Excellent new article about Olympus MFT strategy

I liked the paragraph.....

........................................................

At the end of the day, I have to say that Olympus has the most clearly articulated product strategy of any manufacturer that I've talked to, and in some ways the greatest market security, given that they're addressing the needs of a huge swath of photographers in ways that no one else is doing.

.........................................................

That starts to make the last 8 years of never ending doom predictions look a little silly.
Get back to me when Olympus' strategy results in an actual (camera) Imaging Division profit. :-)
You cannot read too much into divisional loss reports without having access to deeper analytical knowledge of how the financial figures are prepared. Certainly paper losses are paper losses. But if the camera division (for instance) was carrying part of the overhead of the business that could not be reduced then this amount would have to be carried by their medical division if the camera business was not there to wear it. In the end the company as a whole may be no better off without the “loss making” camera business.

If a professional accountant would need more (private) information to be able to express a judgement then I would wonder how anyone else could reach a satisfactory conclusion based simply on published figures and internet chit chat.
As for market security, the next BCN Award will confirm that Olympus has dropped from #1 to #2 in Japan mirrorless sales.
 
Dave Etchells of Imaging Resource, gets it. A quick but recommended read.

https://www.imaging-resource.com/news/2018/12/12/a-full-frame-olympus-not-just-no-but-heck-no

Jan
Thanks Jan,

But I could not be bohered reading the article fully - it lost my attention fairly quickly for the follwing reasons:

1) “Olympus is historically into compact cameras” then suddenly this is out the window and it is into big weather sealed cameras and lenses for outdoor use (?)

2) The Pen-F is arguably Olympus’ small camera offering but it could hardly be described as a camera for large lenses for outdoor use. I will admit it as being an extremely competant camera, but my comment stands.

3) It is blandly accepted that Panasonics stated promise to keep supporting M4/3 is only “lip service” and that they are off on the FF mount tangent. That R&D dollars will be diverted to the FF effort as if Panasonic R&D allocation is a fixed amount. There is no consideration for the possibility that Panasonic presumably could easily find completely additional dollars to fund its FF mount foray. In fact I doubt very much that re-allocating all of the M4/3 previous R&D to FF efforts would be sufficient. M4/3 is a quite mature system these days and their FF effort has started from (almost) square one. Why should Panasonic run away from a successful M4/3 position where in recent times they have almost made 100% running in new interesting camera bodies? Olympus could be seen to be substantially the one that was dragging the chain here. In fact if Panasonics (lack of) new camera product in recent times had matched that of Olympus then the knives would surely be out and sharpened for the future of M4/3. My view is that it has only been Panasonics obvious support for its investment in M4/3 that has kept the mount format in recent times both relevant and vibrant.
This part bothered me as well. Why is the reality of how camera gear is developed lost on even supposedly "professional" reviewers and writers. Most of the R & D for the L series has already been allocated, even while Panasonic was coming out with the GH5, GH5s and the last few lenses. It's not like they just decided to produce the cameras a few months ago and went searching for funds. This process likely started 3 to 5 years ago at least.

With a company as diverse as Panasonic, saying that they won't have the money to continue timely development of both m4/3 and L mount is quite flawed. They maintain a good sized share of the pro video market, not just with the GH series, but their assortment of dedicated video cameras. They make TVs and refrigerators and have industrial products as well.

4) Why would Olympus not view their supposition that Panasonic is leaving M4/3 at some time in the future with extreme trepidation instead of what seems to be reported as something along the lines of “we are better off without them” attitude.

5) Panasonic did try and make a high quality tiny systems camera body in the form of the GM1 an GM5 but by all accounts this was a failure. Whilst Olympus answer as the E-PL9 might closer resemble an entry level body and to compare that camera even to the GX950 might be considered a mild insult.

