Re: New Sigma Lenses Coming Shortly? [CR1]
privatebydesign said:
unfocused said:
privatebydesign said:
Canon doesn't care what Sigma sell for, they price their lenses where they need and go about their business. Sigma are no competition what so ever in a tiny third party lens market.
That implies that Canon is stupid, non-competitive and not innovative. I don't believe that's the case. The quality gap between OEM lenses and third parties has shrunk significantly in the past few years. Innovations like docking stations make it much harder for Canon and Nikon to cripple third party lenses (plus that implies a cavalier attitude toward their own customers that would be self-destructive.) supplemental lenses are always a tiny niche market (most cameras sold will never have a second, much less a third or fourth lens mounted on them) But with the collapse of the point and shoot market, all manufacturers are facing stiffer competition for the lucrative enthusiast market and Canon Would be foolish to cede any portion of that market. I don't think they are foolish.
No it doesn't, it might have a slight impact where Canon devote a small part of their R&D, but in a comparatively small market they know better than anybody how many they sell and how much it costs to make any item. If they see a market they will make a lens for it, if they don't they won't.
I know everybody pulls car analogies to pieces but think of it like this. Ford make 'off road' SUV's, so do Mercedes, Mercedes don't care what Ford sell their SUV's for, they might have a passing interest, but it doesn't form a solid reason for them to change what they do or the prices they charge. Mercedes also don't see a lucrative for them market in six wheel drive SUV's and pickups but they are happy to help AMG make them, and even though those 6x6's sell secondhand for nearly twice the new price Mercedes still don't see it as a money making opportunity. In making those specific business choices Mercedes are not stupid, non-competitive or lack innovation. They are smart business people who don't compete in the Ford market or the AMG market for reasons they decide are best for them.
We can't forget about the value of the Canon name and we can't forget about profits....
These numbers are pulled out of the air (made up)
Let's say it costs Canon $1,000,000 to develop a new lens and it costs $300 each to build them. They analyze the market and figure that if they charge $600 to the dealer that they will sell 10,000 copies. Those 10,000 sales brings in $6,000,000, and minus the $1,000,000 development costs and the $3,000,000 production costs, they come out $2,000,000 ahead....
Now say they analyze the market and determine that if they sell them to the dealers for $400 that they will double sales to 20,000..... Now the total revenue climbs from $6,000,000 to $8,000,000, but the $1,000,000 development costs and the $6,000,000 leaves them with a profit of $1,000,000.
All this said, it is very likely (a certainty) that Canon has looked at this in great detail and with far more data than we will ever have. They can most certainly sell their lenses and cameras for less, but they have picked a point to maximize their profit. A company like Sigma, which does not have the Canon nameplate on it to boost sales, will have a different set of variables used to select it's pricing and will therefore be different than Canon.
