Olympus eyes 20 percent share in high-end digicam


K3N

Senior Member
Aug 21, 2004
575
0
16
#1
http://www.reuters.com/article/idUKTRE6232FA20100304?type=companyNews
Kikukawa, who took the helm at Olympus in 2001, said he aimed to bring the camera division's operating profit margin to at least 10 percent in five years, compared with an estimated 2.8 percent in 2009-10.

"Growth in high-end camera sales comes with growth in sales of lenses and accessories, which are also high-margin products," he said. "We need to hit a 10 percent margin in five years at the latest. Otherwise, it would not make a lot of sense for us to stay in the business."
...

Olympus, the world's fourth-largest maker of high-end cameras behind Canon, Nikon and Sony Corp, is the No.1 maker of endoscopes used to examine internal organs with a global market share of about 70 percent. Smaller rivals include Hoya Corp and Fujifilm Holdings

It seems that Olympus wants to increase high-end camera sales. Could this mean a renewed focus on high-end 4/3 cameras?
 

lekkousa

New Member
Jun 26, 2008
13
0
0
#3
He is speaking of "margins" not "sales"

Yes if he increases sales, margins should improve due to "economy of scale" but that also requires additional investment in plant and equipment to meet demand. Otherwise he could increase margins by lowering production costs, outsourcing to vendors, relocating factories etc.

Personally I would hate to see them stop producing lenses in Japan as the quality of the Zuiko lenses is what made me switch to Oly in the first place!
 

K3N

Senior Member
Aug 21, 2004
575
0
16
#4
He is speaking of "margins" not "sales"

Yes if he increases sales, margins should improve due to "economy of scale" but that also requires additional investment in plant and equipment to meet demand. Otherwise he could increase margins by lowering production costs, outsourcing to vendors, relocating factories etc.

Personally I would hate to see them stop producing lenses in Japan as the quality of the Zuiko lenses is what made me switch to Oly in the first place!
http://english.thesaigontimes.vn/Home/travel/movies/1426/

This article might interest you. Its possible they might move production to their Vietnam plant.
 

Anthony Lee

Senior Member
Feb 12, 2009
2,465
2
38
Shunfu Road, Singapore
#5
Only profitabality counts. Oly of the old days were very profiable but since they switched to 4/3 it has been downhill. Will m4/3 bring them back to where they were is still a huge ?. Look at Canon and Nikon, both with almost similar models and where they are compared to Oly. What a shame as I still love my OM SLR and all the wonderful OM lenses.

He is speaking of "margins" not "sales"

Yes if he increases sales, margins should improve due to "economy of scale" but that also requires additional investment in plant and equipment to meet demand. Otherwise he could increase margins by lowering production costs, outsourcing to vendors, relocating factories etc.

Personally I would hate to see them stop producing lenses in Japan as the quality of the Zuiko lenses is what made me switch to Oly in the first place!
 

powergoo

Senior Member
Dec 13, 2005
1,211
0
36
#6
my goodnes...margins of 3% now goin for 10%....

tat's very bad for any company....and we r not talking abt fmcg here
 

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