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Panasonic dismantles camera division and to put it under the umbrella of other busines
  • EnoEno

    Nikkei reports that Panasonic will dismantle six of their divisions. The camera division will be put under the umbrella of other business division to streamline the costs. This is the google translated text:

    "Panasonic will make further restructuring for six unprofitable projects. In addition to considering the liquid crystal panel production line and the sale of shares of the semiconductor business company in the fiscal year ending March 2018, we will reduce the number of staff by dismantling three business divisions such as digital cameras this spring.

    Three business divisions handling digital cameras, telephone exchanges and optical discs are demolished. Reduce the number of staff by transferring it under the umbrella of other business divisions to reduce the scale of the project."

    This is an effort to reduce personal and costs. What’s also interesting is that they plan to quite from the semiconductor business.

    The original article here: http://www.nikkei.com/article/DGXLASDC23H1G_T20C17A3MM8000/

  • 16 Replies sorted by
  • Vitaliy_KiselevVitaliy_Kiselev

    http://www.personal-view.com/talks/discussion/15949/15-years-of-lumix-cameras-brand-upcoming-year-can-be-last/p1

    Depending on cameras division sales we can even see some organization changes and even Lumix brand abandonment in 2017.

  • EnoEno

    "even Lumix brand abandonment in 2017" This wold be very bad! :(

  • ntsanntsan

    English version of the article http://asia.nikkei.com/Business/Companies/Panasonic-takes-out-scalpel-again-as-profits-falter

  • Vitaliy_KiselevVitaliy_Kiselev

    These six businesses are expected to report aggregate sales of roughly 380 billion yen ($3.42 billion) in the fiscal year ending March 31, accounting for about 5% of the total, and operating losses totaling about 46 billion yen.

    It is all, LCD, semiconductors, etc. So cameras seems to be below 1%.

    The fields that Tsuga plans to put front and center -- automotive and housing-related products -- are expected to enjoy solid growth but are not exactly new.

    Something tells me that they can expect bad surprises here. As income will fall it is exactly two first categories where bloodbath will start.

    Major electrical equipment makers worldwide have had to reckon with the commoditization of products -- a lack of differentiation that drives prices lower.

    And it is just capitalism laws. You have profits fall to or below average profits across economy.

  • EnoEno

    Maybe they plan on merging the camera division with the cinema division and make the best of both worlds, who knows?

  • Vitaliy_KiselevVitaliy_Kiselev

    @Eno

    They did it one year ago already.

  • EnoEno

    @Vitaliy_Kiselev I hope they'll still be producing cameras and lenses in the future. :)

  • ntsanntsan

    http://www.panasonic.com/global/corporate/ir/pdf/panasonic_ar2016_e.pdf

    from page 67 it talk about bit about camera, despite overall camera sale decrease the mirrorless camera sales actually increased. So look like DC maybe gone but the mirrorless will stay regardless

  • EnoEno

    This is interesting:

    "Reports in the media suggest Panasonic are dismantling the ‘digital camera’ division with some even speculating that Panasonic will pull out of the camera market like Samsung. In fact according to Yosuke Yamane of Panasonic, the company is re-doubling their focus on cameras like the GH5 and planning more releases in 2017."

    http://www.eoshd.com/2017/03/panasonic-will-accelerate-lumix-project-new-structure/

  • Vitaliy_KiselevVitaliy_Kiselev

    @Eno

    Whole thing originate from simple fact that author do not understand that he talks about

    Earlier this year Yosuke Yamane of Panasonic spoke at CES 2017 about the company’s plans for the new division.

    Decision made is not on the level of camera guys.

    And any CES talks must be ignored.

  • EnoEno

    "The recent article featured on the Nikkei regarding Panasonic’s Imaging business was not announced by Panasonic and refers to a change in our internal organizational structure. Integrating all consumer electronics divisions, our consumer Digital Imaging business will move under Panasonic Appliances Company and is not being dismantled. The aim of this change is to further deepen our relationships with customers, strengthen our product capabilities, and continue to firmly develop and promote our business."

    http://www.43rumors.com/this-is-the-official-panasonic-statement-about-their-camera-business-plans/

  • Vitaliy_KiselevVitaliy_Kiselev

    @Eno

    Read it carefully.

    In reality it just fully same as told by Nikkei. Just some PR manager want to use softer words to calm down markets.

  • EnoEno

    @Vitaliy_Kiselev

    I'm no expert in financial analysis etc, but I strongly disbelieve Panasonic will dismantle their camera division (not in the near future at least). The GH series is very popular and they get good "margins" from it. Compact cameras on the other hand may be a totally different story. In the end we can only wait and see.

    But even if I'm completely wrong and Panasonic will ditch the camera division altogether, I'll still buy two GH5's cause there's practically nothing on the market that can compare to it and I don't think there will be anything similar very soon (from the other manufacturers, in this price range at least). :)

  • Vitaliy_KiselevVitaliy_Kiselev

    @Eno

    They will scale it back, nothing more for now.

  • NickBenNickBen

    They are simply future looking, just like the stock market trades on future trends, not past performance...

    I find it interesting that based on normal human visual perception, the NHK/BBC roadmaps for traditional 2D video/film go to 8K UHD 120fps as the final 2D video broadcast spec launching in 2018-2020 for the upcoming Olympics (Red is already there selling commercial 8K cameras), while future potential broadcast paths are all VR/AR related. Panasonic already announced their intent to immediately march to 8K after the GH5 release...

    So, maybe Panasonic corp. is being wise, sees Micro Four Thirds as a system losing at 8K to S35, FF and larger sensors at higher resolutions, and doesn't have a lot invested in IP in the fields of VR/AR after the big 3D debacle of which they led the way, seeing the writing on the wall for 2D after their next 8K camera releases, and winds down from there as profit margins once again shrink once all companies get there, they compete on price, and then everyone whittles away until 2 or 3 companies remain, of which they are not interested fighting that financial war anymore...

    After all, once smart phones came out, do you see people reaching for calculators anymore, and companies reinvesting in making newer calculators?

    I think it is simply Panasonic being financially prudent for long-term survival, having gotten burnt on 3D...

  • Vitaliy_KiselevVitaliy_Kiselev

    @NickBen

    They look at 8K not because it is near future and real thing.

    They look for 8K because it is still almost empty niche with huge margins.

    Considering VR/AR, tech is not ready for any mass market yet. Now it is all of the same.

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