Maybe there is more to it than what I found in the article but it sounded more that an “Olympus feel-good” exercise. I hasten to add that I really like Olympus product - especially their lenses - and that Panasonic needs an involved Olympus to help keep M4/3 alive and it may just be some sort of despair on Panasonics part over the recent dearth of new Olympus camera body product that may have prompted the safety valve of getting involved in the L-Mount consortium - something that could not be a decison made lightly - only one where the huge expenditure involved was justified by the good chance of market share in the lucrative FF ML was on offer.
I think many opinions on this matter come down to the "either/or" attitude people have toward FF vs m4/3. This is not how pros think. Panasonic has even stated that they view the L mount as making FF cameras available to m4/3 users who want to add FF while keeping with the Panasonic/Leica nameplate. This isn't a process of abandonment: it's a sensible business model.
 
It is noticeable that Olympus stopped developing the OM system around the early 1990s which was when they made the crippling losses on unwise investments which they subsequently covered up for 20 years.

They didn't officially stop it until a few years later but no new products appeared from around that period.

It is possible that they didn't have the money to invest in a new AF compatible lens mount like Canon had a few years earlier because of those losses.
Yep, I hear what you say - what we have had was what was in the pipeline at the tiime of the recent crisis and lenses which are just a matter of designing at reasonably low R&D costs plus the usual amount of tooling up, etc which is what lens manufacturers “do” and is not R&D intensive.

So the three new camera bodies are “brand new incentive” and it would take some time to get “productive R&D for camera bodies” back on track. So this is as good an explanation as any why Olympus camera body product has been scarce, why Panasonic has put out quite a few bodies on its own account and is somewhat peeved at the fact that it has been “their” emphasis on camera body R&D that has saved M4/3 from the brink of “no new cameras” disaster.

R&D is conservatively written off when it occurs but cost recovery is made separately against the product as quickly as it is possible over a percentage of product actually sold So the best way to “improve” the bottom line quickly is to severely curtail R&D expenditure. Add that the recovered R&D previously written off in earlier published accounts will also help make over the bottom line in later years.

Therefore the illegal fudging could be replaced by more recent legal fudging - but this is only an auditor’s surmise.

I wish Olympus well and presume and hope that everything is now back on track.
 
Tom,
Thanks Jan,

But I could not be bohered reading the article fully - it lost my attention fairly quickly for the follwing reasons:

1) “Olympus is historically into compact cameras” then suddenly this is out the window and it is into big weather sealed cameras and lenses for outdoor use (?)
The MFT cameras and lenses ARE small, compared to their direct FF counterparts. For example, I used to own and carry a Nikon F5 and AFS 600mm f/4 lens, so I do think the E-M1X and 300mm f/4 (for me, the corresponding MFT) alternative is very small, and not big at all.

The alternative (often called 'equivalent', lol.), a FF cam with a more compact, smaller aperture 600mm lens, is not even remotely interesting! Not to me, at least. Nor are the apsc slr' and lenses, I mean, wow, really? Sure they perform...but I'm here, because I like it done another way, lol!

IMO, Olympus has consistently been very clear on this subject, saying essentially, 'we like to approach the problem of, a design balance between quality and portability, in our own unique, and when possible, proprietary way. This (at least to me) has been consistent and clear over my years using the products.

My gear in 1988, an OM-4 and Motor Drive 2, a 5 fps drive with power rewind and the first to have a lcd display. The multi-spot metering system was from another planet.
My gear in 1988, an OM-4 and Motor Drive 2, a 5 fps drive with power rewind and the first to have a lcd display. The multi-spot metering system was from another planet.

I got my first OM in middle school (my very first SLR camera was a Ricoh, but the plastic bottom plate broke off when I had a zoom lens mounted on a tripod. I said, never again a cheap camera.) , had an OM-2n in art school and got an OM-4 after moving to the west coast in the mid 80's. Had an OM-4T along with the F5 into the nineties. Came upon DPR a while before buying an E-10 new for about $2,000, if I remember. I do consider myself very fortunate to have had the opportunity to use such fabulous gear from an early age.

