Why dont Panasonic and Olympus Merge Their Camera Divisions !

[Robstar1963]

With the news that Panasonic are restructuring their business to address loss making issues etc and Olympus already having admitted that their imaging division is far from where they want it to be; why do they not merge their camera and video businesses
This could result in
1. A much more streamlined model range reducing overal costs
2. Reduced overal R & D costs
3. Shared technology - one Dual/Sync I S system saving costs on competing and providing a unique selling point for MU43 users especially compared to rival DSLR systems
4. Less need to develop something unique to their own company avoiding further development costs
5. Savings on production costs - use shared shutter technology, shared sensor technology, shared I.S technology (and shared product lines for each of these components)
6. Savings on advertising and promotion, distribution , savings on staff, factory space, etc etc
There seems to be a danger at the moment of both companies failing in the long run ( not in an absolute sense perhaps but in the terms of making themselves profitable) surely it would be so much better especially with their shared M43 standard and shared interests, to join forces and save and improve both companies to a point where their superb system can prosper as a truly joint venture !

 

[Phocal]

No thanks

 

[Hypilein]

Because they are different companies with different design philosophies. To be frank, the idea of merging the two is nothing but naive.

 

[kevinparis]

With the news that Panasonic are restructuring their business to address loss making issues etc and Olympus already having admitted that their imaging division is far from where they want it to be; why do they not merge their camera and video businesses
This could result in
1. A much more streamlined model range reducing overal costs
2. Reduced overal R & D costs
3. Shared technology - one Dual/Sync I S system saving costs on competing and providing a unique selling point for MU43 users especially compared to rival DSLR systems
4. Less need to develop something unique to their own company avoiding further development costs
5. Savings on production costs - use shared shutter technology, shared sensor technology, shared I.S technology (and shared product lines for each of these components)
6. Savings on advertising and promotion, distribution , savings on staff, factory space, etc etc
There seems to be a danger at the moment of both companies failing in the long run ( not in an absolute sense perhaps but in the terms of making themselves profitable) surely it would be so much better especially with their shared M43 standard and shared interests, to join forces and save and improve both companies to a point where their superb system can prosper as a truly joint venture !

will never happen

two very different companies.. Panasonic are more akin to Sony/Phillips/Samsung.. giant corporations selling consumer and professional electronic products across a whole range of constantly changing sectors.

Panasonic, like Sony have a history in video/broadcasting equipment, but little history in photographic equipment.

Suspect that Panasonic entered the camera business in response to Sony's acquisition of Minolta

Olympus on the other hand are a much more niche company ( probably 1/10 of the size of Panasonic), now predominantly selling high value medical imaging equipment, with a historical sideline in photographic gear and some miniaturised audio gear. Their core business is optics and imaging

K

 

[GBarrington]

Frankly, I'd prefer that one of them go out of business rather than merging. That way, the surviving company can buy or license whatever technology the other company can't use, and there'd be fewer hard feelings from existing users of the failed system when the newly merged company isn't a clone of the failed company.

Besides there'd be better short term bargains in the supply chain for us end user's.

 

[tkbslc]

Suspect that Panasonic entered the camera business in response to Sony's acquisition of Minolta

Panasonic started making cameras in 2001 and had a partnership with Leica from day 1.
Sony bought Minolta's camera division in 2006. Probably not related.

 

[kevinparis]

Panasonic started making cameras in 2001 and had a partnership with Leica from day 1.
Sony bought Minolta's camera division in 2006. Probably not related.

I stand corrected... I would have never put the Minolta deal as being that late.. Also Leica in 2001 were probably happy to get money from anywhere

K

 

[davidzvi]

It wouldn't be a merger if it were to happen. It would be a buyout.

 

[barry]

Competition normally fosters innovation.
Even if it means many lenses with the same focal lengths.

 

[ahinesdesign]

I could see a buyout happening before a merger (for all of the reasons mentioned above) but is Olympus even in a position to do that? I'd give Panasonic a better chance of surviving just due to the size of corporate muscle they have. Then again, I'd have said the same thing about Samsung... The competition between Olympus and Panasonic has certainly been great for the m4/3 system.

 

[davidzvi]

Actually there was one merger/assets acquisition I would have LOVED to see this year.

I wish Nikon could have worked out a deal to acquire the rights to Samsung's NX mirror stuff. They could have started off buy simply re-branding the NX1 and NX500.

