[Rush2112]

1. Pentax still have too many unsold cameras and lenses sitting around because they lost momentum (due to all the uncertainty caused by our protracted takeover negotiations). We'll flog em off cheap to get rid of them before we ship any new models (expect discounts on old stuff but not new stuff).

2. We'll scale back production rates of new models to meet market projections (so we dont end up in the same position).

3. We'll centralise production in 2 facilities in Philippines and Vietnam and shut down everything else in Japan and China except the Head Office and R&D (we'll also move some Hoya production there as well). Everything we dont make in these facilities will be outsourced.

4. We'll stop supplying markets that cannot support the volume to justify the cost of distribution and support given the new currency situation (Guess that wont include the EU, NA, Japan because they account for 99% of the volume and are distibuted centrally, but may include just about everyone else. They have never done that well in China and Samsung own Korea so the other big Far East markets are non available to them, Russia is a small market still with a nosediving currency and South America is far too expensive to export to).

5. We will cut reps, dealers and distributors who sit around on their idle *sses and dont shift stock and in the meantime we will ramp up internet sales.

6. We will shelve development of any technology that has no immediate future (645, FF).


Pretty much what I would do in the circumstances

This is what i'd do too. And I see all this as a postive reaction to the market. Why keep beating your head against a wall, go around it and find a new way into the market. Looks good to me man. Obviously they want to succeed or they wouldn't be doing all these changes, nor would have Hoya bought them.

Ya'll worry too much

C

[*isteve]

I can read an nauseum what you said but I still think Pentax just like Panasonic for example could sale 3% market share of uninspiring cameras late into 2009 or 10% m.s. of very good ones. Exactly like Panasonic increased many times it's market share from L10 to G1. IMO there is no "market prediction" only action sooner or regret latter.

Radu

No you did NOT read what I said - why would I make more cameras than market projections say I can sell? Thats all I said. Please tell me why I would make more cameras than I could sell?

[Bophoto]

...........
I would also add to this the S(amsung) factor. We don't know their plans and the nature of relation taht they are with Hoya atm. But, let's not forget that Pentax has a 3 model range and Samsung only the GX20 and older models made with Sony sensors and I imagine they are not very happy about that.
Radu

Did anybody now way Samsung did´t sold K100D/200D, was it to many unsold GX-S and GX-L?
Are Samsung going to sale new K300D if it´s a Samsung sensor in it?
Or, are Samsung skip the K-series and came out with their own micro-APS this year?

[poco]

why would I make more cameras than market projections say I can sell? Thats all I said. Please tell me why I would make more cameras than I could sell?

You'll need few for marketing demos and promotions, and a few more for direct replacements for service issues. Covering the error in the projection is probably a good idea as well, if each camera requires factory retooling.

There may also be a need to buy a component, like a sensor, at a certain level to insure availability or price point. If there is enough money spent to make it more expensive to not produce a product than produce it, i.e. taxes on inventory before depreciation can take effect, you may want to go ahead and produce the product for secondary sale. This could be something like a bundling of another product to make a profit. Last year's camera with lens, flash, or grip. Computer sales did this for years to salvage sales for older components, so I don't see why it wouldn't work for another technology.

[philbaum]

This is what i'd do too. And I see all this as a postive reaction to the market. Why keep beating your head against a wall, go around it and find a new way into the market. Looks good to me man. Obviously they want to succeed or they wouldn't be doing all these changes, nor would have Hoya bought them.

Ya'll worry too much

C

Well said! This sounds to me like just normal manufacturer speak and i think we've seen in the USA some of these actions already, i.e. less advertising and closing some bricks/mortar shops that weren't moving products. Better a company that is reponsive to market forces than one that doesn't have a strategy.

In the USA, we can probably do fine with mostly internet sales and a few shops.

I wonder if the reduction in average wages in the US is going to shift more sales to camera makes that have in body SR and less expensive lenses. Not to mention the ability to reuse older lenses. The canikon type companies just don't seem to care if older lenses are compatible with newer bodies.