Olympus survival strategy

Are you worrying? Numbers can tell you only so much... It does make a difference if it will sell 250.000 E-M1, or 250.000 E-PM2 - LOL. And what about inventory?
The loses are real regardless what they sell. Inventory would be the last thing to go. That means there would be no production, therefore no Olympus.
I always suspect there is a troll element in this type of headers. Or is the OP concerned that m4/3 will vanish as a system? Are you?
Or are we doing small chat? ;)
Nobody wants to buy expensive equipment knowing it will be worthless in few years down the road. The FT could not be a better example, and mFT is not really that far from it. In fact it is in a worst state than any troubled consumer product has been in so far.

Things may change, yes, but for now it does not look like it is happening. They may ship more than they did at the same period last year, but it also means they did spend more on building and pushing it around. And if they do not sell up to a certain numbers they will continue the same trend as it has been for them so far. Most people who see it know what it means - No matter how big the company is, it can not continue losing money indefinitely.
 
LOL - the world is full of cowards, and the forums make no exception. Let them tremble for any system.

However I found interesting that you have been preying upon those, trying to bring down 4/3 for years, and now switching to m4/3.
The thread is not about me. It is about Olympus losing money, and (as it is always open to speculations) what possibly could take place for the trends to stop. Quite a revealing discussion by the way ;).
I am surprised that our overlords have no rules against those who bring the evil eye :)
Hide and don't tell?
Can't they make a retrospective search? LOL
Again, the thread is not about the users (or any particular user). It is about the company whose financial trends many observers find peculiar. Don't you?
On the positive side m4/3 is proving to be the most universal, and thus hopefully the most resilient system of all.
For now yes, or rather almost, but not for Olympus. And not every user lives by today either. I don't, for example. Do you?
Let others ruin their life with those things...
What things ;) ?
 
Olympus should completely rid itself of all compact camera manufacturing, not just half.

Now that Sony has gone to full frame mirrorless bodies, they should just drop their aps-c system, start making bodies for their micro four-thirds sensors and force Olympus to let them use the Micro four-thirds mount so they have access to all the micro lens system. It's not like Sony had developed much of a lens line for NEX anyway.
 
Why would Sony be interested in acquiring a loss making division like Olympus imaging?

They already have an imaging division and can get access to Olympus technology via sharing agreements.

If Olympus drops out of the photography business it may well be benefical to Sony sales and many of the technology patents would be up for sale.

Olympus is more likely to be taken over by a company that wants to get into the business and has no presence there currently. And they are likely to be few and far between given the current state of the market
 
trembling at every financial announcement, wetting their pants at each press release, looking with anxiety at amazon sales, crying out loud : "the m4/3 system dying", "it won't last long", "the End is near", "survival!", telling all the World that they won't invest (the most misused word in this forum) in a dying system, etc.

Ironically, it's likely that Olympus, Panasonic, Sony, Nikon, Canon, Pentax,... will survive longer that those Cowards.

Luckily, there's still some Braves who enjoy their life without fearing too much about what tomorrow will bring.

And.....

--
Cheers,
Frederic
http://azurphoto.com/blog/
 
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Why would Sony be interested in acquiring a loss making division like Olympus imaging?

They already have an imaging division and can get access to Olympus technology via sharing agreements.

If Olympus drops out of the photography business it may well be benefical to Sony sales and many of the technology patents would be up for sale.

Olympus is more likely to be taken over by a company that wants to get into the business and has no presence there currently. And they are likely to be few and far between given the current state of the market
 
As was said above Oly has always considered the camera division as a showcase for processes that would be implemented in the Endoscope Division.

Can they at least recoup their expenses? I am at a loss to understand the Japanese microeconomics, but I know that they don't work as American short-termism. So I have stopped to care.

I have worked for a number of years in anticipating technology trends, and unless I am losing my hand, I have never seen a clearer case of success as m4/3.

Sure the whole camera sector is in saturation, the Yen has been too high, and smart phones are devouring everything. But at the same time so many companies are showing interest in m4/3 by stering product towards it, that it seems to me that profit might be hiding in its folds, if not present, future.
 
Take these numbers with a grain of salt because I quick Googled them:

Digital camera sale 2013: 60 millions.

Smartphones: 900 millions.

