Archived posting to the Leica Users Group, 1999/08/21

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Subject: [Leica] Death Spiral
From: Marc James Small <msmall@roanoke.infi.net>
Date: Sat, 21 Aug 1999 09:45:08 -0400

At 03:59 AM 8/21/1999 -0500, Robert Monaghan wrote:
>Nikon's profits are reportedly from its point and shoot sales, not Pro F5s!
>Rollei makes more from one submarine periscope than its entire medium 
>format lines by other estimates. The German's recently shut down their 
>35mm pentacon/praktica factories, figuring it was cheaper to send workers 
>home on welfare than go on selling cameras that cost $650 but sold for $165 

Three comments.

First, all camera companies have always made more from the bottom-end "P&S"
type cameras than from pro gear in a stable market.  Zeiss Ikon made far
more off the Contaflex SLR and Contessa lines than they ever did off their
higher-end gear and, in fact, the Contax RF and Contarex SLR systems forced
the company into effective bankruptcy.  Similarly, Leica's prime market
share has always been advanced amateurs, and their advertising (remember
when Leica still advertised?) has always been aimed at the middle and
upper-middle class weekend shooter.  

Second, Rollei nor its predecessor companies have never, to my fairly
certain knowledge even made a submarine periscope.  Zeiss does, though.
Zeiss, from the 1860's to the present, has ALWAYS made far more from the
sale of industrial, scientific, military, and medical gear than from camera
lenses.  It is a truism of the trade which also affects Nikon (who make
relatively little of this gear, and, hence, must rely more on photographic
optics) and Canon (who makes almost all of the photocopier and FAX machine
optics and who, as a result, can treat the photographic end of the concern
as a prestige leader whose profitability does little to affect the net
profit of the company.)

Third, I believe your information on the alleged ending of camera
production in Dresden by Pentacon is incorrect.  See the company's homepage
for details:

http://pentacon-dresden.de/indexeng.html

They seem to still be happily cranking out Pentacon Six bodies for the
Exakta MF system and Praktica BX20 cameras.  They are badge-engineering
Oriental P&S cameras as well but, on the Leica Users' Group, who are we to
comment on this practice, given the various Leica Mini P&S's which have
appeared over the past decade.

Marc

msmall@roanoke.infi.net  FAX:  +540/343-7315
Cha robh bas fir gun ghras fir!