Future uncertain for Leaf's AFi
Phase One's upcoming acquisition of Leaf's assets could mark a major shift in the digital medium format camera market, Olivier Laurent finds out, as well as the end of the Leaf AFi system
Leaf's only medium format camera system faces an uncertain future after Phase One's acquisition of Leaf's assets.
Last week, Phase One confirmed rumours of an impending wave of consolidation in the medium format camera market by agreeing to form a new company, Leaf Imaging Ltd, which will purchase Leaf's assets and enter into an intellectual property licence with Eastman Kodak Company.
Phase One manufactures digital camera backs and has one medium format camera system - the Phase One 645 - using technology from Mamiya. The latter is majority-owned by Phase One. Leaf produces the Aptus digital back and the AFi camera system.
However, in an exclusive interview with BJP, Henrik O Hakonsson, president and CEO at Phase One says that the new partnership could spell the end of the AFi system. 'The Leaf AFi is a camera system that is currently on hold,' he tells BJP. 'We have to determine if it is commercially viable and we are still not convinced by it. The new company - Leaf Imaging Ltd - has the rights for the Leaf AFi but we are not going to produce it.'
The future of the Leaf AFi system had already been put into question after it was revealed in March that German manu-facturer Franke & Heidecke was forced to enter into admin-istration. Franke & Heidecke owns and develops new products for the legendary Rolleiflex twin-lens camera system, but it also produces a 6x6 format camera body for both Leaf and Sinar - the AFi and the Hy6 respectively (BJP, 18 March).
'The Leaf AFi is still an interesting system,' says Philippe Lefebvre, the sales and marketing director of Kodak in Europe. 'However, it's future will mostly depend on Franke & Heidecke's situation, which should be resolved one way or another at the end of July.'
Reassurance
Peartree, the UK's key Leaf provider, has moved to reassure consumers that the AFi system is still a popular system. 'Currently the future of the AFi is directly linked to the situation with Franke & Heidecke and all we know at this time is there are a number suitors seeking to purchase a controlling interest in the company,' Andy Quiney of Peartree Photo tells BJP. 'However, we must stress that the AFi has been an extremely popular system with strong sales since its launch in the UK over a year ago. It's also proved to be our most popular rental solution namely the AFi II 10, which shoots 56 million pixels, maximising the full use of the fantastic Schneider AF lenses.'
However, Quiney adds: 'One of our specialist areas has been technical cameras and their integration with digital backs and to this end, we will be adding a number of additional demo and rental units from a variety of specialists over the coming months.'
If Franke & Heidecke goes bankrupt, Phase One could still decide to continue producing the AFi system through Mamiya, which it has owned since last April (BJP, 01 April).
In the meantime, Phase One is putting the final touches to its deal to purchase Leaf's assets through the newly-created Leaf Imaging. 'We've tried for a long time to put Phase One and Leaf together,' says Hakonsson. 'There are very good product and technology synergies between the two companies, and there are a lot of very good people on both teams.'
The deal, according to Hakonsson, will allow Phase One to get its hand on some 'very talented' developers. 'We are very interested in the talented people on the research and development team at Leaf. It's very difficult to find people able to ensure the highest image quality in the medium format camera market.'
As part of the deal, Leaf digital camera equipment will continue to be developed in Israel and marketed under the Leaf brand. Dov Kalinski, currently general manager of Leaf, will take on the leading position at the new company Leaf Imaging. Kalinski didn't return calls for comment as BJP went to press.
Greater choice
The tie-up will allow Phase One to gain greater shares of the medium format camera market, which counts Hasselblad and Sinar as its main competitors. However, as a result of the takeover, the company doesn't plan to phase out Leaf's other product - the Aptus II digital camera back. 'There is a strong following for Leaf's camera back. We would rather offer customers greater choice than just one cheaper product,' says Hakonsson.'
Similarly, Phase One will not change Leaf's distributions agreements in countries such as France, the US, Japan and the UK, where Peartree is the principal distributor and service provider. However, in smaller markets, Phase One's sales team will take over Leaf's operations.
Phase One/Leica call it quits
Phase One has confirmed that a new 'strategic partnership' with Leica has been rescinded.
Last October, Leica and Phase One announced during a joint press conference in Cologne, Germany, that they had signed an agreement that would see the two firms share technologies. Under the terms of the partnership, Leica would be able to use Phase One's Capture One photo editing software suite. In return, Leica would help Phase One develop its optics.
It now appears that the deal has been dropped. 'When we went into the details of the deal, there was too much disagreement,' Henrik O. Hakonsson, president and CEO at Phase One tells BJP. 'We decided to put it to rest for the time being. However, we still have an agreement for Leica's smaller cameras where Capture One can be used.'
Phase One has also confirmed that its acquisition of a majority stake in the Japanese camera maker Mamiya will lead to shorter development times. 'Japanese companies are hugely quality focussed, taking their time,' says Hakonsson. 'However, Mamiya is already working a new system of camera and lenses for later this year and you will see an increase in the speed of development.'
