[Lord Lucan]

Is everyone unaware that when you order an Apple computer, it's put together then next day in China, built to your specs, you usually have a choice of memory, processors, SSD size and an number of other options.

It is not just Apple, there are "IBM compatible" PC makers who offer that too - easy because such computers are made up from interchangeable components. In fact end users, me for example, can make them up themselves - would Apple sell the parts to allow that?

Of course, some film camera systems were customisable in that they were modular with some or all of : interchangeable viewfinders, film backs, motor drives, grips, and of course lenses. I don't think that is what Pentax has in mind however.

[BROO]

Not when they first came out they didn't. I'm talking about the Teslas that were based on the Lotus Elise. But what Tesla did was constantly market and tease the products to drive interest in those who didn't even know about EVs let alone Tesla. At that time, GM had their own EV. The Chevy EV1, then later the Volt came out along with Ford producing an EV. Two mass production automotive giants against a relatively unknown player. GM and Ford didn't market the vehicles but Tesla kept at it. GM and Ford sold the vehicles through dealerships but it didn't matter, Tesla convinced people that they were different. So different that people stopped caring that you couldn't test drive one before buying it. Tesla became a status symbol. And THAT'S what the majority of Tesla owners want. The status of having a Tesla. (I know quite a number of people who have them, from the Model 3 to the X and if it ever comes out, the Cyber Truck).
Every one of them, when I ask why they bought one it's the same answer "It's different, it's cool, or, it's a Tesla".
The marketing worked like a charm and the business/sales model worked just as well to go with it.
If done right, this change with Pentax could be the best thing they've done in eons.

I think your Tesla analogy is completely wrong.
Tesla is the new technology supplanting the old. Just like mirrorless and DSLR.
Tesla is like Sony.
Pentax is like Morgan.

[eddaytona]

This is Akahane’s point: there is no money to be made in the mass production of DSLRs. They are yesterday’s technology and, in the same way that we’ve seen integrated camera sales all but erased, the same fate awaits the DSLR

From Petapixel.com

[yucatanPentax]

Amidst all the doom and gloom originally inspired by the first translation and then somewhat calmed by the subsequent clarification by Pentax/Ricoh, there's this tidbit from Japan in mid-2021: Pentax is Japan's favorite camera maker.

Although not reflected in sales, Pentax apparently occupies a prominent place in the Japanese populace's mind. See the survey by Japanese media company ITmedia here: ??????????????????????????????2021????????????????? | ??????? (Chrome does a half-way decent job of translating)

And a discussion of the results here: ????????????????????TOP10???1???PENTAX?RICOH??????2021?????????1/3? | ???????

PetaPixel covered this here: https://petapixel.com/2021/05/17/japans-favorite-camera-brand-isnt-canon-nik...urvey-reveals/

So perhaps a focus on Japanese customer perspectives and impressions of Pentax has a payoff that isn't being seen outside Japan? Maybe Ricoh/Pentax has a better handle on what they are doing that what others may assume? "Pentax is DOOMED" is pretty old. I've been hearing it for 20 years now.

Attached Images

 

[Kobie]

I think your Tesla analogy is completely wrong.
Tesla is the new technology supplanting the old. Just like mirrorless and DSLR.
Tesla is like Sony.
Pentax is like Morgan.

I'm not talking about technology. Not once did I compare a combustion engine vehicle to an EV or a Mirrorless Camera to a DSLR. It's about the business strategy and how it has been successful in other sectors. Not sure where you got comparing Mirrorless and DSLR from, Or anything Technology related with what I said.
I was only explaining the fact that this has worked before and how/why it worked. Marketing the heck out of it to create enough buzz to force interest. Doesn't matter what the product is.

[RGlasel]

I think this is a positive announcement. For one thing, I'm pretty sure Pentax and GR products are already being manufactured in a "workshop" process. Forget about an assembly line where a worker installs a screw and then the product goes to the next worker, heck even automobiles aren't being manufactured that way anymore. By announcing that Ricoh Imaging will go forward using this process is a pretty strong indication that there isn't a huge cost of capital to be paid out of new sales. Which is a pretty strong indication that Ricoh Company doesn't need to dump the standalone camera business on corporate vultures, so there is no reason to expect that manufacturing of Pentax cameras and lenses will stop in the foreseeable future.

