Olympus trys to Calm our fears once more

Started Feb 14, 2013 | Discussions thread
Craig from Nevada
Craig from Nevada Veteran Member • Posts: 4,905
Re: Olympus trys to Calm our fears once more

About the only thing we know for sure is that the imaging division is bleeding cash.  The bleeding has gotten worse over the past 12 months, not better.  This has to be stemmed.

Right now there are too many sellers chasing too few buyers.  These buyers are tough to catch given the need to update and upgrade systems continuously.

There are short-term and long-term responses.

In the short-term, the easiest way to stem this trend is to cut the losers.  I suspect that the point and shoot line is killing them.  I think it is killing everyone.

I don't think they are making money on OMD.  The camera is a critical success, but is it a commerical success?  When the camera was announced, I think many of us were astounded by the price point.  It is a heck of a deal for the customer.  That said, I think if you are going to give away the razors to sell the blades, you have to ask can you sell the blades.  In this case the lenses.  I think the Panasonic line of 14-35mm and 35-100 is a bit pricey, but they are the only two lenses you will ever need when you hit the road or the trail--okay maybe a 7-14mm, but an Olympus m9-18mm is a couple of hundred bucks cheaper..

Olympus in response will sell you a bunch of very fast primes.  The 75mm is by all accounts a really great lens.  Nice if you are upper level but for the hobbyist?  I don't know.  They need a broader line of lenses to appeal to a broader range of customers.

This comes back to four-thirds.  Where does it fit into all of this in 2013?  Well they have a pretty nice line of lenses for all customers segments (standard, high, and super high grade), but no cameras.  The only market for these lenses right now is the used market. They can't be selling many new lenses when the price differential is so great between used and new (all the people jumping to canikon). I can't see how they can reinvigor the DSLR lens sales with a new camera.  It may stablize the prices for used lenses, but to what end?

A strategy would be give away the blades to sell razors.  In this case, they slash the prices of HG and SHG lenses while selling a camera with some serious mark up. The lenses would be priced to compete with Panasconic lenses.  We see used four thirds prices for a SHG 7-14mm falling to levels where they equivalent to Panasonic 7-14mm lenses.  High grade lenses, they have no market right now.  This all seems dubious to me.

I think long-term, there will be a serious consolidation of manufacturers.  Many are bleeding. The "For Sale" sign should be out at Olympus.  It will look like the airline mergers we have seen recently.

I see a merger announcement more likely than a DSLR.  A new DSLR won't stop the bleeding.

If there is a new camera in the thrid quarter and a very pricey adapter to use 4/3rds.  Olympus declares the goal of "one beautiful system" has been achieved and the imaging division is bought out.

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