OLYMPUS HALTS THE PRODUCTION OF CAMERAS

The representatives of Olympus have confirmed the company’s intention to leave the market of photography equipment. The company sells the business to Japan Industrial Partners Company, known for having previously acquired Sony's VAIO division.

Being released from the problems related to the production of cameras, Olympus can fully devote itself to developing and creating optical equipment for industry and medicine.

The representatives of company noted that they were able to diversify the business, concentrating on the production of profitable lenses and cameras for professional photographers. However, the boom associated with the proliferation of mobile electronics and, above all, smartphones, has led to a drop in sales and losses incurred by the Japanese company for the past three years.

The experts note that the segment of cameras for the average users has actually died, and the market of expensive photography equipment is going through hard times.

According to rough estimates, the market contracted by 84% in the period from 2010 to 2018 .Many still recall the corruption scandal in which the Olympus brand was involved in 2011-2013. It led to $ 1.7 billion losses, which has affected the company's profitability in recent years.

Will the Olympus brand be successful after becoming a part of JIP Company? The fact is that the company itself hopes to accelerate the business, making it more flexible. However, given the experience of VAIO, which has not showed any significant results after the transition, the experts are rather skeptical about the deal. Whether the new owner will support the consumers who have purchased Olympus cameras is a big question.

We should recall that Olympus has existed since 1919. It was founded as an enterprise for the production of thermometers, but then gradually reoriented to the creation of microscopes and medical optics. Cameras became mass-produced in 1936. The experts note that there are only two types of cameras in the world that support the Micro Four Thirds format (the third most popular). The company relied on this format in the process of production of devices with interchangeable lenses. Along with Olympus, Panasonic which has its own line of cameras that attract modern videographers supported the format.    

The selling transaction might be closed in September 2020.

The company plans to sell a division that previously produced lenses and cameras, as well as binoculars and voice recorders. At the same time, the company itself has never suspended the production of microscopes. Olympus has become one of the leaders in the production of endoscopes in recent years.