nikon bodies and ten Nikkor lenses, an Olympus (and even once had a Canon T-90 for about two weeks) and have no particular brand prejudices, I recommended the K100D, or, if he was feeling megapixel-inadequacy syndrome and wanted the dust removal and weather-sealing along with the in-body image stabilization, the K10D. It seemed to have the best features for the price at that time, (I believe it was late 2006?) Anyway, of course he proudly came back from the biggest camera store in town with some kind of Canon for significantly higher $$$ and no IS, weather-sealing or dust removal, and still only 10 mp, because the clerk had pointed out to him that Pentax was "New to the game", and an "unproven company, with no prior history on which to judge its ultimate reliability".

BTW, I did a Google search on "Samsung K20D" and only came up with things like "the Samsung K20D twin, the GX-20", which appears to be a poorly-phrased way of saying "Samsung's twin of the Pentax K20D, the Samsung GX-20".

[._._z]

http://www.hoya.co.jp/data/current/briefingsubobj-282-pdffile.pdf

 

Pentax Imaging Systems:

 

Q4 year-over-year growth: MINUS 15.5 percent

 

Q4 quarter over quarter growth: MINUS 24 percent

 

Annual growth rate: 1.7 percent

 

Compare to the other 2 divisions under the 'Pentax" brand....

 

Not good.

[monochromekx]

Does a company that is preparing a division for sale or dissolution hire the Honda ad agency for global marketing and advertising?<p><a HREF="http://nedbunnell.blogspot.com/2008/04/pentax-selects-rpa-as-new-ad-agency.html#links"> Pentax selects RPA as new ad agency </a>

[14mm 2.8l]

Ah, Bummer Paul. I was hoping the elusive Monocular K was listed in your dealer binder. I assume its not included in the wholesale price sheets either? Monocular K is the only Pentax item issued I have no record of. I pick'd one new in the box off ebay a couple months ago. Right after another fellow unearthed 6 new in the boxes. Paid 1/2 what Mr 6 Pack needed. Still like to know when these were current. Pentax made some neato items over the years, monocular k was one of them. Of Course its useless on current DA lenses as one really needs a aperture ring to shut down the telephoto lens to improve image quality. DA have no aperture rings so thats not an option.

 

I look foward to the Pentax ads. I thought they picked the same company that markets soyjoy using a hediously bowlegged lady cartoon. I felt no reason to buy a soyjoy thingy after seeing that ad. Maybe they changed the ad company that was announced on Pentax USA website last month or two? Kinda remined me of the ugly rats that quiznos subs used to sell food. They yanked the critter ads once their sales tanked. I still can;'t buy a quiznos sub due to their rats selling food ads.

 

Ashton Krutcher (Mr Demi Moore) for Nikon D40 ads are funny, where he's at the wedding. Canon loves their Teniis Stars. I wonder what iconic choice will be offered up to sell the Pentax logo? Sales are dramatically down accoding to the Hoya Q reports. Good thing they bought pentax for its Medical divsiion huh? Those sales are way up.

 

Lindy

[._._z]

"Does a company that is preparing a division for sale or dissolution hire the Honda ad agency "

 

Does a company hire a less expensive ad agency to reduce costs? In other words, what makes you think this has any effect whatsoever?

[iain_dickinson]

Pentax is not dead, in fact here in the UK they are finally sorting out the marketing and have (indeed are) putting full page ad's in Magazines. Although not

doing TV ads, they are targeting specific markets and the Magazines are the way to go. In fact, a Canon friend of mine has said that Pentax are everywhere in publications, so the effect seems to be working.

 

Pentax dead? I don't think so........

[monochromekx]

Well, I wouldn't want to contradict someone who has been on these boards since 1999, has over 10,000 posts and seems to have a rich background in photography, especially since I'm so new to the internet and digital side of photography.<p>Hoya/Pentax REPORTED sales from the imaging division are down 24% 4q 2007 vs. same period prior year.<p>IN the US when a company is taken over, especially when the integration process takes a year, reported sales and revenues look terrible for the old company - then they look terrific after the final merger, by comparison.<p>Sales and distribution relationships are changed; contracts are renegotiated; products are discontinued; financial statements are examined and losses intentionally allocated to the transition year; products are assigned to different reporting lines or divisions; all kinds of things happen internally that aren't revealed in the public revenue and earnings reports.<p>But what do I know.<p>I've only been here three months and I'm already tired of the negative threads and hysterical "sky is falling" mentality of many drive-by posters, and even long-time, knowledgeable people who should know better.<p>Show me something deeper than supposition and maybe I'll listen; until I see real announcements from Hoya to the contrary I will continue to believe Pentax is a valuable asset in need of capital, marketing and management expertise that Hoya plans to provide.

[._._z]

I wouldn't want to contradict someone who frequents Pentax discussion groups and "happen to have a 1979 Pentax Dealer Catalog" handy when he posts, but just because a poorly performing subsidiary becomes subsumed into a more viable parent company doesn't necessarily affect the future of the most porly performing parts of the subsidiary. Why? Because Hoya is particularly ambivalent about the camera division, having purchased Pentax primarily for other properties.

