Truth about Konica Minolta's future

[beachluvr]

There seems to be so much confusion and misinformation about Konica Minolta and Sony with regard to digital cameras. Some have jumped to the conclusion that Konica Minolta has gone out of business or closed their doors to the camera industry. Please read the real story below, if you are considering a digital camera purchase you need to know the real story as opposed to the opionions of the numerous forum posters:

[KM News]

Konica Minolta and Sony have reached an agreement to jointly develop digital Single Lens Reflex (SLR) cameras. Taking full advantages of their respective imaging technologies and key devices, the two companies will develop and commercialize new digital SLR cameras based on and compatible to the Maxxum/Dynax lens mount system.

Konica Minolta has superb autofocus auto-exposure technologies nourished through development of “Maxxum/Dynax series” from the age of film cameras, mechanical electronics technologies indispensable for SLR cameras, and sixteen million units of lens shipped worldwide. In addition, Konica Minolta has enthusiastically innovated cutting edge features, such as, for the first time, incorporating a CCD shift-type body-integral Anti-Shake technology.

Sony has numerous technologies and devices essential for digital imaging equipment, such as CCD and CMOS imaging sensors, image processing technologies and lithium ion batteries. Moreover, Sony’s strength in product planning, total design and high-density mounting have created a series of breakthrough compact and light digital imaging products. With products such as “Handycam” video cameras, and “Cyber-shot” digital still cameras, Sony has greatly contributed to expanding the digital imaging market.

Both companies, utilizing respective unique technologies, will begin joint development of advanced and feature-rich digital SLR cameras. According to recent CIPA (Camera & Imaging Products Association) data, the digital SLR camera market reached 2.5 million units in 2004, and is expected to further expand to 3.6 million units in 2005.

[coldrain]

It would help if you would also point out that this is a very old press release, from a year ago or so. Now things have changed, and KM is closing its camera business, and has sold Sony its DSLR part. KM will keep on manufacturing lenses.

Why post old news when it is superceded by different events?



"Ever since we decided and announced restructuring guidelines of our businesses on November 4, 2005, we have been considering practical and detailed plan, and we would like to announce our decision made today as follows:

1) Camera Business

In camera business, we have reached an agreement with Sony Corporation(Sony), having numerous image sensor technologies such as CCD and CMOS, to jointly develop digital SLR cameras in July 2005. In order to continue to have our customers use Maxxum/Dynax lenses, and to maximize possibilities of the optical, mechanical and electronics technologies accumulated through development of SLR cameras in the years to come, we came to the conclusion that it was best to transfer assets concerning camera business to Sony. Since then, we have been negotiating with Sony, and as a result, we have reached an agreement with Sony to transfer a portion of assets regarding digital SLR camera system to Sony*1. In this relation, we have decided to withdraw from camera business*2, such as film cameras and digital cameras, within Konica Minolta Group as of March 31, 2006.

Sony is planning to develop digital SLR cameras compatible with Maxxum/Dynax lens mount system, so that the current Maxxum/Dynax users will be able to continue to use them with Sony’s digital SLR cameras. In addition, we will consign camera service operations for Konica Minolta, Konica,Minolta brand cameras and related equipment to Sony.


*1
Pease refer to the news release, “Partial Transfer of Assets Related to Digital SLR Cameras “, separately announced today.
*2
Except for digital SLR cameras and interchangeable lenses produced for Sony."


"Partial Transfer of Certain Assets Related to Digital SLR cameras

Since July 2005, Sony Corporation (Sony) and Konica Minolta Photo Imaging, Inc. (Konica Minolta PI) have been working on the joint development of digital single lens reflex (SLR) cameras. Sony, Konica Minolta Holdings, Inc. and Konica Minolta PI are pleased to announce that they have decided to transfer a certain portion of Konica Minolta PI ’s assets related to digital SLR cameras to Sony, and at the same time, that Konica Minolta PI will consign its customer service operation for Konica Minolta cameras and related products* to Sony. Agreement to this effect was reached today.

Under this agreement, on March 31 2006, Sony will receive certain assets from Konica Minolta PI that are necessary for the development, design, production and so forth of digital SLR cameras compatible with Konica Minolta PI’s “Maxxum/Dynax lens mount system”.** Sony will accelerate development of new digital SLR cameras based on and compatible with the Maxxum/Dynax lens mount system with a view to marketing these models this summer.

