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...