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Olympus to consider using more common parts with Sony

Discussion in 'Micro 4/3 News and Rumors' started by slappy, Nov 19, 2013.

  1. slappy

    slappy Mu-43 Regular

    122
    Jan 14, 2013
    Guildford, Surrey, UK
    from the Japan Times:-
    Nov 19, 2013

    Olympus Corp. President Hiroyuki Sasa has said that the optical equipment maker will consider expanding the use of common parts of digital cameras with its top shareholder, Sony Corp., to cut costs in the loss-making business area.

    Sasa showed the plan in a recent interview. Olympus currently procures image sensors, a key image-processing component of digital cameras, from Sony.

    Olympus has been scaling back its digital camera operations by halving production of compact models and deciding to cease the development of new single-lens reflex cameras.

    The company’s imaging devices division, which handles digital cameras, suffered an operating loss of ¥23.1 billion in the year that ended in March.

    Sasa said that the digital camera business “is unlikely to post major growth.” How to reduce the loss is a major challenge for the firm, he said, adding that sharing image sensors and other high-priced components with Sony is “a key issue that needs to be studied.”
     
  2. RevBob

    RevBob Super Moderator

    Jun 4, 2011
    NorthWestern PA
    Bob
    Hmmm, be interesting to see what other parts they might share.
     
  3. robbie36

    robbie36 Mu-43 All-Pro

    Sep 25, 2010
    Bangkok
    rob collins
    There was an interesting additional comment that came out of this interview.

    I quote from 43rumors.com 'Olympus and Sony are working together on the camera and lens front. This means “one-step” integration in the distribution network and camera parts purchases to reduce the costs.'

    If Olympus was to merge its distribution network into Sony's there would be huge savings. Olympus imaging's SG&A costs are totally out of control - they amount to US$500m a year and are approximately 53% of sales. I know of no other product manufacturer on this planet with that high a ratio. So it really isnt surprising that Olympus imaging will lose another US$100m this year.

    Personally I think it is only a question of time before this business is merged into Sony.
     
  4. demiro

    demiro Mu-43 Hall of Famer

    Nov 7, 2010
    Seems logical, and it would be amazing, imo, if they were brought together in a positive manner. But that seldom seems to happen...
     
  5. robbie36

    robbie36 Mu-43 All-Pro

    Sep 25, 2010
    Bangkok
    rob collins
    This is probably true but really the only alternative is that Oly's imaging division disappears altogether. Oly's imaging sales have shrunk 75% over the last 5 years and it core fixed sales, distribution and service costs are now way too high for the business to be ever be profitable. (Remember that most people on this forum think Oly should spend more on marketing.) SG&A expenses are over 100% of mirrorless sales.