Archived posting to the Leica Users Group, 2005/08/27

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Subject: [Leica] Leica branded lenses
From: nathan.wajsman at planet.nl (Nathan Wajsman)
Date: Sat Aug 27 22:24:34 2005
References: <BF356D4E.1AA10%mark@rabinergroup.com>

Mark Rabiner wrote:

> The ones who know film is a dinosaur have long ago traded in their boring
> film consuming M's and R's for Lexar munching N's and C's.
> IF we are listening to the market speaking we'd not be shooting Leica which
> has had a solid fraction of 1% going for it for decades upon decades now.
> Leica is not a system that market conscious people use.

I was not referring to the photographers, I was talking about Leica. It 
is Leica who has to listen to the market. Yes, it is a niche company, 
but even niche companies can only survive if they make products that the 
particular niche they focus on wants to buy.

> If we compare the kind of numbers Nikon and Canon sells in than the R bodes
> and lenses and M bodies and lenses are a failure. I don't think Leica
> thought it was going to outsell then Nikon F5 when it came out with the
> Leica R8.

The M line is a success because it has been profitable over the years. 
The R line is a failure commercially because it has lost Leica a lot of 
money. It has nothing to do with production volumes. I am sure Leica did 
not expect the R8 to outsell the F5; but surely they did expect to sell 
enough R8s at high enough prices to have a reasonable margin on each 
unit and to recover the investment in product development.

> It's that nietzsche market thing again we love and thrive on.

Porsche is a niche company. It will never have volumes approaching even 
BMW, let alone Ford or Toyota or GM. Which is fine because Porsche is 
profitable. Leica is not. I very much doubt that the existing 
shareholders will want to throw good money after bad if the recently 
agreed capital injection does not buy Leica enough time to figure out a 
workable business strategy.

"We" may love and thrive on Leica's niche products, but there is not 
enough of "us" to sustain the company. The market is not good or evil, 
it is what it is--in a capitalist economy a company must eventually make 
a profit if it is to exist. It is as simple as that.

Nathan



-- 
Nathan Wajsman
Almere, The Netherlands

General photography: http://www.nathanfoto.com
Seville photography: http://www.fotosevilla.com
Stock photography: http://www.alamy.com/search-results.asp?qt=wajsman
http://myloupe.com/home/found_photographer.php?photographer=507
Prints for sale: http://www.photodeluge.com



In reply to: Message from mark at rabinergroup.com (Mark Rabiner) ([Leica] Leica branded lenses)