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Camera conference General and model-specific E-System camera chat.

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Old 5th March 2019
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Invicta Invicta is offline
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Why is the E-M5 III running so late?

Why is the E-M5 III running so late and other Oly news from CP+ 2019 show.

https://www.imaging-resource.com/new...y-not-to-worry

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because they were moving the bulk of their manufacturing from Shenzen to Vietnam
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Old 5th March 2019
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Re: Why the E-M5 III is running so late?

Yes I just read that too. Quite a good article I thought. I also liked the one on weather sealing too.
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Old 5th March 2019
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Re: Why the E-M5 III is running so late?

Yes, I read that article last night myself. Interesting.

I'm sort of surprised that the cost of manufacturing is that much different between China and Vietnam though. Given the cost of the relocation it would have to be a huge difference. Taking the interviewer's analysis at face value, it seems that the relocation cost isn't just the cost of moving the factory (with all the retraining costs etc), but should also include lost opportunity and market share since it's clear to me that the E-M5ii is by competitor standards some way behind the curve now.

Maybe it'll all work out OK, but I'm beginning to wonder if this factory relocation is another Olympus corporate-level blunder. The impact on the past two years' financial statements is significant and if it's also caused loss of focus on key product sectors then someone should be asking difficult questions.
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Old 5th March 2019
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Re: Why the E-M5 III is running so late?

Quote:
Originally Posted by pdk42 View Post
Yes, I read that article last night myself. Interesting.

I'm sort of surprised that the cost of manufacturing is that much different between China and Vietnam though. Given the cost of the relocation it would have to be a huge difference. Taking the interviewer's analysis at face value, it seems that the relocation cost isn't just the cost of moving the factory (with all the retraining costs etc), but should also include lost opportunity and market share since it's clear to me that the E-M5ii is by competitor standards some way behind the curve now.

Maybe it'll all work out OK, but I'm beginning to wonder if this factory relocation is another Olympus corporate-level blunder. The impact on the past two years' financial statements is significant and if it's also caused loss of focus on key product sectors then someone should be asking difficult questions.
Iím being horribly racist here, but do you think the perceived product piracy of the Chinese may have a bit to do with it, especially if there is a threat to the profitable medical products? Otherwise I agree moving a whole factory production from one country to another seems a massive financial burden that must take years to recoup.

Also given the Japanese - Chinese political relationship is not altogether great, maybe thereís some state aid involved?
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Old 6th March 2019
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Re: Why the E-M5 III is running so late?

I think Olympus are extremely shrewd; they know like all good businesses that if they announce a new product, give details/dates, etc. then the profit margins obtained from their predecessors will plummet.

On the other hand, if they encourage (or don't correct) the belief that a particular model *cough the Pen-F is discontinued, then I believe as we are seeing that, that will keep the price arguably higher than if they had announced a replacement at the same time.
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