The only economies of scale come from tooling and product development. There is a fixed cost to build moulds for plastic parts and metal shells (assuming the shells are cast, not machined), so reduced manufacturing output means the per unit cost for these camera components will increase if new designs are used; otherwise it will have no impact on manufacturing cost. The electronics are off the shelf components; the customization comes in the programming and the assembly of PCBs (printed circuit boards), both of which the parent company has plenty of expertise in. High performance optical components are already produced in small batches under stringent controls; the price of new high end lenses already reflects this.

What is being taken out of the cost of manufacturing cameras and interchangeable lenses is the inventory demands (of both components and finished products) to support a mass market distribution network. Not to mention the cost of trade channel discounts. There is a still a role for physical points of sale, but not like we are used to. Camera and lens buyers will still want to touch new products before making a decision, but expect to be handed a demo unit to hold and if you decide to buy it, the seller will order your copy from a distributor (which in North America at least, is part of Ricoh Imaging itself) and it will be sent to you directly.


Expect the pricing of Pentax and GR products to remain where it is right now; not the most expensive or the least expensive, but offering a better bundle of features than its competitors at the same price point (and not at every price point either).

[Lowell Goudge]

snip…..

They're not saying they're scaling down the production!. There's not a word about that in the press release.
They're altering the production methods, from a mass market type (suitable to building batches of same product) to a "workshop" type (suitable to customizations).
They might even run the two productions methods in parallel.

For me, it looks like they're going for customizations in order to increase sales.

There is a news release on another forum that neither production or distribution is changing, this is a Japan only new business model.

[Kobie]

Well, in other news. Ricoh has corrected the statement.
Correction from Ricoh US: "Ricoh will continue mass production and sales but will be adding more direct-to-consumer approaches to its distribution in Japan" - Pentax Rumors

[Ronald Oakes]

What is ABF?
What camera models were there?

Somehow I didn't remember the term ABF, or is lack of sleep, but I can understand your situation completely, I own K-50 that failed in warranty period, got fixed and then failed again at 30000 shutter count. Therefore I am looking at KP and K3III...

KP is a fantastic camera for me. That's why I have 2 !
No love here on the K3III....lack of any type of articulating screen is a complete No-Go for this younger senior !

[TheLastMan]

I
They're not saying they're scaling down the production!. There's not a word about that in the press release.
They're altering the production methods, from a mass market type (suitable to building batches of same product) to a "workshop" type (suitable to customizations).
They might even run the two productions methods in parallel.

Well PetaPixel seem to agree with me in their article. Selected quotes:

"In 2020, BCN reckoned Pentax had about 3% of the DSLR market in Japan which may equate to about 100,000 units globally (compared to possibly around 1.2 million in 2012)."
If those figures are even close to correct, then it is inevitable that sales will fall further into niche territory, which will require build to order and batch production. "Mass production" only works if you are selling masses of units.

In terms of digital camera sales as a whole:
" the 2011 high in the industry when the number of units shipped peaked at 120 million before imploding back to a new low in 2021 of 8.3 million."
...and that is not just DSLRs, that includes mirrorless, bridge and point-and-shoot cameras as well. That is a 93% drop in digital camera sales across the industry!!
Interestingly no sub-sector of the market increased in the numbers of units sold. MILC sale numbers are no higher in 2021 than they were in 2012. However, the value of sales has risen x3, meaning that mirrorless has moved from "cheap and beginner" to "expensive and enthusiast", and is on the verge of moving to "very expensive and professional" as well.

Their conclusion (and I agree) is that this is probably a trial run in Japan towards a workshop based batch production model globally. It is difficult to produce as many as 100,000 cameras a year with a workshop model but also, with a product as sophisticated as a DSLR, it is difficult to make mass production profitable producing so few cameras. If sales continue to fall then it is inevitable that mass production will be pointless.