I recommended this article, because I shared an opinion, summed up here:

........................................................

"At the end of the day, I have to say that Olympus has the most clearly articulated product strategy of any manufacturer that I've talked to, and in some ways the greatest market security, given that they're addressing the needs of a huge swath of photographers in ways that no one else is doing."

.........................................................

I agree with the above, in the sense that I think Olympus does their own thing, with products that are (again, to me) quite clearly differentiated from the nearest other products I might consider. In a way I very much like right now, if not so much in the 4/3 era.

I think Olympus has a unique value system, that is reflected in the unique products it produces.

Its not an just an personal opinion, but also a fact, that I have benefitted directly from the 'Olympus Way' of technical innovation and quality over the years.

This history has built my respect, trust and loyalty.

The way some other people often talk here (I don't mean this topic, but in general), frankly, makes me wonder why they are here, because they sure don't seem to belong.

My 2c.

Jan
2) The Pen-F is arguably Olympus’ small camera offering but it could hardly be described as a camera for large lenses for outdoor use. I will admit it as being an extremely competant camera, but my comment stands.

3) It is blandly accepted that Panasonics stated promise to keep supporting M4/3 is only “lip service” and that they are off on the FF mount tangent. That R&D dollars will be diverted to the FF effort as if Panasonic R&D allocation is a fixed amount. There is no consideration for the possibility that Panasonic presumably could easily find completely additional dollars to fund its FF mount foray. In fact I doubt very much that re-allocating all of the M4/3 previous R&D to FF efforts would be sufficient. M4/3 is a quite mature system these days and their FF effort has started from (almost) square one. Why should Panasonic run away from a successful M4/3 position where in recent times they have almost made 100% running in new interesting camera bodies? Olympus could be seen to be substantially the one that was dragging the chain here. In fact if Panasonics (lack of) new camera product in recent times had matched that of Olympus then the knives would surely be out and sharpened for the future of M4/3. My view is that it has only been Panasonics obvious support for its investment in M4/3 that has kept the mount format in recent times both relevant and vibrant.

4) Why would Olympus not view their supposition that Panasonic is leaving M4/3 at some time in the future with extreme trepidation instead of what seems to be reported as something along the lines of “we are better off without them” attitude.

5) Panasonic did try and make a high quality tiny systems camera body in the form of the GM1 an GM5 but by all accounts this was a failure. Whilst Olympus answer as the E-PL9 might closer resemble an entry level body and to compare that camera even to the GX950 might be considered a mild insult.

Maybe there is more to it than what I found in the article but it sounded more that an “Olympus feel-good” exercise. I hasten to add that I really like Olympus product - especially their lenses - and that Panasonic needs an involved Olympus to help keep M4/3 alive and it may just be some sort of despair on Panasonics part over the recent dearth of new Olympus camera body product that may have prompted the safety valve of getting involved in the L-Mount consortium - something that could not be a decison made lightly - only one where the huge expenditure involved was justified by the good chance of market share in the lucrative FF ML was on offer.
 
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Dave Etchells of Imaging Resource, gets it. A quick but recommended read.

https://www.imaging-resource.com/news/2018/12/12/a-full-frame-olympus-not-just-no-but-heck-no

Jan
Maybe they should stop heavily rationing features and technology for the sake of market segmentation? Give consumers more than new denim colorways in exchange for the hefty price increases the last few years? That would show that they're serious about it.

Panasonic has far more interesting and featured products (cameras + lenses) at each tier below the top.
 
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Olympus is giving here marketing answers to some degree- for example regarding Panasonic, etc.

And as for traditionally into compact then doing big boddies- yes, good Q. But I will concede maybe the EM1X won't be as big as I originally thought, thought still bigger than an EM1 MKII it seems (if the rumor and leaked pics are correct). I still think they should focus on a top pro em5 mkiii. Hoping they do that.
 
