Pentax sold to Ricoh: Does it make sense?

pentax645dnew

The Pentax 645D medium format camera

What impact will Ricoh's takeover of Pentax have on both companies' product ranges. Our expert, Richard Kilpatrick, provides some answers.

Author: Olivier Laurent

Earlier today, Ricoh announced that it was to acquire Pentax in a transaction valued at more than £77m. With this deal, Ricoh expects to boost its position in the interchangeable lens market - read our full report here.

Ricoh has a three-step plan to benefit from its acquisition of Pentax. First, the firm plans to "enhance its digital camera businesses (especially the interchangeable lens camera market which is expected to grow).

Second, it expects to "create value-added businesses for taken photographs (creation and development of value-added services that encourage seeing, storing and refinishing photographs and utilize photographs as communication tools)."

Finally, it is also looking to "expand to other fields (study of entry into the image archiving business using medium-format digital cameras and enhancement of security-related products)."

But while Pentax and Ricoh remain tight-lipped on how they will achieve these goal, BJP's technical expert Richard Kilpatrick takes a look at the current state of both manufacturers - asking whether the deal makes sense.

"In a move that seems almost opposite to Sony's acquisition of the Minolta camera business from Konica-Minolta in 2006, copier giant Ricoh's purchase of Pentax from optical firm Hoya makes little sense on the surface," he says. "Both firms have a strong range of compacts and both firms have met with limited success when pushing upmarket. The K-series DSLRs enjoy their success at the entry-level end of the market, whilst the 645D seems to have resulted in a camera with surprisingly good optics for the segment and price, let down by a consumer-market derived image pipeline."

He adds: "Pentax's Q system is almost a direct competitor to the GXR - albeit as a more logical solution than the expensive Ricoh, it nevertheless misses the GXR's unique selling points of a larger sensor option and sealed modules. Whilst Ricoh's intent appears to be to use the Pentax brand's recognition in the wider marketplace, Ricoh's brand equity at the high-end of that market is far from poor."

But, Pentax could benefit from Ricoh's interest for the medium format market, says Kilpatrick. "Ricoh is considerably larger than Hoya and should be in a position to invest heavily in the technology and pipeline behind the 40-megapixel sensor, particularly if the stated intention of pursing the 'archival image' market is to bear fruit. A [new version of the] 645D with better raw processing and 16-bit capture would be an intimidating product for the opposition at both the entry level medium format camera and high-end DSLR segments, and Ricoh has been quick to adopt new secondary technologies like SDXC and higher resolution displays."

As for Pentax's new Q system, from a commercial point of view, "[it's] a shortcut into compacts with interchangeable lenses; Ricoh's past history with getting excellent raw output from compact sensors may benefit Pentax," says Kilpatrick. "At a reported £77m cost, this could turn out to be a very expensive shortcut for Ricoh if their aim was to push their own brand to the forefront. With careful brand management evading a seismic shift in the marketplace, this partnership should address the refinements needed to push each firms' products to the top of their market segments."

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Comments

16bit myth

technical expert apparently does not know that well capacity + noise does not warrant anything more than 14 bits to encode the electrons even for high end P1 backs (other than marketing of course)... anything more than 14 bits will be encoding noise and as well you can do w/ dithering in raw conversion/postprocessing...

Posted by: DP on 01 Jul 2011 at 14:17

Pentax DSLRs NOT limited to entry level

The comment in your article... "The K-series DSLRs enjoy their success at the entry-level end of the market" is a bit of a simplification.

The Pentax K-5 has compared very favorably in multiple comparisons to the top of the line "mid-range" APS-C cameras from both Canon and Nikon.

Frankly the main thing that has prevented professional adoption of most of Pentax's top-end DSLRs (recently) has been Hoya's lack of interest and commitment to the camera division and especially to the back-end support that a professional photographer often requires, such as priority repairs, loaner gear and the other components of a professional support network.

Added to that of course is the fact that Hoya had NO MARKETING STRATEGY for Pentax, at least in the U.S.. And they've squandered the good will of countless photographers who have been proudly shooting Pentax for 40 and 50 years or more.

There is a great deal of hope in the Pentax user community that this will be a good thing for the Pentax brand!

Mike Riley
Virginia, USA

Posted by: MRRiley on 01 Jul 2011 at 15:38

Buying Spree

If Ricoh are on a buying spree, why don't they buy the Contax brand and re-brnad the large format cameras as Contax. That would help fix the "image" problem in the professional market.

Posted by: Paul Reading on 01 Jul 2011 at 15:45

Marketing is important ;)

Your assumptions are somewhat dated. FWC has increased dramatically - that 16-bit capture is only 65,536 levels.

Somewhat lower than the theoretical and practical maximum capacity of a typical medium format sensor, many modern high resolution DSLRs are approaching it.

I don't disagree that even 10-bits per channel is enough to capture or display apparently smooth gradations for most applications, but the amount of optimisation needed in the pipeline would increase costs dramatically...

Most of these cameras are based around off the shelf processors and whilst improving, are still inefficient - and it's much easier to clean things up later on in the process (it's also easier to make improvements at that stage and apply them later, either via firmware or new raw processing software).

Posted by: RIchard on 01 Jul 2011 at 15:47

Brevity

Mike: The K-5 is a very good camera, it still competes at the higher end of the "consumer" marketplace however.

There are so many tangents you can disappear down with these things; I think my comment is fair. Technically and critically the K-5 is probably the best offering Pentax has put forward in the DSLR marketplace, it sits very well where its positioned; overall it's not changed their commercial position drastically.

