Correction: NOT WSJ but Yahoo Finance: Olympus one of 10 brands to disappear in 2014

Started May 26, 2013 | Discussions
Paco 316
Paco 316 Senior Member • Posts: 1,141
Re: WSJ: Olympus one of 10 brands to disappear in 2014

We've heard this BS before.

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rrr_hhh Veteran Member • Posts: 6,022
Re: WSJ: Olympus one of 10 brands to disappear in 2014
2

dpreviewreader wrote:

s_grins wrote:

Read this article again. For me it is clear that Olympus is going to stop paying dividends until it restors profitability. Also it is clear tha Olympus is exiting P&S market, but not DSLR .

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Looking for equilibrium...

The Olympus management says it will not pay dividends until profitability is restored but the article uses its criteria to predict which brands will disappear. I am not saying this will happen,  but the fact that such articles are being written indicates financial analysts do not expect Olympus to remain in the camera business much longer.

I think the guy who wrote this article isn't very well informed : he focalized on the P&S market and got impressed by the number. He doesn't seem to be aware of

a) the Olympus strategy plan which will cut in the P&S business,

b) the existence of mirrorless and the innovation potential it has (what is the use of such precision if they don't take innovation potential in account ?)

c) they focal used only on the US market, which isn't the whole world

d) they are ignoring the fact that the camera dvision is only a small division of the Olympus corporation, the medic instruments being the most important and the most important part is making profit

e) what about Panasonic then ? They have an even smalle market share, they are loosing big money in the TV department, they are not a long standing camera manufacturer like Olympus, etc..  And what about the Samsung camera division ?

I think that the Olympus camera division is in a difficult situation, but I think that Olympus will hold on it because :

They have a long tradition of manufacturing cameras,

They have just invested in a lot of innovation, producing little jewels for MFT and I'm sure that after all these efforts which are beginning to bear fruits, they don't want to let it go. But they will let the P&S go away because of the smartphones competition.

They are integrated in a much wider and profitable corporation and one which has connection with the camera business : microscopes and other medical gear needing optical components, so it isn't as if it was a totally isolated division/department of the corporation.

Of course the attitude of the new board of directors, with the new Sony majority and the strong presence of the bankers in the board, one could see some decisions difficult to swallow for the older Olympus management.

I think that what Thom Hogan writes over at Sansmirror  is much better informed than what the WSJ reporter has come out with.

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rrr_hhh

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RichRMA Senior Member • Posts: 4,073
Olympus should bring back DSLRs to satisfy the American market

Go out in the streets of North America and take a look.  How often do you see a car that isn't grey, white or black these days?  Americans are so conformist now it's like the 1950's.  So perhaps Olympus needs to bring DSLR's back?

The writer is right about the fact Olympus cannot continue to lose money.  They can't expect their medical division to pick-up the slack from the money-losing camera division.  What is interesting however is that with 7% of the market a camera company can't make any money.  In the 70's, you had five major brands (Canon, Nikon, Olympus, Minolta, Pentax) and several sub-brands and they seemed to be doing ok back then, even though some of them must have only had the kind of market share Olympus has now.

rrr_hhh Veteran Member • Posts: 6,022
Re: WSJ: Olympus one of 10 brands to disappear in 2014

Y1981 wrote:

IMO the worst thing could happen to Olympus is to be bought by Sony or something like that.

But Sony already has 51% of the Olympus shares. that is how Olympus solved its financial woes After the scandal of the last wo years.

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rrr_hhh

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Y1981
Y1981 Forum Member • Posts: 57
Re: WSJ: Olympus one of 10 brands to disappear in 2014

rrr_hhh wrote:

But Sony already has 51% of the Olympus shares. that is how Olympus solved its financial woes After the scandal of the last wo years.

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rrr_hhh

Didn't know that, then Oly will not disappear

OP dpreviewreader Regular Member • Posts: 475
Re: WSJ: Olympus one of 10 brands to disappear in 2014
1

rrr_hhh wrote:

Y1981 wrote:

IMO the worst thing could happen to Olympus is to be bought by Sony or something like that.

But Sony already has 51% of the Olympus shares. that is how Olympus solved its financial woes After the scandal of the last wo years.

Sony has 10% stake in Olympus, not 51%.

http://www.reuters.com/article/2012/09/25/us-sony-olympus-idUSBRE88O0AE20120925

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rrr_hhh

rrr_hhh Veteran Member • Posts: 6,022
Re: Olympus should bring back DSLRs to satisfy the American market

RichRMA wrote:

Go out in the streets of North America and take a look.  How often do you see a car that isn't grey, white or black these days?  Americans are so conformist now it's like the 1950's.  So perhaps Olympus needs to bring DSLR's back?

The writer is right about the fact Olympus cannot continue to lose money.  They can't expect their medical division to pick-up the slack from the money-losing camera division.

