Herb wrote:
----- Original Message ----- 
From: "Herb Chong" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Thursday, June 02, 2005 3:16 AM
Subject: Re: Predictable Pentax


> 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.


Certainly not. Making a high-emd body for Pentax makes no sense at present as 
virtually no one would buy one. Sure, they could make a body somewhat higher 
than the *istD but thats about it at present. The only high-end Pentax have any 
hope to be a player is in digital MF. Pentax didn't even see the need to have a 
high-end 35mm film body after 1980. A high-end DSLR cost several magnitudes 
more to develop than, say, an LX replacement with much smaller sales. Very few 
first time Pentax DSLR buyers would buy a high-end DSLR. Hence, they need to 
have a DSLR customer base installed before higher end model are being released.


Pål



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