Official statement on Sony A-mount future...

Started Sep 26, 2013 | Discussions thread
don1jam Regular Member • Posts: 315
Re: Official statement on Sony A-mount future...

theswede wrote:

If X is more profitable than Y, then a company will prioritize X over Y.

Provided X and Y are in completely overlapping market segments. If they are not, then they will prioritize the one with higher growth potential, regardless of present profitability. And they will not drop a profitable product just because they have another which has more profits; in fact, it is likely the profits will be used to subsidize growth of the less profitable market.

Do you really think compact car development is de-prioritized just because the profit is higher on larger cars? On the contrary, that is where the cut-throat competition exists and efficiency in production are pushed the hardest. Yet the compact car makers are not getting out of that business, or lowering investment in it.

Business does not reduce to simple statements like this. Just try comprehending a strategy description from a publicly traded company sometime. They're in the quarter reports. You won't find any "X is more profitable to us so we're prioritizing that" statements in any but the most blatant cases (like Microsoft never making a Windows competitor). And when you do find it, you find a company which you know will soon be in trouble.


You do realize in your first sentence you reinforced and agreed with my point , as you stated : "Provided X and Y are in completely overlapping market segments."

The market segment of interchangeable cameras for E mount and A mount completely overlap. Both mounts will carry full frame and APS-C sensors, interchangeable lens, and bodies of varying sizes. Whichever one is more profitable they will prioritize their efforts there. It's as simple as that.

Your example of cars is not applicable because compact cars do not overlap with larger cars. Someone in the market for a Yaris does not buy a Lexus and vice versa.

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