[Leica] NY Photo Expo: A talk with Leica

[Akhil Lal <alal@bcc.cuny.edu>]

Hello Everyone,
                As I mentioned a couple of weeks ago, a group of
executives from Leica
U.S.A. and Leica Solms kindly consented to meet with list members at the
recent Photo Expo held here in New York City. This group included R.
Horn (President, Leica U.S.A.), N. Strauch (V.P. Marketing & Sales,
Solms) and R. Hagenauer (Communications & P.R., Solms).  In one-to-one
conversations I discussed a wide range of Leica related matters; for the
benefit of list members, these conversations are summarized below.
                First of all, let me say that I did not at all find them
to be aloof,
or out of touch with current market trends and fiscal realities. Nor
were they unaware of our wishes in regard to new products or added
features to existing products. It is clear that they are comfortable
with Leica's current market position as a high end niche manufacturer.
Within that market segment, their overriding concern is to return the
company to profitability. Their product range is broad, but the current
CEO is aware of the marque's history and has no desire to turn the Leica
company into a marketing organization for non - photographic goods.
		Secondly, they do realize that Leica is constrained by its relatively
small size and correspondingly small R & D budget. Resources must be
expended wisely on product lines which will have a good chance of
contributing to the bottom line. It is unwise to go head to head against
the large mass market Japanese companies in areas where they have a
significant market presence. Product lines must pay their own way -
those that are not doing well in the marketplace may well be
de-emphasized until Leica's fiscal position improves. Hence, they do
not, at this time, wish to commit funds to  develop an AF SLR system
that would have to compete against the Nikon and Canon AF SLR's. With
regard to AF SLR's there are also patent issues that add to the
development costs and lead time.
		They DO now receive all mail from the LUG in digest form (no, a "who
leica-users" to majordomo will not reveal this) but, given the pathetic
S/N ratio, whether anyone at Solms really reads it all is open to
question. In the past significant posts were forwarded to Solms by list
members.  They may now also be receiving mail from the LEL - Roger would
know.
		By product line, here's what I learned:

Enlargers
There is no chance of seeing a revised Focomat or any Focotars, V-Elmars
et al. In the last year of production, just before it was discontinued,
worldwide sales of the Focomat 35 were around 130 units. Interest in
darkroom work is dwindling and there are many companies making excellent
enlargers and optics for far less than Leica would need to charge.
Focomats were made in the Minox factory and restarting production would
be prohibitively expensive. I asked about the possibility of running off
small batches of enlargers and enlarging lenses in order to satisfy
residual demand, but was told this was not feasible.   

Projectors
The 2002 is, in fact, no longer being made. Leica had a 4 year (!)
inventory of this model when it was discontinued (in favour of the RT
series). Once current stocks are cleared out at the special price there
will be no more. If you want one this may well be your last chance. The
600 and 150 are still in the catalogue.

Projector sales are up slightly as rival European manufacturers are
leaving the market. On the other hand, fewer photographers are using
slide film. Leica expect sales to rise slowly due to the new models,
eventually to fall as digital imaging gains wider acceptance.  

The R - System
This is, for me at least, the saddest part of this report. Although I
grew up in a rangefinder household - Father was a Contax man, while
Grandfather owned a III f - and I own many rangefinders myself, the R's
have always been my primary system. Thus it pains me to report that the
R-system is not doing well in the marketplace. The biggest shock was the
news that the R-6.2 is outselling the R-8 ! Note that Leica do not
promote the R 6.2 very hard in their advertising. It is clear that the
buying public has voted with its money and does not see any merit in the
bulky R-8. I asked if the R-7 would be revived and was told that this
was not planned. I was told that the R-8 chassis was to have been the
basis of the next generation AF SLR system. As I've mentioned before,
the AF system will not now be developed. A Contax RX style electronic
focus confirmation feature was not under consideration either. No new
major lenses are planned. Without explicitly being told so, I got the
impression the R system is in for a period of benign neglect. I was
assured that there are no plans whatsoever to discontinue the R-system. 

Some Lugers had wondered about Leica R lenses being made in Canon, Nikon
or other mounts. I was told that this was not possible as Leica lenses
were in some ways production limited. If lenses were made in a non Leica
mounts the position would be even worse. There were also issues related
to lens mount patents that would need to be resolved.

Certain lenses were selling slowly. As an example, fewer than 500 of the
180 mm Summicrom R have been sold since its introduction.     


The M-System
Leica were actively involved in the Hexar project but, for undisclosed
reasons, decided not to pursue the matter further. They have evaluated
the Hexar and do not regard it as a serious competitor. They believe it
will only help sales of the M system.  A family of M's is promised for
the future - no further details were given. Leica are aware that M users
tend to be a conservative lot, so a completely restyled all electronic
AE body  with zoom finder may not be in the works (this would be my
dream M body). Leica believes that any new addition to the M line must
be a pukka Leica, so a plastic CLE type body, made in the Far East, is
also unlikely. I enquired about forthcoming new products for the M line,
but ran into a polite but solid stonewall. Fair enough, as far as I am
concerned. They are aware of the need for faster wideangles such as a 28
mm summicron M.

In the US market sales of the M system are up three-fold over the past
couple of years. It appears that Leica are quite pleased with the sales
of the M system and hope to build on its success.  


		Well, that's all for now. Hope you find this information useful. Many
other list members were present too. Perhaps they, too, would like to
summarize their discussions ?
		
				
Regards,
Akhil Lal
alal@bcc.cuny.edu