This makes me happy. I sincerely hope Olympus though, grants PenF size and EPL9 sizes some top level tech (ditto for an EM5 MKIII), to really grab the top performing compact title very hard.

I do agree with them that if they are the "last ones standing" then they have a market to themselves. This is why I want them to focus on what they say they will focus here- because it presents the unique market/ marketing selling proposition of mFT.

Totally agree with them not going FF.

It also means that if Panasonic is going to slack on smaller cameras, I am going back to Olympus, it's that simple.

I care more about my photography, these are tools to me.

--
Raist3d/Ricardo (Photographer, software dev.)- I photograph black cats in coal mines at night...
“The further a society drifts from truth the more it will hate those who speak it.” - George Orwell
 
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Sounds as if they have a viable plan, but now they have to get the word out to prospective buyers.

I cannot recall the last time I saw an ad from Olympus -- much less an effective ad that really stated the advantages outlined in the article. Anyone remember those videos for the old E-1 DSLR where they held the camera under a running faucet? Any of you older folks remember the Pen-F ads showing the size of the camera?



37a1137a21aa4079aa1eca8e98d2144f.jpg



With the eyes of the bloggers and press glued to full frame for the next few months Olympus will have a tough time getting their message out. They need to up their game.

For what it is worth (not much), my own opinion is that full frame will be a short lived phenomena. Once people catch on the the size, weight and cost of a FF system I think there will be a fairly quick retreat -- within maybe 3 years or less. The question is can Olympus (and maybe Panasonic and Fuji) sell the advantages of smaller sensors and get in position to take advantage.

I wish them well.

Gato
 
Well I was suggesting that as an explanation of why the OM system was abandoned without a replacement rather than any recent reduction in models.

When these losses were discovered in the recent scandal the company was never seriously threatened as they were, by then, a larger company and time had shrunk the debt (relatively speaking).

The reason the share price shrank so dramatically was the 'what else' factor when the stock market didn't know the full story nor what else might be lurking in the woodshed.

Once the situation was clearer and a deal with Sony was done (could have been with one of many other suitors) to buy 10% of the stock to reassure the markets that the company was a sound investment, the share price didn't take too long to recover to close to its previous value.

Much like the behaviour you see on DP Review, the stock markets tend to have a herd mentality and it is all pretty much based on perception and confidence where people tend to (over) analyse and (mis)interpret everything when the spotlight is on a company.
 
12-100mm f4 seems aimed at travel photography. Why bother with 12-40 and 35-100 when you can take just that lens. (Although I personally love the 7-14 for travel, great for architecture.)
 
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With a company as diverse as Panasonic, saying that they won't have the money to continue timely development of both m4/3 and L mount is quite flawed. They maintain a good sized share of the pro video market, not just with the GH series, but their assortment of dedicated video cameras. They make TVs and refrigerators and have industrial products as well.
Panasonic also makes toilets and bicycles. Probably at a tremendous profit.

Panasonic toilets:

https://www.dpreview.com/forums/post/54483986

Panasonic bicycles:

https://www.dpreview.com/forums/post/54555564
 
Good read. Much preferred over the often seen ‘m43 is dead’ stuff. I love the versatility of the system and everything is more than good enough for me. Someday I expect it t get even better when new organic sensor technology replaces silicon Sony tech 😃
 
Dave Etchells of Imaging Resource, gets it. A quick but recommended read.

https://www.imaging-resource.com/news/2018/12/12/a-full-frame-olympus-not-just-no-but-heck-no

Jan
The things that sum up Mft for me:

- relatively small camera bodies (and scaleable, with grips, prime lenses vs zooms etc)

- weather sealing, weather sealing and weather sealing (huge point for me)

- excellent lenses: F2.8 zooms that cover a big range and cracking primes

- ergonomics and menu system that feel like second nature

- relatively MORE or DEEPER DOF for the nominal F stop (for 99% of my work, more DOF is an advantage and a virtue)

- manageable file sizes (for laptop LR processing on the go)

I don't consider changing system anytime soon.

