[Leica] what?

[jshul at comcast.net (Jim Shulman)]

As for the dismissal, it could well be a reflection of other internal issues
in the company (that we're not privy to assessing. I've seen that before
with other privately held companies.)  Good performance might not have been
good enough, based on sales projections or loan repayments or cash flow.
Thanks to the recent tightening of credit markets, a lot of manufacturers
and retailers in the midst of major turnaround projects are feeling a huge
pinch.  At least Leica can still react, unlike Lillian Vernon and Sharper
Image: two enormously famous US retailers which largely stayed the course in
a changing market-- right into the dumpster.*

My sixth sense, after attending the LSHA presentation last October (which
hinted of a VERY ambitious collection of exciting product launches) is that
things didn't work out quite as planned.  Usually that situation heralds the
departure of a senior executive, especially in a privately held company run
by venture capital. 

The other points 

1. Price hikes were tied to the drop in the dollar against the Euro.  After
seeing an item on this week's LUG FS post that I'd have loved (but now costs
me 60% more than it would have two years ago) I can understand the
frustration of new Leica equipment purchasers.  A niche manufacturer such as
Leica can't easily cut prices to match currency fluctuations--they haven't
the manufacturing flexibility or capital reserves.

The price hikes are counter-productive in the US, though--look at the idea
of introducing "affordable" lenses that a) suddenly have a $300 price
increase and b) get hung up in production delays.  I'll use myself as an
example: I recently purchased a sensational CV lens (and I believe their
most expensive) for less than half the price of the new Summarit "starter"
lenses. That's plainly absurd.

2. When has Leica/Leitz EVER had ANYTHING electronic right the first time?
In the past 50 years their history with electronics has been abysmal--from
the already-obsolete meter in the original Leicaflex to the infamous
electronics problems in the first R8s.  Buggy or downright obsolete
electronics in early production models is as much a company tradition as the
red dot!  Perhaps a new slogan: "The Red Dot of Courage: I bought a
First-Generation electronic Leica!"  As one famed Leica collector and
historian once mentioned to me, the company historically uses early
purchasers as their test lab, making corrections as they go along. 

Jim Shulman
Bryn Mawr, PA


*I also have similar thoughts about the Hilary campaign manager replacement,
but don't want to turn this thread into a LUG forum item. 


-----Original Message-----
From: lug-bounces+jshul=comcast.net@leica-users.org
[mailto:lug-bounces+jshul=comcast.net@leica-users.org] On Behalf Of Jeffery
Smith
Sent: Saturday, February 23, 2008 9:33 AM
To: Leica Users Group
Subject: Re: [Leica] what?

I think the company is in trouble. The enormous price hikes and the recent
upgrades for life on the heels of a very buggy M8 have all been signs of
their problems. This is probably going to be like Hilary Clinton firing her
campaign manager, i.e., a sacrificial lamb.
-- 
Jeffery L. Smith
New Orleans, LA