Originally posted by monochrome This has nothing to do with anything.
Originally posted by monochrome Fortune Global 500:
- Samsung; 26th largest company on earth, R $178 BBN, P $4.7 BBN
- Hitachi; 54th largest company on earth, R $108 BBN, P $2.1 BBN
- Panasonic; 83rd largest company on earth, R $87 BBN, P <$9.1 BBN>
- Sony; 94th largest company on earth, $R 82 BBN, P $0.5 BBN
- Misubishi; 118th largest company on earth, R $72BBN, P $4.8 BBN (owns 40% of Nikon shares)
- Toshiba; 126th largest company on earth, R $70BBN, P $0.9 BBN
- Fujitsu; 186th largest company on earth, R $53 BBN, P $<$0.9>
- Canon; 236th largest company on earth, R $44 BBN, P $2.8 BBN
- Fujifilm; 437th largest company on earth, R $27 BBN, P $0.7 BBN
- Ricoh; 500th largest company on earth, R $24 BBN, P $0.4 BBN
Sony, Nikon and Canon should be quaking in their boots.
Ricoh. 500th. Earned about as much profit as Sony - but - PentaxIsDoomed™
The camera divisions of these companies are pretty small. Samsung, for instance, is enormous--in fact, if it were a country, it would have something like the 35th largest GDP. They make everything; in Korea, and I kid you not because I have personally seen this, it's possible to leave your building made by Samsung construction in an elevator made by Samsung to get into your Samsung car to drive to work at Samsung.
But Samsung, as large as it is, will not throw the enormous weight of the entire company behind their camera division. Nor will any of these companies, except for Canon and Nikon, because that is pretty much what they do. Sure, they both make binoculars and scopes and other random optical devices and Canon has a large printer business, but their bread and butter is cameras.
Sony has shown they'll spend fabulous money on marketshare--look at the PS3. But gaming is not a saturated marketshare. When the original PS launched, there was Sega and Nintendo (plus a few really small players), the latter of whom shredded a deal with Sony that angered them and caused them to enter the gaming business. Still, that was over 20 years ago, and we have...Nintendo, Sony, and Microsoft only (Sega's replacement). It makes sense for Sony to fight hard with only 2 other competitors! But in cameras, they have four main competitors, all of whom have well established customers. Unlike the gaming buisiness, where marketshare resets every 7-8 years with the launch of a new generation of consoles, people keep their camera lenses for a long time. It's not worth trying to buy out this market. It's too hard and too expensive.
I think that's why we saw newcomers like Panasonic focus on mirrorless systems. It was a chance to capture new customers with a new product. Too bad for them consumers largely didn't bite.
In short, the size of the company matters little. Megaconglomorates aren't going to burn money if they don't see the potential for big gains.