Mirrorless Takes Another Hammering

Started May 17, 2013 | Discussions thread
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Re: Mirrorless Takes Another Hammering
In reply to ed2002, May 18, 2013

ed2002 wrote:

nikkorwatcher wrote:

maybe the problem is that mirrorless is following developments in sensors too closely and the product lines change too fast? Every time they design a camera and fabrication process they have to make the money back. For a production run of a year that's difficult. They're squeezed in the middle re price and quality.

I think you are making the same false assumption as the OP.

The sub $200 P&S lines of olympus lost a great deal of money.  In the news item that followed Olympus's decission to exit that market segment it said it would concentrate on high margin sales of of interchangable lens cameras.  That seems to say that given the great lack of evidence, that Olympus did not in fact lose a great deal of money on the m4/3.  They simply did not sell as many as forecast.

You have to sell at least X amount in order to make the first bit of profit. Until you do that, you are still paying back the R&D and startup costs for the product you sell.

Suppose a camera has a profit margin between labor and materials and selling price, of $100. If the company needs to sell 100,000 of these to cover the R&D and startup costs, until they sell camera 100,001 they have not made any profit, they're running a loss. If they predicted selling 150,000 cameras and only sell 90,000, they have not just made 60% of their targeted profit. They've made a loss.

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