On the basis of its ongoing “selection and concentration”, Konica Minolta Group will concentrate on its core “business technologies” field and its strategic “optics and display devices” field and withdraw from camera business*** as of March 31, 2006. At the same time, Konica Minolta PI will partially transfer certain assets related to digital SLR cameras to Sony.

From April 1 2006, Konica Minolta PI will consign the customer service operations for Konica Minolta cameras and related products* to Sony, and Sony will implement service operations from that date onward.

* Konica Minolta, Konica and Minolta brand film cameras, digital still cameras, lenses, accessories etc.
** An original lens mount system to connect camera body and lens adopted in Konica Minolta Maxxum/Dynax series SLR cameras
*** Excludes production of digital SLR cameras and interchangeable lenses for Sony"

In short, Konica Minolta is getting out of the digital camera market. They transfer the rights on their DSLR technologies and know-how to Sony, and will produce Sony designed DSLRs and lenses in the transfered parts of the KM camera business.

This will ensure that the Minolta lens mount system will remain, and that Sony has a good start to compete with Canon, Nikon, Samsung/Pentax and Panasonic/Olympus in the DSLR market.

[beachluvr]

This is from PMA Newsline International dated today, February 1, 2006:

"Sony plans to roll out its first high-end DSLR model jointly developed with Konica Minolta this summer. The company plans to entrust manufacture of its DSLRs to Konica Minolta's Malaysian company through capital participation. A certain number of designers and engineers may be transferred from Konica Minolta to Sony, but details are not disclosed, says PEN News Weekly. (Source: Photo Marketing Association's Newsline International) "

[beachluvr]

Konica Minolta Group will concentrate on its core “business technologies” field and its strategic “optics and display devices” field and withdraw from camera business*** as of March 31, 2006.

*** Excludes production of digital SLR cameras and interchangeable lenses for Sony"

No more KM point-and-shoots - long live KM DSLRs (with Sony logos on them) ........................................
:D

[capedeci]

sounds like the two of you always have different opinions :D

I want to know, is Minolta go bankrupt and then bought by Sony, or they are just bought in healthy condition because Sony want them?

[coldrain]

sounds like the two of you always have different opinions :D

I want to know, is Minolta go bankrupt and then bought by Sony, or they are just bought in healthy condition because Sony want them?
Because of heavy competition, KM decided to partner with Sony on DSLR's.
Before KM was KM, both Minolta and Konica were separate companies. They merged not long ago, because they were both not doing too well on the camera business.

Now KM has decided to pull out of the camera business, other parts of KM will continue. They will shut down the all in one camera part, and sell to Sony the DSLR part. They will keep on producing lenses for Sony. They are not bankrupt, they just decided it would be best to close the camera part and let their new partner in DSLRs take over that part.

In summer Sony will introduce their first DSLRs (unless they will surprise everyone at the PMA), and I am very curious to what their cameras will offer :).

[beachluvr]

Capedeci -

To the contrary, I agree with coldrain's latest post. And as far as differing opinions, yeah there is almost nothing you read in these forums that isn't an opinion. I would worry if we all had the SAME opinion. I respect coldrain's opinions. People will naturally feel best about products they own and are most familiar with.

Most of the rest of what all of us talk about are just our opinions on what we read and hear. When you read a "professional" review that is an opinion too. Most reviewers only have the product they are reviewing in their hands for a short time. What makes their opinions a little more valid is they get to do some real life comparision between many, many brands and models. I do differ with coldrain about "user" reviews. I consider them equally important as anything else.

The best way to buy anything for me is to get as MUCH information as I can, which usually means weeding through the user reviews and separating the ones with merit from those who are written by shills of the manufacturers, people who hate anything made by a particular manufacturer, and people who just don't have a clue what they're talking about. The rest of them likely represent good honest people who have a lot to share with me about what they like and don't like about what they bought.

I haven't run multi-year financial histories of camera manufacturers and really don't have an interest in doing so, but I do know Konica Minolta has been very successful and is not bankrupt. Canon, Nikon and most other companies, including Sony, have had ups and downs in business and periods they "were not doing well". That is the life in the business world. I am much more concerned with buying a product that is built well, has the features I want and offers a good value for my money, than worrying about the business implications behind the scene. I am sure I will have fun and get a useful life out of my KM 5D and that I will get reasonable support if I need it ... what more could I want?

[red hot sheep]

So would it be a good idea to buy a KM Dslr now then? I mean, their prices are plummeting after this news, and now, at least in places, the 7D comes with free grip. Plus, KM would continue to make lenses!