Originally posted by Kunzite 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