Paul: I'd love to see Contax come back (as would many, I'm sure) but I don't think the Contax users lamented the loss of the brand, but the technology - which really would have very little value now overall.

Posted by: Richard on 01 Jul 2011 at 15:59

Pentax 645D bashing

The 14 -16 bit still is Marketing bluff.

Current professional printer are still limited to 8bits per color channel and professional screen ae only starting with 10bit compatibility. The 14/16 bits are only usefull for tonal ajustments and digitalisation noise. The gain of 16bits over 14 is still limited in that context, even if the sensors were noiseless. So this is really a marketing measurbation.

The Pentax has against itself a few things can push pro to other brands:
- Lower pixel count (40Mpx vs up to 80)
- Lower sync speed (for studio works)
- Lower DR (compared to the latest Dalsa sensors)
- No removable back (for technical camera mounting, backup)
- No established support network

But they have a lot of advantages:
- Best in class AF,
- Weather sealing
- Best in class ergonomy
- Size and weight
- Price
- Best in class batterie life
- No removable back (for those who prefer no dust)

Saying that the 14/16 difference is the main reason for pro MF user not to rush to Pentax is not really relevant IMO.

So far pro repports of the 645D are very positive, all legacy 645 film glass are now available (apparently new batches are produced in Vietnam) and the first reports on the 25mm/f4 are very positive.

Pentax is actually known to have a very good processing knwoledge for their APSC line, so I don't think Ricoh has anything to add in value there.

Ricoh has a very strong, if quirky, compact line. While Pentax has a weak compact line and a stronger APSC and MF line.

The only that Pentax is missing at the moment would be a 35mm "FF" camera. But having such would place them by far as the most complete camera maker of the place (neither Canon or Nikon are doing Medium Format or mirrorless)

So what?
Ricoh is a considerably bigger company as a whole, but is smaller in the camera segment. Their dedication to produce quirky and relevant compact cameras shows that they are not buying Pentax just to squize the milk cow.

When Hoya bought Pentax, the first "Hoya" camera was the k-m more than a year after the buyout. So I don't think we will see the vision of Ricoh before the end of 2012. In the mean time we will get a replacement for the K-5 and the K-r, we will see if the Q is anywhere near a sucess (and at which price) We will also more likely see also more lenses for the Q and the 645D.

What will Ricoh do in the future, we don't know (and maybe Ricoh as well don't knwo exactly) A GX-r module with Q-mount? All compacts under Ricoh brand, all higher end under Pentax? An M-mount rangefinder based on K-5 sensor and electronics? A FF camera? (provided they can source a sensor) An APSC compact a la Leica X1/Fuji X100? Or rebrand everything under Ricoh, screw the SLR line with late release of outdated poorly made camera and end the carnage in 5 years time?

The Internet is a great place in the sense that you can go back an read how wrong they were a few year ago. A buyout of a company with such a strong background as Pentax is delicate indeed.

Posted by: G. Helary on 01 Jul 2011 at 17:47

sense or sensors

It costs to produce full-frame sensors, and it costs to produce excellent new lenses and Pentax wanted both but did not have the money or backing from their owners- because if they had it Hoya would not have sold them out.

This mutually advantageous marriage of convenience has been made in a country where at least they know how to make cameras lenses and sensors.

As an englishman I can see little to criticize, so why do so?

If only photography was as evolved as its technologies- now, that IS a valid subject.

Posted by: Peter Harrap on 02 Jul 2011 at 00:55

Gear cannot be "professional"

Mike Riley is spot on. There is very little limiting about the Pentax K-5 for professional use. However the complete lack of marketing presence (to build mind share) and a pro support network is what really holds the brand back. If Ricoh can invest sufficiently to change that, it would be a significant step forward for the brand.

Posted by: Robin Parmar on 02 Jul 2011 at 14:13

Is the question headline answered in the article's body?

Is the question headline answered in the article's body?
I don't think so. The very intriguing headline made me read eagerly the article and when I finished it, I just had a feeling of disappointment, because I used my time not for a bold business decision analyze, but a journalistic bla-bla with not much content.

Isn't a little bit too bold to postulate that Pentax Q is "a direct competitor to the GXR", when one has a sensor 1/8th in surface of the other?

Posted by: bohomondo on 14 Jul 2011 at 10:23

GXR & Q - different routes...

The GXR's sensor area depends on the module attached; the majority of sales seem to be focused on the compact packages with P10 or S10.

Very good packages for a compact, admittedly, but crucially available at a lower cost as a complete camera.

If the reason for the GXR is to provide flexibility for compact users, the Q is a very strong competitor, albeit one offering a different route to that solution. The Q's optics may be much better than the GXR compact sensor modules can offer (Ricoh's are good though so I wouldn't want to assume that outright); the Q will almost certainly be cheaper.

The GXR's A12 competition is as much the Sigma DP series, or the Fuji X100, given that the DP costs less (street prices) than the APS modules and the X100 is only slightly more for a completely different class and quality of camera.

To be honest I've always felt the GXR made less sense with the A12 modules at their SRP, they have too many compromises for the price and treating it as an interchangeable lens system the modules are quite bulky - if the M-mount module goes ahead though, it may put a very different spin on the camera's abilities particularly if they do something clever like losing the AA filter, having an electronic coupling for the rangefinder cam (whilst still offering live view, a clever overlaid rangefinder would be lovely) and maybe trying to optimise performance with Voigtländer's lower-cost lenses. Instant access to the 15mm without the "can't see what I'm shooting" of a rangefinder without OVF.

Posted by: Richard on 02 Aug 2011 at 10:06

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