Start of a price shift?

Started Jun 5, 2013 | Discussions thread
Eamon Hickey
Veteran MemberPosts: 3,170
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all prices dropping -- yen devaluation
In reply to sderdiarian, Jun 5, 2013

sderdiarian wrote:

The Fuji XE-1 price has been reduced to $799, and Sony's NEX 6 is now $748, both APS-C sensored mirrorless bodies incorporating an EVF. The NEX-6 with the new 16-50mm power zoom is $898.

This may in part be in response to the E-P5's high intro price of $1000 without an EVF; perhaps they're looking to take advantage and grab market share.

Prices in the U.S. and Europe are coming down pretty much across the board, for all Japanese manufacturers and for much of their product lineup. The reductions generally take the form of rebates. (Rebates are everywhere in the U.S. right now -- not sure about the various individual countries of Europe, but I know Olympus UK just announced a new rebate program.)

This is all in response to the 25-30% fall in the value of the yen versus the U.S. dollar and the Euro, which began around November of last year.

That yen devaluation effectively makes goods denominated in yen -- which nearly all cameras are -- about 25% cheaper to import to the U.S. and Europe. The distributors, who are in nearly every case just subsidiaries of the manufacturers, pass that savings on primarily through rebates (less often through actual reductions in the wholesale price of the products). That's definitely the pattern in the U.S.; again, there may be variations in Europe that I'm not as familiar with.

There are some exceptions to the price reduction trend. In cases where a product continues to sell out its production at its original price, the manufacturer is unlikely to lower the price. They'll pocket a windfall profit. That's why a few cameras aren't seeing rebates.

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