Saturday, February 7, 2009

Politic as “unusual”

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Hi Pentaxian friends.

Here in the USA, the economy has weakened so much that our future isn’t as bright as it once was. People are losing their jobs at a rate of half a million every Month. Manufacturers and Retailers are closing their doors because Banks aren’t lending any money. Banks aren’t lending money because they screwed-up big time in the name of greed. We, “The People” are stuck with the bill. The public’s confidence for a moderately quick recovery is spiraling downward at an ever-increasing rate. I don’t believe in stimulus packages as half the experts are enticing us to spend more while the other half is suggesting that we save our money. One suggestion is counterproductive to the other.

When one person loses his or her job, the domino effect is very consequential. That person will no longer eat out, or shop for new clothes. That person will purchase less nutritious food and will look for low prices. That person will probably not go out to the movies and that person will have a million things to worry about, let alone buying a new DSLR. Consequently, other folks will lose their jobs because the demands for their products or services are declining at the same rate as people are losing their employment. Take this one-person job loss and multiply that by five hundred thousand times each Month. It’s catastrophic.

Circuit City - Bankrupt in November 2008.

CompUSA - Closed in 2007

Minolta became Sony in 2006.

Since the USA has always been the biggest consumer, other Countries are starting to feel the pain as their exports to the USA are declining. It’s a matter of supply and demand. The same vicious circle is now being felt by other regions of the world.

What will that mean for the sales of DSLRs here in the USA and Worldwide? For one thing, fewer people will purchase new cameras and equipment. This might translate to manufacturers having too much inventory and prices may go down even more than they have in the past few Months. I read yesterday that Panasonic just laid off 15,000 employees in Japan. Japan camera makers may feel the pain soon. Will all the DSLR and digital compact cameras manufacturers survive this world crisis? Nikon and Canon could probably lose money for a long time, in hope of capturing the entire market. Sony, who has been losing money every Months with their DSLR lines may opt to get out of the DSLR market all together. Pentax, with their already excellent DSLRs at half the prices of the competitors, may find themselves in a sweet spot. Consumers are forced to shop carefully, and Pentax’s value for the money is well known, and the news is spreading. Pentax is not all that well represented in brick and mortar stores, but local camera stores will soon be something of the past. Young man, the future is on the Internet! I don’t know anyone that owns an Olympus DSLR and I am always surprised to see that they are still in business.

While this may be wishful thinking from my part, I think Pentax will not only survive this economic crisis, they may come out of it smelling like roses.

Thank you for reading,

Yvon Bourque

P.S. It would be interesting to read comments about the economic status in your Country.
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