But even if there are better numbers to be found one can see that mobiles with cameras are soon in everyones pocket.

So who needs an extra camera? And for what?

I have found that people like to shot with their mobile because it is easy and you can edit in the device and share easily direct to the net. Almost all digital cameras do worse here except the Android driven.

DPreview.connect tested the Nokia 1020 vs a regular p&s with zoom. At wide end the mobile had no problem with the quality vs the p&s but even the 1020 with its 41 MPix pixelzoom couldn't deliver as good quality in the tele range as the p&s did.

So to answer the question above, an extra camera can give better quality, especially on the tele side.

Most people take pictures of other people at a café, in front of a cool building or view etc. The mobile does that quite fine for most.

There seam to be a demand for short DOF portraits (Bokeh) and good quality indoors in low light (typically restaurant shots).

Most people are happy with screen resolution, since the destination of the pictures are the net.

I think this is the biggest problem for the regular camera makers, they haven´t really changed their formula to cope with this situation. They need to analyze where their new sweet spot is and what can make people actually pick up an extra camera to drag along.

One example I can think of is parents taking pictures of their kids in all sorts of environments, they are probably a rather large group that can take the extra weight and cost to be able to catch the kids riding a carousel a bit away from their standing point etc.

I myself like to do more than the mass seams to do, so I am one of those 60 millions that did buy a new digital camera this year, well, I bought three actually...
 
Oh, I forgot one use case: that is the new 2013 trend word: Selfie.

A special developed Selfie camera so all the lonely people can take pictures of themselves to post on the net to look less lonely would probably sell well.
 
Originally, I thought the Oly/Sony linkup, that was going to have Oly designing lenses for Sony, would be for E mount glass. Now that Sony looks like they're backing away from E mount, and that Sony never could produce FF optimized glass for Alpha FF, I would assume that a fine lensmaker like Olympus would tackle the FF glass for the A7 that is needed. Sure, one can adapt any lens to the A7, but the system doesn't really exist until one has native mount glass optimized to work with the body.

Granted, the concept of the A7 hasn't quite been proven, and arranging a dual size flange that could mount µ43 glass plus a larger opening for FF glass would be interesting, but still...

One has to admit that a multi-aspect sensor that had two lines of lenses - one optimized for very small size, the other optimized for the strengths of the FF sized sensor, would be an interesting concept.

Especially if the size optimized glass already existed.

The other thing I really want to see is Sigma retooling the DP for µ43. Wouldn't replace my EM5 with a DP/µ43, but I'd love to add one for those times when a Foveon sensor would really come to life.
 
Well there is a sort of logical disconnect between the 'success' of mirrorless cameras or at least perceived success of certain mirrorless cameras and the underlying financials of the manufacturers involved. (Look at the current thread about the Fuji X system article in the NYT.)

For instance over the past 3 years Olympus has sold 1m 'mirrorless' digital cameras and has lost US$500m in imaging. That works out as a loss of approximately US$500 for every mirrorless it has sold.

So in order for M43 to 'survive' (which would be nice as I dearly love their product) they do need a sustainable business model which they clearly dont have and show absolutely no signs of achieving. I sincerely doubt that Olympus will have an imaging division in 5 years time.

Now is this really important or is it small chat? Well if Olympus disappears it isnt the end of the world, my cameras will still work and there are plenty of other systems out there. So I guess it is all really idle chatter. But people happily spend hours comparing the relative technology merits of say mirrorless and DSLRs - while however great the technology is, it will not matter a fig if it is a massive destroyer of capital.
 
FT didn't die, the large bodies with mediocre sensors died.

The glass works even better than it did before, now that the rather average sensor is out of the way.
 
FT didn't die, the large bodies with mediocre sensors died.
You were posting on this thread also,

All those Happy Bargain Hunters

As several others on the same subject
The glass works even better than it did before, now that the rather average sensor is out of the way.
That is not how it was announced and debated when it came out, did it? And yes, you are correct, it did not die. Its just that nobody wants it. And those who did buy into the system got swindled like no other.
 
FT didn't die, the large bodies with mediocre sensors died.
You were posting on this thread also,

All those Happy Bargain Hunters

As several others on the same subject
The glass works even better than it did before, now that the rather average sensor is out of the way.
That is not how it was announced and debated when it came out, did it? And yes, you are correct, it did not die. Its just that nobody wants it. And those who did buy into the system got swindled like no other.
 