 

Hoya's management made it clear that they did not want to invest in the hyper-competitive cosumer camera market, which is part of the reason there was a mini-coup in the Pentax boardroom upon the announcement of the proposed merger, which resulted in the company's president stepping down. In December 2006, nikkeibp.co.jp quoted Hoya's CEO Hiroshi Suzuki answering the question 'Why Pentax' with a reply that focused squarely on the medical equipment business, which Pentax's Fumio Urano admitted was Pentax's "key profit earner":

 

"...we found Pentax, who boasts superior technologies related to medical equipment, very attractive. Current combined sales from medical-related business at Hoya and Pentax are roughly 40 billion to 50 billion per year. We aim to double the sales as soon as possible."

 

And Hoya's interest in Pentax's camera business?

 

"We have no intention to pursue a larger share in the general digital camera market. To make the business precious despite its small size, we consider firmly advancing integration and limitation of the business.... I think Hoya will be able to do for the camera business no more than injecting its knowledge for management. "

[matthew miller]

Sounds like this is just last year's rumors circulating around and regurgitated by someone who wasn't really paying attention.

 

As for the Q4 profits: fourth quarter 2006, the K10D was launched. Fourth quarter 2007: no new launch but rumors of *two* exciting new cameras right around the corner (save your money!), coupled with completely running out of existing stock. So it's not like the numbers are a surprise to anyone.

[._._z]

These are not rumors, Matthew:

 

Pentax Q4 year-over-year growth: MINUS 15.5 percent

 

Pentax Q4 quarter over quarter growth: MINUS 24 percent

[monochromekx]

Outta here. SOBS everywhere.

[mel_unruh]

Even with poor Q4 they still posted positive growth for the year. This means q1-q3 were respectable enough to offset this and remain on the plus side. The picture here is also somewhat blurred as a portion of the results are before the consolidation and a portion are after. There could be differences in bookeeping methods of the two companies, charge offs, etc. I'm not worried about it at all. Look at the investment being made in Pentax for R&D to get 14MP etc, etc. You don't do this for the heck of it, there is a profit to be made. So, relax. Go shoot some pictures.

[._._z]

"Even with poor Q4 they still posted positive growth for the year."

 

The camera division effectively broke even, after crashing and burning in the most important selling quarter of the year. Not good.

[sfcole]

I always laugh when I read this stuff: "Pentax is here to stay." "Pentax is goin' down!"

It's impossible to predict the fortunes of ANY company in today's economic climate.

You're all kidding yourselves. If any of you really knew, you'd be out making a killing in

the market.

[mel_unruh]

"The camera division effectively broke even, after crashing and burning in the most important selling quarter of the year. Not good."

 

Please read the financial statement more carefully. "Income statements of PENTAX were consolidated from the 3rd quarter ended Dec 31, 2007."

 

You are thinking Q4 is OCT-DEC. This is their Q3. They are on a different fiscal calendar. Q4 is JAN-MAR.

 

So, this should make a little more sense as the QTR after the big Christmas rush is not going to be all that hot. Plus people are holding off wating for prices to drop after new products are released, etc. You combine this with the possiblity of differing accounting methods pre and post merger, charge offs, etc, etc. It just goes to show that you can't prognosticate based upon one quarter.

 

Mel

[p_l_jensen]

"We have no intention to pursue a larger share in the general digital camera market"

 

Again this quoted out of context. General camera market means P&S. DSLR's is not the general camera market but a niche market. This was evident from the original articles. The shift away from P&S was not initiated by Hoya but decided upon years before the Hoya deal.

The minus numbers quoted here is due to writing off old inventories and reduction of value of theP&S cameras. The DSLR's and lenses are doing fine and is what Hoya will concentrate on.

 

It can be found here:

 

http://www.hoya.co.jp/data/current/briefingsubobj-280-pdffile.pdf

 

Highlights:

 

 

Regarding SLR cameras, the sales of the interchangeable lens has grown significantly,and the camera (body) business itself has been successful. However, the unit shipment of compact cameras remains at the same level and the unit price is approximately down to 60% (the price is discounted by 40 ﾖ 50%) of the previous year.

 

We have liquidated the inventory of last yearﾒs models, because we have been forced to sell them below cost.

 

We will not be able to stop compact camera business, but we have been trying hard to shift resources to SLR camera business. While we were shifting the weight to the SLR camera, we could not maintain the other business properly. I regret that we did notaddress this earlier.

 

Although we have some profitable business lines such as the interchangeable lens for SLR and the endoscopes, we suffered a deficit in the 4Q due to losses from compact cameras. In order not to repeat the mistake, we will stop in-house production of compact cameras and start ODM. We will try not to increase unit sales nor expand size unnecessarily. Instead, we will allocate these resources to the SLR and the interchangeable lens.

[monochromekx]

@.[. Z: <b>HAH!!</b>

[morgan lee]

Thank you for pointing out that document. It really was interesting to read the whole thing and see where the rumors spring from. That's awesome that not only is Pentax SLR division thriving but it looks like they're pooling their resources into makiing it even better. Can't wait to see the results.