Leica's new baby - Part 3.

To ensure they could bring the M8 to market with some confidence, Leica head hunted a new digital development director. His previous job was with Nokia, so that ought to tell you something about what Leica Camera Ag thought they didn't know about digital technology before his arrival. It may also account in part for the sudden increase in digital camera product range being launched at photokina 2006.
There have been reports posted elswhere of the M8 being manufactured and assembled in Portugal. According to information supplied to me by Leica Camera Ag, JENOPTIK Laser, Optik, Systeme GmbH of Germany manufactures many of the electronic components - not the Kodak ISS CCD sensor - which are supplied as modules before shipping to Solms where they are apparently assembled in a new clean room. By the time these parts arrive in Solms, assembly stages to reach a finished M8 are minimised. I had the impression - so it's NOT FACT - from my meeting with the Leica rep, that Jenoptik also did some work on the digital capture and signal processing software for the M8. (see Jenoptik press release more Efficient Digital Capture and Analyses of 21/04/2005)
The nature of electronic component assembly being what it is, room for error exists in the process. Tales of sloppy CCD sensor installation in some consumer level Dslrs are common and now we are seeing reports of similar problems affecting more expensive devices. Strict quality control at every assembly stage is the only method of avoiding customer dissatisfaction, but only the passing of time will tell us where Leica and its OEM suppliers are at with this potential problem. The recently issued Jenoptik press release concerning Leica Camera Ag's 51% buy-in stake gives a clue as to where this new partnership might go, viz;
"Jenoptik already cooperates with Leica Camera AG in some development projects. High growth rates in the digital imaging market." - see press release of 25/09/06 headed JENOPTIK LASER, OPTIK, SYSTEME GMBH SELLS 51% STAKE TO LEICA CAMERA AG - SINAR INCLUDED IN THE DEAL.for more detail.
What Leica Camera Ag appear to be doing here is attempting to consolidate their fragile stake in the photo equipment market place. I have no idea what the partnership deal with Panasonic in Japan is, but on the surface at least, while Panasonic may continue to manufacture Leica designed and licenced lenses for their own range of digital video and Lumix branded still cameras at their Yamagata plant, there is no guarantee Leica Camera Ag will continue to take Panasonic's rebadged compact cameras for their own product list. Jenoptik already makes a range of compact digital cameras and with the technology and manufacturing facilities now available to Leica in their own country for a more 'home grown' product, it would make sense for them to explore that route; no language problems, preferred in-house product design, lower overheads and all the other benefits which accrue to having your other shop up the road.
For more on the Leica M8 digital rangefinder, click on the following links;
http://ajaxnetphoto.blogspot.com/2006/09/leicas-new-baby-m8-part-2.html
http://ajaxnetphoto.blogspot.com/2006/09/leicas-new-baby-m8.html
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