The difference is that a company of Canon's size can easily absorb such stategy if the end result means that they maintain overall market strength. Besides, with the overwhelming number of sales being in the entry-level segment, a sacrifice on the upper segment isn't going to have as much of an impact on their bottom line. Heck, the 30D doesn't even show up in this graph. Nevertheless, the 30D (and its successors) still offer that which their entry-level bodies don't offer: larger size, magnesium alloy bodies, faster frame rates, etc. A Panasonic mass-market body would probably be very similarly spec'd and sized to Oly's mass-market body, thus increasing the potential for canabalization.
Plus, in Oly's case, they have so little market strength to begin with, and far lower profits than Canon, that any cannabilization of their market would have a much more severe consequence. And canabalization in the mass-market entry-level segment, where most manufacturers sell most of their bodies, would have an even greater consequence for Oly because it hits them where it's going to hurt the most-- in their bread-and-butter mass-market sales.
Plus, in Oly's case, they have so little market strength to begin with, and far lower profits than Canon, that any cannabilization of their market would have a much more severe consequence. And canabalization in the mass-market entry-level segment, where most manufacturers sell most of their bodies, would have an even greater consequence for Oly because it hits them where it's going to hurt the most-- in their bread-and-butter mass-market sales.
Nothing wrong with such an "admission". The hallmark of any agile company is the ability to dance on a shifting rug, responding to market changes in order to maintain their advantage. There's no pride in not making such an adjustment. The pride comes from making the adjustment and maintaining your market strength. Maybe Oly could have benefitted from the same attitude in dealing with their outdated E-1 "flagship".Right now, until they bring out a new 10 MP (or even 12 MP) 40D,
they have a major hole in their product line. And if they bring
out the 40D this year, they will clearly have admitted that they
took a hit on the 30D.