On Thu, Jan 19, 2006 at 03:09:08AM -0500, [EMAIL PROTECTED] wrote:
> In a message dated 1/18/2006 9:10:07 PM Pacific Standard Time, 
> [EMAIL PROTECTED] writes:
> This agreement works for both parties.
> 
> Initially:
> Pentax gets K mount cameras and lenses they've built into Samsung's 
> distribution stream.
> Samsung gets a DSLR line with their brand on it, and a supply of good 
> quality lenses to sell.
> 
> In the long run:
> Pentax gets R&D help on their DSLR line and probably lower prices on 
> components.
> Samsung gets lenses for their "new" DSLR line and camera design expertise.
> 
> Samsung cameras will probably sell for less in big box stores that 
> Pentax no longer has a presence in. 
> 
> Will it work?  Who knows.
> =======
> I agree with all that, but I have a yes but...
> 
> Yes, but... a Samsung DS2 rebadged competes with a Pentax DS2. Which is NOT 
> good for Pentax because Samsung has better distribution outlets and greater 
> name recognition with the general public. So basically Pentax can't sell DS2s 
> once Samsung starts selling them. Which means Pentax has to concentrate on 
> upper 
> end stuff or stay one step ahead of what Samsung releases -- with new 
> technology, new features, more mp or something.

Those cameras may have the name 'Samsung' blazoned across the front, but
they still come off a Pentax production line, and earn money for Pentax.
Sure, the profit has to be split with Samsung, but a small piece of a
large pie is considerably better than the whole of a much smaller pie.

I'd expect Pentax will make more profit from selling Samsung-badged cameras
than they would ever make selling the same model under a Pentax brand.  So
this _is_ good for Pentax; they have extra money to throw into the R&D pot.

Pentax are more likely to have the funds to develop a serious DSLR to go
head-to-head with the D200 & 30D (and more likely to be able to sell such
a camera as an upgrade to entry-level DSLR purchasers) with the increased
revenue and increased market share that the Samsung deal should bring them.

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