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[OM] Re: (OM) Predictions, by Thom !!

Subject: [OM] Re: (OM) Predictions, by Thom !!
From: Moose <olymoose@xxxxxxxxxxxxxxx>
Date: Fri, 17 Feb 2006 23:20:33 -0800
Winsor Crosby wrote:

>......................Probably Panasonic will  
>sell an Oly DSLR with their name on it and possibly a range of  
>relatively cheap lenses with the Leica name. Either way they will  
>steal sales from Olympus rather than helping sales especially if they  
>do like they did with the Leica nameplate, significantly undercut it  
>in price. So the profit margin for both the Olympus and Panasonic  
>DSLR turns out to be pretty slim, just when they are trying to  
>accumulate capital for further development.
>  
>
Obviously some risky business here. But perhaps necessary. I'll bet Oly 
thinks their current position is just a little too weak, better than the 
little guys, but not really strong enough compared to the elephants. 
They can see the handwriting on the wall for the little players and 
don't want to end up down there.

I think what Oly is looking for here is validation in the broader 
consumer mind of the long term viability of the 4/3 system. Getting that 
big brand name out there with them is a way to try to accomplish that. I 
think their hope is to establish the 4/3 mount as the really solid third 
mount and actually increase its overall share. That way, they have a 
chance of increasing their share sightly in the short run while firming 
up the overall long term position of 4/3.

As Thom points out, nobody is going to be making much money in the low 
end for a while, at least. So Panasonic brings out a low end DSLR, their 
own or a rebranded Oly and another limited line of lenses. If their 
marketing/name strength moves some cameras, that puts more mounts out 
there. That means more mounts to sell Oly's much broader lens line to. 
And I imagine the high end lenses are much more profitable than entry 
level DSLRs and lenses.

Then as 4/3 increases its share and establishes its better long term 
viability, more low end users start to upgrade and more pros who have 
stayed out of a niche brand find it viable. I think Oly would be more 
than happy to let Panasonic have most of the low end of a growing mount 
and stick with the higher end amateur and pro end. Panasonic may even be 
able, with a bit of Oly knowledge about the SLR mechanics, etc., to 
produce a $499 DSLR that's competitive enough to get a bunch more 4/3 
mounts out there in the world. Heaven knows they know a thing or two 
about mass manufacturing and marketing.

To do this, it doesn't matter much whether they help kill off one or 
more of the hanger on brands and/or nibble a little out of C&N. I'll bet 
Panasonic would just LOVE to stifle Sony's move into DSLRs.

Moose


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