« on: February 23, 2012, 05:59:20 AM »
Wow - lots of posts overnight ! But there seems to a be a lot of confusion about prices. Let's try and bring some reality to this discussion:
Canon do not determine prices - we do, collectively, through our purchase decisions. If no one buys this thing (or insufficient to Canon's production line being kept busy) the price will drop. If it drops below some profit margin floor, they will cease production, and do something different.
Our willingness to purchase depends, as some have stated, on whether we have the cash or not (of course) but also on the perceived benefit compared to the alternatives: namely, swap to Nikon, or more likely stick with what we have already, and wait until something better comes along.
If the specification is not deemed by you and me to be worth $3500, the price will drop, regardless of exchange rates, cost to produce, hedging or anything else for that matter.
Contrary to popular opinion, price bears NO resemblance to the cost of producing these things. If it cost $2 to produce, they would still sell it at $3500 if they could - this is the delight of capitalism! If it costs them $3000 to produce, and Nikon forces them to sell at $2700 becuase of the D800, they have hard choices to make - sell at a loss to maintain market share whilst they think of something better, or reduce cost to produce (maybe move production to Thailand or whatever) or they choose to exit this market segment.
But to be be clear, Canon are driven by us, not the other way around. You can bet someone from Canon marketing is reviewing this site from time to time (or the Japanese equivalent), and who knows, maybe they are even changing price tickets as we speak...