Canon is repeating Apple's tragic mistake!

Started Nov 2, 2002 | Discussions thread
ForumParentFirstPreviousNextNext unread
Flat view
R_C
R_C
Forum MemberPosts: 58
Like?
Canon is repeating Apple's tragic mistake!
Nov 2, 2002

With the release of the 1ds Canon has clearly set the new standard. But, like Apple did before them, I feel they are about to make a tragic mistake. In effect, they are confusing a short term technological edge with a sustainable strategic advantage. Instead of utilizing this window of time where they have a clear advantage to build their base of users and move thousands of Nikon diehards over to canon, they are simply trying to squeeze every last dollar they can out of every 1ds sale.

This makes even less sense when you consider that Canon, like apple and unlike Nikon, is a closed platform. If you buy a Canon lens your only choice is a Canon body. It's becoming clear to me that history is repeating itself.

This time Canon is play the role of apple: Short term lead, mistaken as sustainable advantage, closed platform and a short term focus on maximizing margins rather than building dominant market share.

Nikon is Microsoft: Behind but hungry, building an open platform that hurts them short term but ultimately makes their lenses a safer choice. Most importantly of all they understand that nothing is more important at this stage of the game than market share. Untold thousands of individuals are getting into high-end digital photography that never even considered buying a film camer that cost over a few hundred bucks (I'm one of them). This new market is exploding, and whoever becomes dominant now will hold the lead for some time to come. As an example, it was Nikon that drove down the prices of the D100/D60/S2 not Canon.

There is still time for them to correct this mistake, but based on the decisions I've seen to date, and the arrogance they imply, I'm not too hopeful.

Mike

P.S. Just for the record. I fully believe in the free market system. They have a right to charge whatever they want to. I just think this pricing decision is a business mistake that will end up costing them a great deal of money.

ForumParentFirstPreviousNextNext unread
Flat view
Post (hide subjects)Posted by
ForumParentFirstPreviousNextNext unread
Keyboard shortcuts:
FForum PPrevious NNext WNext unread UUpvote SSubscribe RReply QQuote BBookmark post MMy threads
Color scheme? Blue / Yellow