(At one point in my life, money and whim permitting, I may try out FF with a few fast primes, maybe picking up a second hand system, but I don't feel an urge, more a curiosity, but it is the same kind of curiosity as I have for a rangefinder or MF cameras.)

--
Roel Hendrickx
lots of images: http://www.roelh.zenfolio.com
 
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Murata-san made the point that those other players are in the process of leaving behind an important and very significant segment, namely people for whom compactness, light weight and ruggedness are supremely important.
I couldn't agree more. But it does make me wonder how this insight relates to what Olympus actually has been doing for the last couple of years, with them focusing on relatively large 1.2 lenses and now producing the largest-ever MFT camera in the EM-1X.
But the slower smaller alternatives are available for those that want them. Now we have fast very high quality primes for those that want those and willing to pay up. Sounds like a pretty good strategy to me.
The rumours of Olympus announcing three new cameras in 2019 and focusing on their premium rather than their pro line in the future has me cautiously optimistic Olympus will turn back to their roots. Let's just hope the new premium lenses will be weather-sealed.
 
With a company as diverse as Panasonic, saying that they won't have the money to continue timely development of both m4/3 and L mount is quite flawed. They maintain a good sized share of the pro video market, not just with the GH series, but their assortment of dedicated video cameras. They make TVs and refrigerators and have industrial products as well.
Panasonic also makes toilets and bicycles. Probably at a tremendous profit.

Panasonic toilets:

https://www.dpreview.com/forums/post/54483986

Panasonic bicycles:

https://www.dpreview.com/forums/post/54555564
Many years ago I owned a Panasonic mountain bike. It cost less than comparable models from dedicated bike makers, but was just as good.

This extensive diversity means Panasonic has pretty deep pockets if they ever need to shift funds to R & D in their consumer imaging division.
 
I am trying to be a realist with the scales taken off my eyes.

I like Olympus products, especially their lenses but I found the E-M1 interface rather awkward and convoluted compared to the more consistent and thought out for digital interface used across many Panasonic camera bodies. This is just my personal opinion, not a reflection on Olympus innovation. My thoughts are that Olympus started with the well thought out mechanical interface that was evolved over many years as slick for slr film cameras. Film cameras of course had less need for many extra buttons and switches - their interface was simpler. To my way of thinking Olympus just took a mechanical system and tacked the extras on. This will suit those that are used to it and have come to like it.

The control wheels are very well placed on my E-M1 and wonderful to use when they both were made to work as they should. The SCP that is regularly raved about would not be so rave-worthy when compared to the Panasonic touch screen interface. But I am not posting this to set up an argument as to which is best but more to suggest that Olympus is great but it might be better seen without the aura of self indulgent belief that they have steered the only successful digital camera evolution.

But I have used many digital camera brands and in some have noticed the gradual evolution in their control structure. In my opintion the Panasonic (and Ricoh) bodies at least started from a clean sheet and have been evolved as a more pure digital camera control system. I don’t expect serious Olympus users to agree as to use something consistently is to know it.

All I know is that coming from trying at least five other brand types the Panasonic control system was easier to adapt to than that of Olympus.

So the article about Olympus reads as an Olympus “feels good” and some postulations that may be true of Olympus are equally true for other brands. The most obvious is that Sony as an electronic goods manufaturer came from nowhere to be a brand on everyone’s lips as the FF ML success story of the moment. Even Panasonic that “microwave company” seems to get little regard from some Olympus users has been leading the new M4/3 camera body charge in the last few years and matching Olympus blow by blow for lens releases.

So Olympus is good but they have been the one dragging the M4/3 chain in recent years.

I look forward to the E-M1x - I might even buy one - I don’t dislike Olympus product but am only deflating that little happy-bubble that the linked article set up.

