philber Offline Upload & Sell: Off
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p.171 #9 · Canon 5D Mark II master thread | |
I am familiar with the electronics industry from the inside. It is unusual in one key area: costs and prices keep falling. Each new generation of chips delivers more for less, or much more for the same money, than the previous one.
So replacing an aging product does not follow the same economics as, say, in the car industry. For example in the 5D2 there is a new LCD with 900.000+ pixels, Vs the smaller LCD in the 5D. Because of the 3-year difference and the way 3" LCD prices fell during those 3 years, Canon is paying significantly less for the new, better one, than for the old one.
The other issue that drives product replacement is the availability of parts. When 5D was designed, Canon expected to make "so many" of them over its lifecycle, and tooled up (and its subcontractors) accordingly. If either volume or life cycle extend beyond what was planned, and tools need to be replaced, then all bets are off, cost-wise. Because it could easily be that they just cannot be duplicated simply because the manufacturing process has been improved since, and the old one is no longer supported. One example of that would be memory for the buffer. The 5D has memory with 3-year old performance (clock speed, density). The odds are it is no longer produced. And you cannot simplistically "just" replace it with a faster, more dense memory on the assumption that the better chip can do everything the lesser chip can, it doesn't work that way. And even if it did, you would have to test the change extensively, and document it throughout the service chain all over the world with parts lists, AVLs, blueprints etc. Not cheap at all, and eating right into the promised land of extra profits from larger-than-expected volumes
These are just 2 examples of why extending a product's lifecycle is not the "easy", lazy decision that it seems to be. Beyond a few months of tweaking, it needs a total rethink of the game plan.
So when you keep in mind that the 5D is 3 years old, and how few consumer products from the electronics industry (cell phones, computers, TV sets...) actually last more than even one year on dealer shelves before being replaced by a later, newer, spiffier model, you get an idea of how much of a relief it must have been for Canon to move on from 5D on the manufacturing and cost sides.
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