Now unfortunately the 4/3rds group offered products that were neither noticeably 'cheaper' or 'smaller'. That meant as a business concept (which didnt make use of its competitive advantages) it was inherently doomed to failure from the get go. Noone can claim to be conned (well apart from shareholders of course) It wasnt as though they pretended their products were smaller or cheaper.

Luckily with M43 - which similarly has a competitive advantage in terms of both size and cost (especially with the mechanical mirror system removed) they are both offering products that are considerably smaller than their DSLR competitors. Unfortunately they havent really taken advantage of their cost advantage to undercut DSLR offerings and so unit sales and market share remain p*ss poor.

Although the header of this 3d is depressing, there are some new data which are interesting, such as Oly being dragged down by distribution and maintenance costs, and wanting to share them with Sony.
So it might not even be true that sales are depressed by high prices. We are talking about fixed costs, dragging down tghe company.

Now you might not be aware that Master Green never had any 4/3 equipment but parasited nonetheless the 1022 forum like a hungry ghost, with the probable aim of celebrating his nikons or canons, with Equivalence arguments.

I find funny that he attempts the same with m4/3 that has broken the Equivalence argument with a mix of small size and 'good enough' sensors.

You will notice also that these Equivalence freaks have no talent at all: they have at best purely technical, reproductive photography and therefore must hold to ransom otherusers with more talent by measturbating to the last pixel.

Anyway have a nice talk, perhaps you will convert the poor undead :)
Am.
--
http://www.flickr.com/photos/amalric/sets/
http://www.flickr.com/photos/amalric
 
..

Now you might not be aware that Master Green never had any 4/3 equipment but parasited nonetheless the 1022 forum like a hungry ghost, with the probable aim of celebrating his nikons or canons, with Equivalence arguments.
Like ..

I find funny that he attempts the same with m4/3 that has broken the Equivalence argument with a mix of small size and 'good enough' sensors.
No such attempts at all. Just post what I see relevant to the discussion.
You will notice also that these Equivalence freaks have no talent at all: they have at best purely technical, reproductive photography and therefore must hold to ransom otherusers with more talent by measturbating to the last pixel.
This is your talent,

http://www.flickr.com/photos/amalric/sets/

this is mine,


How is it looking, equivalent I hope, yes ;) ?
Anyway have a nice talk, perhaps you will convert the poor undead :)
Ouch ;) !
 
to share parts with Sony in order to cut cost/inventory
yes its a familiar strategy that they published within the financial documents a few years ago

the mirrorless concept allows that assembly can be considerably faster because it can be designed with a skeleton list of common plug in module components, it makes for a faster cleaner more cost efficient plant and cheaper design. And a product that has less line time, so less contribution to costs

the remaining problem is in having enough volume in components to keep the cost of those parts at their lowest, and the easiest way to achieve that is a collaboration plan with other like minded mirrorless manufacturers. Hello Sony. Volumes are the secret to how Canon and Nikon can offer SLRs for a small handful of hundreds of dollars, its a matter of higher volume equals lower unit cost. Sharing components means that your parts volume can effectively be doubled overnight, there are significant savings in doing this.

of course this assists Sony as much if not better than Olympus, because Olympus have been the greater part of mirrorless as a group

and its a two way trade, as we are all aware that units like the IS system and lenses can go to Sony, and sensors can come back, but there is more to it than that. Plant that can keep in continuous production of a single module saves money on dead time in line changes.

if they are sharing inventory centres we may see a few plant rearrangements too
inventory is a huge addition to costs, and the logistics chain (including inventory and packaging) can be 40% of the cost of product.It would be just common sense to plug these elements together because larger volumes inevitably mean lower price structures per unit. Monies otherwise lost to costs cant be a part of profit.

all up, this appears to be a more effectively managed collaboration that the previous Panasonic deals
and I notice they bring up the fear and doom about the share price, well lets be clear on that
The market doesnt appear to share much fear about where they are going, despite a lousy margin.

Olympus Corp (TYO:7733

and if we mistakenly think that's easy, lets see for instance where Nikon are going

NIKON CORPORATION (TYO:7731)

not that theres anything critical going on there,
Nikon lack that diversity others have
well lets hope anyway...
 
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