Archived posting to the Leica Users Group, 1999/11/13

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Subject: re: [Leica] R8 sales
From: Larry Kopitnik <kopitnil@marketingcomm.com>
Date: Sat, 13 Nov 1999 22:37:32 -0600

>>>>>>>>>>
Stephen wrote in part:
"If the R8 and its lenses were AF, its sales would probably much much much
higher,  Leica would probably not have the financial problems it has, and you
wouldn't have to defend it because there would be few detractors."

Do you have any figures or facts, or arguments or reasoning to
support this claim?
<snip>
Can you give me financial figures and facts that prove that the
current financial problems are due to the current level of  R8 sales.
<<<<<<<<<<<

I'm not Stephen, who can speak and has spoken for himself, but I'll offer
thoughts and facts nonetheless.

Examine Leica's current financial report. Overall sales are up an
insignificant 0.1%. Yet M sales are up considerably. Binocular sales are
up. Projector sales are up. Minox sales are up.

But compact camera sales are down and R sales are down. Those two product
categories are clearly contributing to Leica's lack of financial growth.

For compact cameras, the report offers an explanation: "....New Leica
compact camera products have been introduced in the market later than in
the prior year...." The report then adds that two new products in this
category "will generate additional sales in the current 3rd quarter."

But when discussing the falling R sales, the report states that "the
Company was aware of this market situation and has taken it into account in
setting up the budget." Further, when explaining declining sales in
Germany, the financial report places the blame, in part, on "the large
contribution of the declining SLR camera business to the German market."

I read those quotes as Leica laying a large portion of the blame for their
lackluster financial performance squarely on the shoulders of the R system.
The current R system is failing commercially, even by Leica's meager sales
standards, and Leica knows it. And Leica is budgeting with the expectation
that falling R sales will continue.

>>>>>>>>>>
Another quote by Stephen is:
"Now 15 years later, Leica still hasn't figured out how to do it, yet all of
the major Japanese manufacturers have.

Are you really sure that Leica does not have figured out how to do
it?  How do you know? Might there be other reasons, not known by you
for Leica's current position on AF?
<<<<<<<<<<

If Leica prefers to not disclose their "current position on AF," they leave
the door open to speculation. And such speculation, in a group like this,
is indeed fair game when supported by reasonable assumptions.

My speculation: Would the addition of AF improve R system sales? That and a
motor seem to be the only major features the R8 lacks, so I would agree
with Stephen's reasonable assumptions at the top of this post.

Larry