Originally posted by mecrox Operations like Canon, Nikon or Sony are entirely based on selling huge volumes of kit over all parts of the market. It is this which allows the development of the high-end stuff for "The Serious" (a collective noun for photography enthusiasts, perhaps)
I seriously doubt that that's true. The margins on the high end stuff are almost always much greater than the low-end stuff. Companies make little, if any money selling kit lenses and entry level cameras. The margins are on the mid- and high-level stuff. It's fairly well acknowledged, for example, that Fuji is making money on their X series of cameras, particularly the pricey X-pro (along with the pricey X lenses). Olympus probably makes money on the E-M5; but I have seriuos doubts about their entry level Pens, some of which are being dumped on the market at prices below what compact P&S cameras sell for. In economics, there is theory known as "perfect competition," where all products are pretty much alike and no company enjoys special monopoly advantages. Under such a market, nobody makes profits. The low-end markets approach the conditions limned by the perfect competition theory. Competition is so intense that none of the smaller players can make any money in that market. So for example we find Pentax deciding to go without any entry level camera for the nonce. Why would they do this? Well, maybe their entry level cameras weren't making any money.
Originally posted by mecrox But writing off MILCs is kind of crazy in my view. They are a serious business even if they are not for you or I and they may turn out to be the key business over the next decade because they are the best vehicle for bringing new technology to the broad mass of the market.
If I've left the impression that I'm writing of MILCs, then I've been misread. As a matter of fact, I regard m4/3 as a very promising format for those who want a compact system. I also have a lot of respect for the Fuji X system and the Ricoh GXR. I merely believe that predictions holding that compact MILCs will replace DSLRs are misguided. People who make such predictions are guilty of concentrating way too much on cameras, rather than the system (and particularly the lenses) that is built around the camera. While it is true that many consumers rather doltishly buy the camera first and then buy into the system later on, no real commitment to a brand takes place until the photographer begins investing into lenses, flashes, and other expensive accessories. And it's by having people commit to your brand (i.e.,buy a lot of expensive stuff that can't be used with other brands), that companies make the bulk of their profits. Nikon and Canon produce the best system camera; and that's why they're the most profitable brands. DSLRs are better
system cameras than MILCs (it's not even close); and because larger cameras are needed to balance the larger lenses and powerful flashes favored by most serious photographers, DSLR
systems are likely to be superior
as systems to other formats for many years to come. Putting android in cameras is not going to change that. On the contrary, it strikes me as a rather desparate gesture on the part of companies who aren't making money on their products because they still haven't figured out how to make a great system camera.