Weakening of Yen has caused a drop in prices of camera?
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since some folks have complained that this thread becoming too non-photography related. Moving this discussion to Kopitiam.
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Does a weakening of yen will cause a drop in price of cameras (assuming Japan made)?
If the majority of the value of the parts and assembly are from Japan, then theoretically, prices have a stronger potential to drop in the export market.
On the other hand, if parts are sourced from other countries (especially those whose currency has appreciated against the yen), or even assembled there, then the cost of parts to the Japanese company has risen actually and may even cost more than before to manufacture.
The 2nd scenario is the current state of pricing of most electronic goods. This the simplistic straightforward answer from an economist point of view.
There are of course many factors that will affect, like whether there was hedging done, holdings in USD and JPY, current stock levels, etc
Of course, in real life, whether prices move, also depend on the contractual agreement and the discretion of the agent since cameras are not goods of necessity and neither are there hordes of competitors and their consumers are already brand loyalists (at least most in the DSLR segment).
The question of pricing is on the local agent of whether price movements serve their interests first. Big movement is pricing is bad for retailers who already has existing stock at old prices unless the agent gives some form of compensation. Hence you notice some retailers do not hold certain brands, mainly because margins are low or the agent keeps lowering prices without adequate compensation.
So will prices come down? I won't bet on it that it will be significant but I will not be surprised if bundled purchase and attractive purchase with purchase offers are made, mainly to rid of slow-moving model of lens or overstocked lens or because new models are coming.
If the majority of the value of the parts and assembly are from Japan, then theoretically, prices have a stronger potential to drop in the export market.
On the other hand, if parts are sourced from other countries (especially those whose currency has appreciated against the yen), or even assembled there, then the cost of parts to the Japanese company has risen actually and may even cost more than before to manufacture.
The 2nd scenario is the current state of pricing of most electronic goods. This the simplistic straightforward answer from an economist point of view.
There are of course many factors that will affect, like whether there was hedging done, holdings in USD and JPY, current stock levels, etc
Of course, in real life, whether prices move, also depend on the contractual agreement and the discretion of the agent since cameras are not goods of necessity and neither are there hordes of competitors and their consumers are already brand loyalists (at least most in the DSLR segment).
The question of pricing is on the local agent of whether price movements serve their interests first. Big movement is pricing is bad for retailers who already has existing stock at old prices unless the agent gives some form of compensation. Hence you notice some retailers do not hold certain brands, mainly because margins are low or the agent keeps lowering prices without adequate compensation.
So will prices come down? I won't bet on it that it will be significant but I will not be surprised if bundled purchase and attractive purchase with purchase offers are made, mainly to rid of slow-moving model of lens or overstocked lens or because new models are coming.
LoL.
i think i did point out a basic form of what you mentioned in one of the first few replies.
but your's are more eloquent and professional. i'm also quite interested in economics, despite not having much of an education.
2 years ago I went when $1 bought 65yen
now $1 can buy almost 82yen
whatever whatever..... I'm planning a long Japan holiday this year !!
now $1 can buy almost 82yen
whatever whatever..... I'm planning a long Japan holiday this year !!
The weakening of the Yen will help to improve the Japanese economy in the mid term.
In the past decade, due to the strengthening of the Yen, Japanese products became uncompetitive and many companies closed down. Many chose to go oversea for their manufacturing. Many high-tech operations actually moved to Taiwan and Korea.
Now that the Yen has weaken, many will move back these operations back to Japan, and we should be able to see many quality products from Japan. I am sure the Yen will still go south for a while.
In the past decade, due to the strengthening of the Yen, Japanese products became uncompetitive and many companies closed down. Many chose to go oversea for their manufacturing. Many high-tech operations actually moved to Taiwan and Korea.
Now that the Yen has weaken, many will move back these operations back to Japan, and we should be able to see many quality products from Japan. I am sure the Yen will still go south for a while.
nopeeeeeeeeeeee
Analyst reports Japanese conglomerates repatriating $ to JPY to book in FX gains. This money doesn't go anywhere and gets stuck.
USDJPY will continue its direction but BOJ key board members say it's "unsustainable"... BOJ does not have a huge warchest to keep deflating JPY.
Basically BOJ is almost directly giving JPY to conglomerates...
anyway those who are doing Nikkei225 vs USDJPY will notice a very strong correlation between N225 price and USDJPY ... just a rant... meow
I support my local SG stores... even IF you save a $$$ elsewhere !
As for high prices, look at al Apple products, all Leica, The Sony RX1 even... yes some dealers try to price fix.... many rich people here so why not try to make as much $$$ as you can... hahahaha
( in Australia price fixing is illegal !! )
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一落千丈
Oh well, wait and see the show. It has rebounded today...a little bit.
BBC TV news says it wiped US$300 Billion in one day.
ASIA MARKETS: Japan Stocks Plunge Back Into Losses | Fox Business
Japan stocks plunge on weak China data - May. 23, 2013
Perhaps 19 Oct 1987 had similar omens?
[photo credit: money.cnn.com]
Oh well, wait and see the show. It has rebounded today...a little bit.
BBC TV news says it wiped US$300 Billion in one day.
ASIA MARKETS: Japan Stocks Plunge Back Into Losses | Fox Business
Japan stocks plunge on weak China data - May. 23, 2013
Perhaps 19 Oct 1987 had similar omens?
[photo credit: money.cnn.com]
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1 week later another drop (about 30 May 2013). Monitor this.
Is the Abenomics honeymoon over?
[Image credit: Money.CNN.Com]
Is the Abenomics honeymoon over?
[Image credit: Money.CNN.Com]
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Asia In The Red: Nikkei Drop Continues – Down 2.5%, -350 Points. European Futures Crashing!
http://www.charles-stanley.co.uk/cslive/2013/06/nikkei-crashes-off-nearly-4-in-volatile-trade-overnight-all-eyes-on-london/
Nikkei down 3.83% Yen Strengthening Again below 100 | Shenandoah
Image credit: (charts from YahooFinance & JohnGalt)
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13 June 2013 - today.
Nikkei Plunges 6.4%; Re-Enters Bear Market
It is a massacre.
Abenomics falling apart.
Graphic credit: CNNMoney
Nikkei Plunges 6.4%; Re-Enters Bear Market
It is a massacre.
Abenomics falling apart.
Graphic credit: CNNMoney
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Japanese Yen since then has moved back up strongly from 105 a couple of weeks back to 95 against the US Dollar ..... so how ? Should we expect Japanese camera prices to now rise?
very wild swing the past week. prices might not rise, especially for cameras MIT. . . made in Taiwan or Thailand.
13 June 2013 - today.
Nikkei Plunges 6.4%; Re-Enters Bear Market
It is a massacre.
Abenomics falling apart.
Graphic credit: CNNMoney
did you even read the entire report, or just read the title?
people always expect that a fall means doom.
but economics is more complex than that.
