Panasonic restructures non profitable business

Started Mar 25, 2017 | Discussions thread
Silverback46
Silverback46 Senior Member • Posts: 1,302
Re: Would the very best 20mp sensor product sell well?

Tom Caldwell wrote:

jwilliams wrote:

Tom Caldwell wrote:

How YI M1 manages to sell a M4/3 camera with 20mp sensor as a budget model defies my explanations. I can only presume that they have placed a very large order with Sony and expects the Chinese domestic market to soak it up.

This is what mystifies me also. Cheap camera with latest sensor is way less than cameras with older sensor. I think Oly & Panny would have been better off just biting the bullet, ordering a large qty and using the new sensor in all models. I think they adopted a two tier system strategy just to be able to price the few models with new sensor higher. Might be worth something in the short term, but bad long term. Although nothing wrong with 16 MP sensor, m43 is looking stale for lack of a better word.

I think that we will just have to get used to sensor size becomeing more static and changing less often. It is a big ask for the management to punt on a large order for sensors when the price per unit is obviously becoming more than the market will bear.

It also must be an upcoming headache for Sony in that they also need to sell premium priced new tech sensors to keep their own business model afloat. Selling cheaper 16mp sensors forever on a declining market cannot also be good news despite their own FF sensor success. Good cameras are getting too expensive for common buyer's continuing interest and only the more well heeled and decidedly interested are paying the now apparent premium pricing being asked for the best models.

Slower market sales will obviously reflect of Sony's sensor manufacturing business as well.

I doubt if they gave YI any special deal that was based on anything other than a huge volume purchase agreement. If they cannot buy the quantities ordered I would suggest that Sony has a huge clawback somewhere in their contract that could spell severe financial trouble for YI. In turn YI, as I have already suggested, might think that they can sell enough cameras on the Chinese domestic market. But if this fails then there is quite a prospect that the Sony clawback will render every camera they ever sold by them unprofitable in retrospect.

Another angle is that if YI has a good buy price better than what Olympus and Panasonic dare to order enough to be eligible for then they might consider buying these sensors form YI at a small profit to them - just to be free of the risk associated by committing to huge numbers to get a price.

I doubt if Sony would be so silly as to make all the sensors for YI into stock but only to on-going delivery requirements. But if YI failed there would be whatever stockholding Sony had held at a better price than normal.

So in the end the 20mp sensor is almost as much Sony's problem to sell as it is those that wish to buy it have their own problems to overcome.

Some interesting thoughts Tom. One thing I would consider though which could be part of that is the planning. A lot of people online indicate the planning involved in the creation of a specific camera model and the time it takes to bring it to fruition. The Gx8 and Pen-f supposedly share the same 20 meg sensor of the YI M1. They were introduced in July 2015 and Jan 2016 respectively. That would mean the 20 meg sensor was considered and tested probably in 2014. The timing of release seems interesting to me with all of the models that were then released after by both companies.

Silver

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