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

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Subject: [Leica] Leica R system
From: mark at rabinergroup.com (Mark Rabiner)
Date: Tue, 08 Apr 2014 19:35:20 -0400

Thing is the S system in its identical form factor to the Canon and Nikon
DSLR'S does directly play in that DSLR market.  We don't have to know the
senor is physically bigger.  There are plenty of photogs now are fine with
not high iso' s and are willing to wait for a body down the line which comes
out with that option if they ever need it.

The S system supplies a premium option for DSLR users just as the R system
did in the film days. Only there is no reason for the S system to be
constrained by a certain format size.

Other camera companies come out with 2x crop and 1.5 crop DSLR's which
purport to compete directly with 1x format. Leica just went the other
direction.  Call it a  .6x crop. - just a guess though.

Compatibility with R glass just didn't make for a big enough reason to stick
with the 35mm format. A brilliant move on the part of Leica. And no you cant
have one for four grand.


On 4/8/14 8:25 AM, "Frank Filippone" <red735i at verizon.net> wrote:

> 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



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-- 
Mark William Rabiner
Photographer
http://gallery.leica-users.org/v/lugalrabs/




Replies: Reply from john at mcmaster.co.nz (John McMaster) ([Leica] Leica R system)
In reply to: Message from red735i at verizon.net (Frank Filippone) ([Leica] Leica R system)