I don't see any conclusion from this announcement, and from the crash in camera sales generally, other than that Pentax will be scaling down production - they just want to do it in an orderly way, planning for an inevitable future and making sure they can continue making cameras and stay profitable.

"Income from the sales of GR and Pentax models is falling off a cliff, so the key question is whether it can bolster those sales in order to build a profit-neutral business. Is the shift to “workshop-like” manufacturing a sound business solution that could eventually be implemented to save Pentax as a brand, or does this mark beginning of the end?"

I know that the demise of Pentax has been foretold many times in the past, but with camera sales crashing so disastrously it will become increasingly difficult to keep this great little business viable. I am so glad they managed to get the K-3 III out the door. It is a truly innovative camera and is a total joy to use. I suspect, however, that it is the last time we will see such an entirely new product from Pentax

[c.a.m]

I'm having a difficult time wrapping my mind around the concept of this 'workshop' production model. I don't have any frame of reference other than my career that involved R&D laboratory workshops (one-off custom builds of complex electronic hardware) or my own basement workshop! And my experience in ordering semi-custom systems has been limited to Dell computers.

Wonder if anyone could paint a picture as to what Ricoh Imaging's 'workshop' approach might entail? e.g., One person building a camera? Small teams working on small production lots? Larger teams churning out 100's of units? What sort of timeframe would be required to produce a batch?

Thanks.

- Craig

[yucatanPentax]

I know that the demise of Pentax has been foretold many times in the past, but with camera sales crashing so disastrously it will become increasingly difficult to keep this great little business viable. I am so glad they managed to get the K-3 III out the door. It is a truly innovative camera and is a total joy to use. I suspect, however, that it is the last time we will see such an entirely new product from Pentax

It seems Pentax has long since stepped back from mass production and has been doing a small-batch style production for a while, doesn't it?

At least in my reasoning, it is more logical that Pentax will be successful in stepping back from mass production to small-batch production than the reverse. In other words, I'd be more likely to believe "Pentax is DOOMED!" if they'd made no changes at all.

As has been revealed, there's a bit of semantics involved here, in a (possibly innocuous) PR piece intended for Japan only. The semantics being that Pentax hasn't been doing mass production assembly line quantities for some time. Therefore, they're just putting a few words around what is already reality, while trying to fluff up perceptions about "customer engagement."

People have grabbed onto the announcement as more of a portent than it is, perhaps?

[bladerunner6]

Well, in other news. Ricoh has corrected the statement.
Correction from Ricoh US: "Ricoh will continue mass production and sales but will be adding more direct-to-consumer approaches to its distribution in Japan" - Pentax Rumors

Thanks for presenting this. It is nice to see something concrete.

[NZ_Ross]

I know that the demise of Pentax has been foretold many times in the past, but with camera sales crashing so disastrously it will become increasingly difficult to keep this great little business viable. I am so glad they managed to get the K-3 III out the door. It is a truly innovative camera and is a total joy to use. I suspect, however, that it is the last time we will see such an entirely new product from Pentax

If you look carefully at the statements made by Pentax around the K-3 III launch then you will note they have put a lot of effort into upgrading the pentaprism, operating system, autofocus system and use of the newer designed BSI sensor. They noted that these were once in a decade level changes. Having made that investment, it would seem illogical not to recover that across a wider DSLR range and longer time period.

Based on that observation I would expect Pentax will release a K-70 and K-1 upgrade with the newer systems and hardware. Most of the hard work to achieve this is already done.

[normhead]

In fact end users, me for example, can make them up themselves - would Apple sell the parts to allow that?

You can buy most Apple components with the exception of the motherboard because they use the same components everyone else does. Not why I'm sure that's important. Apple inspires a lot of "some obscure PC company does that too" But I'll bite, which companies will sell you whole computer to build yourself, from components they themselves manufacture and sell retail undercutting their own manufacturing facilities? Name one.