Olympus trys to Calm our fears once more

Started Feb 14, 2013 | Discussions thread
Senior MemberPosts: 1,616
Re: Hold on a minute
In reply to Marty4650, Feb 14, 2013

Marty4650 wrote:

Read this news story carefully:


It says two things:

  • Olympus denies it is ceasing production of DSLRs
  • Olympus lost $170 million last year on cameras and lenses
The first statement doesn't mean there will be any new 4/3 cameras or lenses. It just means that the E5 will continue in production as long as anyone wants to buy one. And I don't imagine they will sell very many more E5s since they can be had at bargain prices used, as E5 owners switch to other brands or OM-Ds. Are there really many people left who want to spend $1700 for a nice camera with 2008 sensor technology?
The second statement is the one that is the most troubling. If Olympus lost $170 million last year, then they lost that money selling P&S cameras and M4/3 cameras and lenses, because this is pretty much all they sell nowadays.
I don't think 4/3 has a future, no matter what hints, promises and assurances Olympus makes about 4/3. They are in no financial position to revive a line that was losing money. But now I'm starting to worry about how long M4/3 can last if the imaging division keeps losing that much money each year.

The renewed speculation about what Olympus is going to do with its camera division has almost certainly come about because of a presentation they gave to analysts at their results.

The slides show contains 2 bullet points on the imaging division

* Reduce personnel by 10% from March 2012

* Cut SG&A expenses 4bn YOY

There is then --> Further drastic reform is under review

The underlining is not mine it is Olympus's and it is the only planned action that is underlined in the presentation of the entire business.

And remember six months ago, Olympus was forecasting a profit for cameras and now it is forecasting a loss of 15% of sales. Anyway there is bound to be speculation about what 'drastic reform' of the business actually entails.

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