« on: December 04, 2012, 01:43:57 PM »
Yes, and keep in mind that they don't make any profit on the first batch of cameras, no matter how much they charge. I'm guessing that before a camera like the 5DIII is released, there are several years' worth of research and development by a very advanced work force. There is likely a huge "money suck" of salaries, benefits, facilities, taxes, etc., before the 5DIII earns any money. Once the camera is released, they have to sell quite a lot of them to even break even on their investment. So whether the camera is priced $3,500 or $3,000 initially, they are probably not making any profit at that point, just recouping a very substantial investment. I'm just guessing, of course, and I have no idea whether or why Nikon would do things any differently.... Those who paid the early adopter price weren't milked by anyone. Those who bought it early made the calculation that it was worth paying extra to have the camera 8 months earlier rather than 8 months earlier. If the camera didn't deliver good value for them at $3,500, they would not have bought it. You can call it "grossly overpriced" but the camera market seems to be very competitive, with plenty of alternatives at many price levels. If photographers are willing to pay a higher price for a particular camera, then it is worth that price to them at that time. Canon is a business, not a photographers' aid society, so they're allowed to make a big profit if they deliver something highly desirable to their customers. Sure, people have a right to complaint about anyone's pricing. But with the number of the businesses making a big profit in the world, such complaining can become a full-time occupation.
+1 its funny folks forget that Canon is free to charge whateve they want and customers are free to choose whether or not they want to pay it. The consequences of anything different are rather unsavory...
certainly there is an intial investment that Canon amortizes across the expected life to produce x amount of profit over time. I'm sure that is carefully modeled and my guess is that the 5D3 project was approved under that (and other) scrutiny. Whether the financial models include a high into price or not I don't know, but I suspect so. If they made a few hundred more on the first few thousand units that would be money in the bank, to be sure.