 

[Lescrane]

Makes sense because entire market is shrinking. Model would ne when the transition from film to digital took place, Minolta merged with Konica, then they disappeared as brands(bought by Sony). Pentax and Ricoh merged. Now we have 3 trad. Dslr companies, 4 if you include Sony.

Some of us like Panny some like Oly but does the market support both and if they thinned their offerings and shared marketing and other overhead it might keep the segment alive.

I've always wondered why mid range dlsrs and m43 bodies still cost 1000.00 whereas other electronics have come down.(pcs, flat screen tvs, etc.) I have to think it's low volume, so many models developed but so few customers.

 

[ahinesdesign]

I've always wondered why mid range dlsrs and m43 bodies still cost 1000.00 whereas other electronics have come down.(pcs, flat screen tvs, etc.) I have to think it's low volume, so many models developed but so few customers.

The relatively low volume is a likely cause, as is high R&D costs.

I think enough people could justify the cost if they really wanted a dedicated camera. Lots of people spend big bucks on iPads, Mac Books, cell phones, game consoles, big screen TVs, cars, etc, even when less expensive options exist. The difference is that they "need" it or just really want it and will make the sacrifices necessary to have it.

Traditional photography's popularity has largely passed, it seems.

The rise of the camera-equipped smart phone made it far too convenient to get "good enough" images that are easily shared. Most people that I know that have a dedicated camera (my own wife included) would rather use a phone, even when they admit that the quality suffers. Its a lot of work to drag along a camera, try to manage it along with other devices, kids, etc., then transfer photos later (not to mentioning editing!) when you just want to quickly and effortlessly post a couple to Facebook or Instagram to share what you did that day.

I think there will always be photographers who value image quality over convenience, and enjoy the experience of shooting with a dedicated camera, but will it be enough to keep all of the manufacturers alive?

 

[Lescrane]

They say "the best camera is the camera you have with you"...and as you said, for most, it is the cellphone. How many people even print photos these days? I'd guess about 95% or more of photos (or images) taken are only shared digitally. Frankly, I have 2 A3+ printers on my desk which I hardly use As we know, the low res of the lcd screen doesn't require much. Everyone asks me as an "expert", what kind of camera do I need? It's always the same answer, or more of a series of questions, like: What are your subjects? Do you print, and if so, how large? Do you want to learn how to use a camera, or just point and shoot? etc etc. I don't mourn this "progress", it's amazing we still have the selection we do. There's no middle anymore, eg "point and shoot", as you say they have cellphones for that.
I was wrong at how fast digital replaced film, I thought it would take longer. I also thought that prices on DSLRS, ILCs would come down. After all, they should be *cheaper* to produce than a camera that had so many moving parts, springs, pulleys, and the like. They required a lot of manual labor. I'm dating myself, but I remember the first time my parents bought a color television; it cost about 400.00 for a 19 incher, which was about 2 weeks pay for the masses. Now you get a 48 inch LCD for the same price. Adjusted for inflation it would be, what, about $2,000.00? They are pretty much commodities now, and our cameras will never go that route, as you said, due to tiny volume, and maybe there's more differentiation between models due to our preferences. I bought a car recently, and thought, wow, what a deal....... brand new vehicle and it's only cost about the same as 25 DSLRS!!!

 

[pake]

IF they merged I'd bet they'd only manage to create cameras and lenses with only the negative things combined, e.g. cameras would use video features by Olympus and lack the HiRes modes etc. So instead of getting superior equipment we'd only get crappy ones.

 

[DaveEP]

I hope they never merge. Competition is good for us. Having only a single major company in M43 weakens it's appeal to new users upon whom the future will depend.

 

[Clint]

Any thing that would cause either Panasonic or Olympus to cease their camera business would be a humongous negative change for us.

 

[pellicle]

... Also Leica in 2001 were probably happy to get money from anywhere

I think they pretty much still are ... ;-)

 

[pellicle]

Panasonic started making cameras in 2001 and had a partnership with Leica from day 1..

I was living in Japan at the time and was curious about the Panasonic cameras coming out. It was always great to wander around the Yodobashi store in Shinjuku ...

A quick ref to grab (which reveals the zaibatsu heritage {I mean not that there are zaibatsu anymore } of Panasonic)
Matsushita and Leica unveil digital cameras

 

[wolfie]

The Olympus camera division is a way of writing off imaging R&D for the medical division. So long as the endoscopes keep selling I imagine the camera division will be retained and be "subsidised".