Unless the R&D made by the camera division indirectly serves the medical imaging division, which is well possible. Note that it is not new at all that the camera division is loosing money.

What is interesting however is that with 7% of the market a camera company can't make any money.  In the 70's, you had five major brands (Canon, Nikon, Olympus, Minolta, Pentax) and several sub-brands and they seemed to be doing ok back then, even though some of them must have only had the kind of market share Olympus has now.

I think that the competition is much harsher. Plus the digital thing, like all high end technologies imples big investments that only a few big companies can afford. So this lead to fusions/acquisitions etc..

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rrr_hhh

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rrr_hhh Veteran Member • Posts: 6,022
Re: WSJ: Olympus one of 10 brands to disappear in 2014

dpreviewreader wrote:

rrr_hhh wrote:

Y1981 wrote:

IMO the worst thing could happen to Olympus is to be bought by Sony or something like that.

But Sony already has 51% of the Olympus shares. that is how Olympus solved its financial woes After the scandal of the last wo years.

Sony has 10% stake in Olympus, not 51%.

http://www.reuters.com/article/2012/09/25/us-sony-olympus-idUSBRE88O0AE20120925

I think that you are right after all, it must be the new members who entered the board (aka bankers etc.) who have 51% not Sony alone, but I think that Sony as the buggest shareholder has got something like the presidency of the board ?

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rrr_hhh

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kgwhite
kgwhite Veteran Member • Posts: 5,035
Re: WSJ: Olympus one of 10 brands to disappear in 2014

If Olympus goes it goes. Not the end of the world or necessarily the end of the technology. Most of the camera companies that ever existed are now out of business. As far as I know you can still buy a camera to make images. Except for a very few Professional level products, all digital cameras are consumer goods. They are intended to become obsolete and require replacement.

If you are a photographer, use'em up and enjoy what they can do. Camera bodies and lenses are not investments they are tools.

If you are a gear fetishist then buy something new and put it under glass. You will still be able to admire it for many years to come.

jacquelyn Regular Member • Posts: 138
Re: WSJ: Olympus one of 10 brands to disappear in 2014

Near the end of this article he indicates this is about p&s cameras, which is not new news. That part of the business has been in trouble for several years with all makers. entity  level p&s have been hard hit by the smartphone.

Also, he mentions that they will be focusing on SLR's.

AndyGM Contributing Member • Posts: 698
Re: WSJ: Olympus one of 10 brands to disappear in 2014
2

This article is about what brands are going to withdraw from the US market, not what companies are going bust.

Plenty of companies keep going without being in the US.

The American press can be fairly blinkered, and think their country is the centre of the universe. It isn't.

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texinwien Veteran Member • Posts: 3,326
Wrong - Nothing to do with the WSJ here

dpreviewreader wrote:

"Except for market leaders like Canon, Sony and Nikon, no one wants to be in the digital camera business anymore."

No. 6 on the list.

http://finance.yahoo.com/news/ten-brands-that-will-disappear-in-2014-181419498.html?page=2

This has nothing to do with WSJ / The Wall Street Journal. The article is from "24/7 Wall Street", an outfit I'd never heard of before today.

Judging by the outfit's website, it's very likely a one-man show cranking out puff-piece BS blog articles on a self-hosted Wordpress site.

The Wall Street Journal it most certainly is not. Have a look at the headlines of the site's other articles. Not very confidence-inspiring.

tex

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OP dpreviewreader Regular Member • Posts: 475
Re: Wrong - Nothing to do with the WSJ here

texinwien wrote:

dpreviewreader wrote:

"Except for market leaders like Canon, Sony and Nikon, no one wants to be in the digital camera business anymore."

No. 6 on the list.

http://finance.yahoo.com/news/ten-brands-that-will-disappear-in-2014-181419498.html?page=2

This has nothing to do with WSJ / The Wall Street Journal. The article is from "24/7 Wall Street", an outfit I'd never heard of before today.

Yes, it is not from WSJ as I mentioned in one of my previous posts. When I realized the error I could not edit my post.

Judging by the outfit's website, it's very likely a one-man show cranking out puff-piece BS blog articles on a self-hosted Wordpress site.

The Wall Street Journal it most certainly is not. Have a look at the headlines of the site's other articles. Not very confidence-inspiring.

tex

dmanthree Veteran Member • Posts: 6,527
Hope not.

dpreviewreader wrote:

"Except for market leaders like Canon, Sony and Nikon, no one wants to be in the digital camera business anymore."

No. 6 on the list.

http://finance.yahoo.com/news/ten-brands-that-will-disappear-in-2014-181419498.html?page=2

I don't own a single Oly product, but I do hope they survive. Great cameras, even though upper management almost sabotaged the company.

But that new E-P5 does look nice...

