Correction: NOT WSJ but Yahoo Finance: Olympus one of 10 brands to disappear in 2014

Started May 26, 2013 | Discussions thread
rrr_hhh
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Re: WSJ: Olympus one of 10 brands to disappear in 2014
In reply to dpreviewreader, May 26, 2013

dpreviewreader wrote:

s_grins wrote:

Read this article again. For me it is clear that Olympus is going to stop paying dividends until it restors profitability. Also it is clear tha Olympus is exiting P&S market, but not DSLR .

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Looking for equilibrium...

The Olympus management says it will not pay dividends until profitability is restored but the article uses its criteria to predict which brands will disappear. I am not saying this will happen,  but the fact that such articles are being written indicates financial analysts do not expect Olympus to remain in the camera business much longer.

I think the guy who wrote this article isn't very well informed : he focalized on the P&S market and got impressed by the number. He doesn't seem to be aware of

a) the Olympus strategy plan which will cut in the P&S business,

b) the existence of mirrorless and the innovation potential it has (what is the use of such precision if they don't take innovation potential in account ?)

c) they focal used only on the US market, which isn't the whole world

d) they are ignoring the fact that the camera dvision is only a small division of the Olympus corporation, the medic instruments being the most important and the most important part is making profit

e) what about Panasonic then ? They have an even smalle market share, they are loosing big money in the TV department, they are not a long standing camera manufacturer like Olympus, etc..  And what about the Samsung camera division ?

I think that the Olympus camera division is in a difficult situation, but I think that Olympus will hold on it because :

They have a long tradition of manufacturing cameras,

They have just invested in a lot of innovation, producing little jewels for MFT and I'm sure that after all these efforts which are beginning to bear fruits, they don't want to let it go. But they will let the P&S go away because of the smartphones competition.

They are integrated in a much wider and profitable corporation and one which has connection with the camera business : microscopes and other medical gear needing optical components, so it isn't as if it was a totally isolated division/department of the corporation.

Of course the attitude of the new board of directors, with the new Sony majority and the strong presence of the bankers in the board, one could see some decisions difficult to swallow for the older Olympus management.

I think that what Thom Hogan writes over at Sansmirror  is much better informed than what the WSJ reporter has come out with.

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