Why else would they spend more?
To make more money.
stsva Cream of the Crop More info | Oct 05, 2011 13:55 | #541 rhys216 wrote in post #13209303 Why else would they spend more? To make more money. Some Canon stuff and a little bit of Yongnuo.
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LosPollosHermanos Mostly Lurking 10 posts Joined Oct 2011 Location: Fourteen locations throughout the southwest More info | Oct 05, 2011 13:56 | #542 stsva wrote in post #13209294 That wasn't the assumption I was questioning; the assumption in question was that camera manufacturers intentionally spend more to produce better IQ. They have little choice when it comes to manufacturing FF sensors from what I understand.
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rhys216 Goldmember 1,814 posts Joined Mar 2010 Location: Oxfordshire More info | Oct 05, 2011 14:02 | #543 Permanent banstsva wrote in post #13209321 To make more money. Not really as it just increases their costs. I'm they would actually rather use crop sensors and just charge more. Nikon obviously wanted to do this, otherwise they wouldn't have taken so long to release a FF camera. Their hand was likely forced by Canon swiping market share with their FF offerings.
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stsva Cream of the Crop More info | Oct 05, 2011 14:08 | #544 rhys216 wrote in post #13209350 Not really as it just increases their costs. I'm they would actually rather use crop sensors and just charge more. Nikon obviously wanted to do this, otherwise they wouldn't have taken so long to release a FF camera. Their hand was likely forced by Canon swiping market share with their FF offerings. It would be interesting to have insight into the relative profit margins for full frame and crop camera lines, but I don't think we're likely to get that. Canon seems to have two primary business goals - to outsell Nikon and other competitors, and to keep sales of higher end cameras up by limiting the feature sets of lower end cameras. The second goal seems to imply that there is a significant profit margin advantage for their higher end cameras, but that's speculation without more information. Note that neither goal necessarily has anything to do with full frame versus crop, demonstrated by Canon having both higher end and lower end cameras in both the full frame and crop lines. I suspect that, to Canon, full frame versus crop is largely irrelevant with regard to their business model and profit structure. Some Canon stuff and a little bit of Yongnuo.
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Oct 05, 2011 14:13 | #545 stsva wrote in post #13209373 It would be interesting to have insight into the relative profit margins for full frame and crop camera lines, but I don't think we're likely to get that. Canon seems to have two primary business goals - to outsell Nikon, and to keep sales of higher end cameras up by limiting the feature sets of lower end cameras. Note that neither goal necessarily has anything to do with full frame versus crop, demonstrated by Canon having both higher end and lower end cameras in both the full frame and crop lines. I suspect that, to Canon, full frame versus crop is largely irrelevant with regard to their business model. I would be willing to bet there is a much higher profit margin on the 5Dmk2 compared to any of the APS-C sensored models currently being produced. _
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wfarrell4 Goldmember 2,551 posts Likes: 1 Joined Jun 2011 Location: NJ More info | Oct 05, 2011 14:17 | #546 Permanent bandavidc502 wrote in post #13209396 I would be willing to bet there is a much higher profit margin on the 5Dmk2 compared to any of the APS-C sensored models currently being produced. Think about it..... The 5Dmk2 has been dropped 500 bucks in price over the last couple weeks. 500 will almost buy a T2i body. My guess is they have at least another 750 dollars to play with before they start breaking even < total guess on my part, but it's just a feeling. It also could be completely the opposite like many car brands that offer a wide range of automobiles. They don;t make money on the high end stuff - they make it on the cheap stuff. Will: flickr
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Oct 05, 2011 14:23 | #547 eskimochaos wrote in post #13209430 It also could be completely the opposite like many car brands that offer a wide range of automobiles. They don;t make money on the high end stuff - they make it on the cheap stuff. Lexus, Toyota, BMW, Mercedes, and Audi come to mind. I do know about Chevy, Ford and Chrysler vehicles.... They make 2, 3 even 4 times as much profit on the high end vehicles, and that goes especially for the SUV models. _
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wfarrell4 Goldmember 2,551 posts Likes: 1 Joined Jun 2011 Location: NJ More info | Oct 05, 2011 14:25 | #548 Permanent bandavidc502 wrote in post #13209447 I do know about Chevy, Ford and Chrysler vehicles.... They make 2, 3 even 4 times as much profit on the high end vehicles, and that goes especially for the SUV models. They're really not competitors in the markets of the manufacturers that I listed. IMO. Will: flickr
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rhys216 Goldmember 1,814 posts Joined Mar 2010 Location: Oxfordshire More info | Oct 05, 2011 14:25 | #549 Permanent bandavidc502 wrote in post #13209396 I would be willing to bet there is a much higher profit margin on the 5Dmk2 compared to any of the APS-C sensored models currently being produced. Think about it..... The 5Dmk2 has been dropped 500 bucks in price over the last couple weeks. 500 will almost buy a T2i body. My guess is they have at least another 750 dollars to play with before they start breaking even < total guess on my part, but it's just a feeling. Well it mostly depends on how much the sensors cost.
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wfarrell4 Goldmember 2,551 posts Likes: 1 Joined Jun 2011 Location: NJ More info | Oct 05, 2011 14:26 | #550 Permanent banrhys216 wrote in post #13209458 Well it mostly depends on how much the sensors cost. FF sensor costs 2.5x more than a 1.6x sensor, if every die candidate is successful. However yields decrease exponentially as you increase die sizes, so I'm guessing a FF sensor alone probably cost's around 3-4x more than 1.6x chips. Then you have a little extra cost in terms of larger shutters and viewfinders etc. Sorry, I agree with you on most points but do you have any data to back it up? Will: flickr
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rhys216 Goldmember 1,814 posts Joined Mar 2010 Location: Oxfordshire More info | Oct 05, 2011 14:30 | #551 Permanent ban^^^
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stsva Cream of the Crop More info | Oct 05, 2011 14:30 | #552 Like virtually everything else under discussion in this thread, everything is relative. In this case, it would be the sales price relative to the cost of production. Since we don't know the cost of production for any of Canon's cameras, we can't calculate the profit margin, and therefore have no way of knowing whether "better quality" is intrinsically more expensive or whether Canon is charging more for better quality because they can, not that they must to cover the costs of production. I'm sure some of the higher price for full frame is attributable to higher production costs, but that doesn't explain, for example, the very large difference in list price between a 5Dii and a 1DSiii. Some Canon stuff and a little bit of Yongnuo.
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wfarrell4 Goldmember 2,551 posts Likes: 1 Joined Jun 2011 Location: NJ More info | Oct 05, 2011 14:34 | #553 Permanent banThis thread is really going down the pooper. Will: flickr
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stsva Cream of the Crop More info | Oct 05, 2011 14:37 | #554 eskimochaos wrote in post #13209514 This thread is really going down the pooper. Au contraire - it's just now starting to get interesting. We're getting into the money side now! Some Canon stuff and a little bit of Yongnuo.
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rhys216 Goldmember 1,814 posts Joined Mar 2010 Location: Oxfordshire More info | Oct 05, 2011 14:40 | #555 Permanent baneskimochaos wrote in post #13209464 Sorry, I agree with you on most points but do you have any data to back it up? Looks like I underestimated.
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