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KenBalbari Regular Member • Posts: 276
Re: WSJ: Olympus one of 10 brands to disappear in 2014

Lets be clear about what the article is predicting.  He's saying that Olympus digital cameras will not be sold in the US by the end of 2014.   He is not forecasting the demise of their medical imaging business.  He is not limiting it to point and shoot. The claim is "The Olympus digital camera also will disappear from store shelves by the end of 2014."

It's not an outrageous claim.  Olympus cameras are already hard to find in stores in the US. I think the author hasn't really accounted for the success of mirrorless cameras, though.  He seems to even be unaware of the segment, or not to understand the difference from SLRs.  The claim that Olympus will "focus on increasing sales of SLR cameras" strikes me as ill-informed.

I'm not sure that the author understands that Olympus could exit both the compact point and shoot and SLR businesses while restoring their digital camera brand to profitability.

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MichaelKJ Veteran Member • Posts: 3,466
Re: Wrong - Nothing to do with the WSJ here

dpreviewreader wrote:

texinwien wrote:

dpreviewreader wrote:

"Except for market leaders like Canon, Sony and Nikon, no one wants to be in the digital camera business anymore."

No. 6 on the list.

http://finance.yahoo.com/news/ten-brands-that-will-disappear-in-2014-181419498.html?page=2

This has nothing to do with WSJ / The Wall Street Journal. The article is from "24/7 Wall Street", an outfit I'd never heard of before today.

Yes, it is not from WSJ as I mentioned in one of my previous posts. When I realized the error I could not edit my post.

Judging by the outfit's website, it's very likely a one-man show cranking out puff-piece BS blog articles on a self-hosted Wordpress site.

The Wall Street Journal it most certainly is not. Have a look at the headlines of the site's other articles. Not very confidence-inspiring.

tex

When something like this happens you can PM one of the moderators and ask them to edit the title of your thread.

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Corkcampbell
Corkcampbell Forum Pro • Posts: 17,139
Don't think that this was the "American press."

Just some press-wannabe, a website rehashing opinions originating elsewhere. Those comments about Olympus have been seen on various industry-related sites, including this one, and also repeat what Oly themselves have been saying and writing recently. I think I remember that the (real) WSJ reported similar information on the camera division when the latest financials came out - I know, because I have a subscription to the paper and Olympus is one of my flagged companies to watch.

The mere fact that the link in the original link was to Yahoo should have ended the thread right there.

As for the American press being focussed on America, well, all newspapers can be guilty of that; it's how they get their local advertisers, etc. However, I work in China and travel to both Koreas and the UK, and I really haven't found better sources of information (political, historical, and economic) on this part of the world than the WSJ and the New York Times. The weekend WSJ always has the best reviews of the latest books on international topics. The British papers used to try to keep up, but they don't have the support/infrastructure here.The Journal is especially good - they seem to know what's going on in the Chinese government before anyone else, and have sections just devoted to each country ("Korea Real Time," for example) and both that paper and the NYT were in the forefront in reporting on the Bo Xilai scandal, the latest North Korea hiccup, etc., as well as how Apple handles Honhai (Foxcomm), Chinese auto industry, etc. The 12 page article on the finances of Wen Jiabao last December (in English and Chinese versions) got the NYT blocked in China, which it still is. Anyone wanting to read it must have a VPN, which many have for other reasons as well.

I dwelled above on Asia coverage, because I can judge it better, but I think that they make efforts to do equally well in all regions.

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Corkcampbell
Corkcampbell Forum Pro • Posts: 17,139
It wasn't the WSJ and it probably wasn't a reporter. Look again. (nt)

no text

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Corkcampbell
Corkcampbell Forum Pro • Posts: 17,139
No way does Sony have 51% share of Olympus. That would have been

headlines in the real WSJ, every other business paper, and on this website. More like less than 10%, but it was somewhat shared with a new venture (or perhaps entity) that involved the two companies and was focused on medical imaging. I believe that 51% was mentioned in that regard a few months ago, but that venture has been delayed or postponed. Naturally, Sony wants to move in that direction, considering the stagnation of the consumer camera sector, as well as to enlarge the scope of its sensor operations to make up for its other electronics losses, such as TVs.

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Binone Regular Member • Posts: 495
He's ignoring the growth of CSC cameras.
1

Olympus is a leader in a relatively new photography market segment: Compact System Cameras.  The leaders include Olympus & Panasonic with m4/3, and Sony's NEX series.  While it's certainly true that the P&S market is saturated and declining, I believe that the CSC market is increasing rapidly as more serious photographers realize that they don't need to carry 20 lbs of gear to produce quality images.  Olympus is in a good place as m4/3 becomes more widely adapted by serious photographers.  It's only real challenge is Sony's NEX and Fuji, but there's very little available for both of those to make a competitive system.

Olympus will most probably survive long past 2014.  What's a possibility is that Sony might continue to invest more in Olympus and, in the future, they could acquire the company.  That just might mean that Sony would be in the m4/3 business.

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