Signs of (Olympus) Life

Started 2 months ago | Discussions thread
Raist3d Forum Pro • Posts: 42,252
Re: Pulling out of N-America?

Danielvr wrote:

Pulling out of N-America wouldn't make sense. The only things that Oly does there is sell and support product. That brings in lots of revenue against very little cost. The high costs of development, production and corporate overhead all lie elsewhere.

Well that all depends on the marketshare and the ROI with that marketshare.

North America is still the second largest camera market after Europe. And again, most of the costs lie elsewhere when all that you have to do is sell and service those cameras - it's like harvesting without ever having to sow.

The question isn't whether it's the second largest camera market but what marketshare Olympus has here, and whether they have the cash at the moment to pursue it. And whatever JIP wants to do.

My back-of-an-envelope estimate is that you'd have to sell 10,000 cameras to recoup the costs of running a N-American sales operation. With some 2 million system cameras having been sold in N-America in 2019, that would equal a tiny .5% market share. Sell one more lens cap and you're turning a profit.

Note also that without those N-A sales, Oly would have to significantly lower its production, causing the per-unit costs of their cameras to increase a lot, making them less competitive in the remaining markets.

So, if Oly continues to develop and produce cameras, there's no way that they'll give up on the US and Canadian markets.

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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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