expanding the base works only if you are not losing a lot of money while
doing it. if you do, there's no money left for when the demand curve
flattens and prices drop. in the case of the DSLR market, the price
competition is going to get much worse in the next couple of years and
profit margins are going to drop further. that is why delivering a high end
body now makes sense. Fuji, Olympus, and Konica-Minolta have made
indications that this is their strategy. large market share at razor thin
margins or small market share at large margins? playing at the low end is a
good way to go out of business.
Herb....
----- Original Message -----
From: "Village Idiot" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Wednesday, June 01, 2005 1:09 PM
Subject: Re: Predictable Pentax
I have to complete agree with Pål on this. Pentax had a shrinking SLR base
prior to the DS, so expanding the SLR customer base makes a lot of sense.
I know the hard core Pentaxians want a pro DSLR, but expanding the customer
base is a smart thing to do, especially while they are working on
(hopefully) a pro version. I know my first camera was an ME Super, but
that led to buy an LX later.
