Prediction: What will Samsung do?

justmeMN wrote:

vasile wrote: I actually do not think Samsung is dumb enough to not realize what gem they have on their hands with the NX1.

Companies don't consider unprofitable products to be gems.

Not as simple as that. It is unprofitable because of market conditions and/or marketing strategy, intrinsically it is a good product, with potential, as recognised by many reviewers.

Pricing is/was good, in line with analogue products from competition.

The question is what to do. Past investment is a sunk cost as any finance analyst will tell you. The situation must be evaluated based on the situation "as is", regardless of the past investments.

What would I do? Well:

- until I have more clarity as to the market evolution, I would stop investing more money in it, I would reassign related workforce to other similar positions in my organisation so as not to lose them in case

- I would, however, keep producing the cameras to the extent that they sell right now since this is a "free" revenue stream.

- maybe I would release products in the pipeline (300mm?) if costs are small to bring them to market (i.e. if I judge that the limited additional investment to bring them to market will give customers an indication of my commitment to the system).

- I would also restrict my service and marketing activities to the markets which have enough volume to at least break even.

This way I would keep my options open whilst not losing additional money on a product that might still be profitable in the future.

Very good analysis. I tottaly agree. Even a minor software update(that a team of 2 or 3 programers can easily do) can give some confidence to the NX branding, and the NX500 and NX1 are still the cheapest, lighter and smaller A-B 4K video cameras with the best sensor in class.