Archived posting to the Leica Users Group, 2014/04/08

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Subject: [Leica] Leica R system
From: red735i at verizon.net (Frank Filippone)
Date: Tue, 08 Apr 2014 05:25:35 -0700
References: <15074092.1396952072107.JavaMail.root@mswamui-backed.atl.sa.earthlink.net>

This discussion started off as a comment on discontinuing the R system in 
favor of the S.

My point was and remains that Leica made a decision that the R market was 
too big and competitive for them to play in, where Leica innovations and 
image quality at the projected selling price would make the market too small 
to them to presumably make a profit.   So they decided on the D-MF market.

>From a May 2013 interview by Forbes Magazine of Leica's Stephan Schulz, the 
>Head of Professional Photo at Leica Camera AG:
"There are no industry-wide figures, but we think the core medium format 
market is roughly 6000 units per year ? worldwide, for all brands. We are 
not yet the market leader (I estimate Phase One to have 40-45% market 
share), but we already have 20% share ? and this is only after 3 years after 
introduction."

Interpolating this data..... 6000 * 20% = 1200 cameras per year..... ( if 
you assume that Schulz is talking about Unit market share and not Dollar 
market share)

Have then had some degree of success?  The noted 20% market share says yes.  
The fact that they remain in that business says the company is sufficiently 
happy with the inroads that have been able to make and the profits or losses 
thereby.

Circling back to the original discussion, and based on data we now have on 
the S system, comparing it back to the R system, ....   Would Leica have 
sold 1200 R10's at prices that would have been 50-100% above the 
competition?  There are enough Leica nuts ( myself included) out there that 
the answer is most likely ....Yes...... After all, to own an M lens, we 
spend 10-20 times the price of mainstream lenses to own the Leica brand....

And with that, a dead horse.

Frank Filippone
Red735i at verizon.net




Replies: Reply from frank.dernie at btinternet.com (FRANK DERNIE) ([Leica] Leica R system)
Reply from hopsternew at gmail.com (Geoff Hopkinson) ([Leica] Leica R system)
Reply from mark at rabinergroup.com (Mark Rabiner) ([Leica] Leica R system)
In reply to: Message from wildlightphoto at earthlink.net (Doug Herr) ([Leica] Leica R system)