Re: [Leica] NY Photo Expo: A talk with Leica

["Francesco Sanfilippo" <fls@san.rr.com>]

All in all, very interesting stuff.  I am glad I decided to settle on M
rather than R system now....at least it had development in the works.
I guess we'll NEVER see that R8 motor winder.

BTW, forgive my ignorance, but what is a pukka Leica?

Francesco Sanfilippo,
Internet Developer,
NT/SQL Administrator,
Leica M6 Photographer,
http://www.photorealm.com/
http://www.glossymedia.com/
San Diego, CA., USA



- ----- Original Message ----- 
From: Akhil Lal <alal@bcc.cuny.edu>
To: <leica-users@mejac.palo-alto.ca.us>; l <leica@topica.com>
Sent: Sunday, November 14, 1999 10:29 PM
Subject: [Leica] NY Photo Expo: A talk with Leica


> 
> 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
> 
>