In financial terms Olympus is giving every indication of struggling and that cannot be dispelled by happy words from the coach - it will only be countered by more innovative product on the ground and that can be evaluated when it (finally) comes to fruition.

But in the meantime three cheers for Olympus M4/3 needs you .... :)
 
Murata-san made the point that those other players are in the process of leaving behind an important and very significant segment, namely people for whom compactness, light weight and ruggedness are supremely important.
I couldn't agree more. But it does make me wonder how this insight relates to what Olympus actually has been doing for the last couple of years, with them focusing on relatively large 1.2 lenses and now producing the largest-ever MFT camera in the EM-1X.
But the slower smaller alternatives are available for those that want them. Now we have fast very high quality primes for those that want those and willing to pay up. Sounds like a pretty good strategy to me.
Yes, but we are talking about where R&D money is being spent. And in the past couple of years, this certainly has not been the MFT core area of small, light, and affordable.


And yes, while the MFT lens lineup is pretty good, there are a few areas where new lenses would be welcome. Small weather-sealed primes is one. UWA prime is another. Better options below pro-level at both the UWA and the super-telephoto end. I'd personally like a weather-sealed, variable aperture 12-100, a new take on the 9-18, something in the 200-300 range that's better than the 75-300 and lighter/cheaper than the 300 pro, and so on. It's not like the lineup is complete. And the EM5-III has been a long time coming now.


I am simply pointing out that Olympus has not been following the strategy discussed in the article. Rumour has it that they are returning to it, so I am cautiously optimistic.
 
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I am trying to be a realist with the scales taken off my eyes.

I like Olympus products, especially their lenses but I found the E-M1 interface rather awkward and convoluted compared to the more consistent and thought out for digital interface used across many Panasonic camera bodies. This is just my personal opinion, not a reflection on Olympus innovation. My thoughts are that Olympus started with the well thought out mechanical interface that was evolved over many years as slick for slr film cameras. Film cameras of course had less need for many extra buttons and switches - their interface was simpler. To my way of thinking Olympus just took a mechanical system and tacked the extras on. This will suit those that are used to it and have come to like it.

The control wheels are very well placed on my E-M1 and wonderful to use when they both were made to work as they should. The SCP that is regularly raved about would not be so rave-worthy when compared to the Panasonic touch screen interface. But I am not posting this to set up an argument as to which is best but more to suggest that Olympus is great but it might be better seen without the aura of self indulgent belief that they have steered the only successful digital camera evolution.

But I have used many digital camera brands and in some have noticed the gradual evolution in their control structure. In my opintion the Panasonic (and Ricoh) bodies at least started from a clean sheet and have been evolved as a more pure digital camera control system. I don’t expect serious Olympus users to agree as to use something consistently is to know it.

All I know is that coming from trying at least five other brand types the Panasonic control system was easier to adapt to than that of Olympus.

So the article about Olympus reads as an Olympus “feels good” and some postulations that may be true of Olympus are equally true for other brands. The most obvious is that Sony as an electronic goods manufaturer came from nowhere to be a brand on everyone’s lips as the FF ML success story of the moment. Even Panasonic that “microwave company” seems to get little regard from some Olympus users has been leading the new M4/3 camera body charge in the last few years and matching Olympus blow by blow for lens releases.

So Olympus is good but they have been the one dragging the M4/3 chain in recent years.

I look forward to the E-M1x - I might even buy one - I don’t dislike Olympus product but am only deflating that little happy-bubble that the linked article set up.

In financial terms Olympus is giving every indication of struggling and that cannot be dispelled by happy words from the coach - it will only be countered by more innovative product on the ground and that can be evaluated when it (finally) comes to fruition.

But in the meantime three cheers for Olympus M4/3 needs you .... :)
???

Well then, I guess...Good luck, Panny? 😆

Jan
 
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