In its results for the 2022/23 financial year, Leica sales revenue increased for the third year in succession and forecasts promising future development. Revenue of Leica Camera Group grew nine percent (€485m compared with last year’s €444m) and the company achieved a record high.
Matthias Harsch, CEO of Leica Camera AG: “The Leica brand has always stood for optical expertise ‘made in Germany’ and for technical innovations, most recently in the field of Content Authenticity Technology. With the market-launch of the Leica M11-P, Leica sets an example in the battle against fake photos and AI-generated images. As the world’s first camera with ‘Content Credentials’, which guarantee the authenticity of digital images, this model once again bears witness to Leica’s pioneering spirit. Thanks to increased engagement in forward-looking fields of technology, an innovative product portfolio and the consistent expansion of the global sales network, we now also expect positive developments in our sales revenues for the current financial year.”
Leica sales revenue: M11 boost
According to Leica, the success of the M11 was one of the most significant factors powering growth. The M11-P and the M11 Monochrom created further milestones in the development of the iconic rangefinder series, which has been the company’s flagship product since the introduction of the M3 in 1954. In 2024, the company will celebrate the 70th anniversary of the M.
In addition to this, the company has seen strong demand for the Leica Q3 in its third generation and notes positive feedback on the cameras and lenses in the mirrorless SL system.
Leica continues to see positive developments in online sales and systematic expansion of the Leica global sales and retail network. With the opening of new Leica Stores and their associated Leica Galleries in Paris, Mexico City, Amsterdam, and New York in 2023 and 2024, the company has further consolidated its business in strategically important premium markets. Leica now operates more than a hundred single brand stores, with sales rising by 13 percent to €16m in year-on-year.
According to the company, the Leica Community is being constantly expanded with a diverse range of activities for the promotion of the art of photography, which are an integral part of Leica brand culture. The worldwide Leica Galleries and Akademies make a considerable contribution to this: “Currently with 27 Leica Galleries, the company operates the world’s largest network of galleries, which is constantly being expanded. Together with the World of Leica in the Leitz-Park Wetzlar, the Leica Group headquarters complex, these dedicated spaces transform the fascination of photography into a vibrant experience of 21st-century art”.
Leica sales revenue: New segments
The company expects that future revenue development will be assisted by the expansion of new business segments. In addition to the strategic partnership with smartphone manufacturer Xiaomi in the Mobile Imaging segment, the focus in the Mobile Business segment is on the further development of the Leitz Phone, which is currently marketed exclusively in Japan. With the market launch of the first own Cinema TV (Leica Cine 1), Leica has made its debut in the Home Cinema segment and enables “home cinema experiences in brilliant Leica image quality”.
During 2023, the Leica Eyecare subsidiary constructed a state-of-the-art ophthalmic lens production facility. Developed and produced in Germany, with one of the most modern manufacturing technologies in Europe, “Made by Leica” ophthalmic lenses are creating a new experience in Leica premium quality.
Since 2023, the company has been offering a collection of luxury watches in collaboration with its subsidiary Ernst Leitz Werkstätten. In 2023, the Leica added the ZM Monochrom Edition, the ZM 11 watch models and a ZM 1 Gold Limited Edition to the collection. In common with all Leica products, the watches represent what the company stands for: “innovation, the finest arts of precision engineering and craftsmanship, paired with a quality, precision and iconic design that led to products of extraordinary quality”.
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After being on the market now for 9 years is “positive feedback” sufficient for the Leica SL system? Leica clearly does not want to use terms like success (M) or strong demand (Q) for the Leica SL system. To me personally it seems to indicate that Leica is not really satisfied with SL sales…
I think considering the number of promotions to offer discount trade ins or discount bundles, Leica is probably not happy. You are artificially boosting volume at the expense of margin which reduces the amount you have to spend on the next generation SL.
The criticisms are repetitive: the technology is at least a generation older than that on rivals like Sony and Nikon, and the weight of the cameras is often cited as an inhibitor to purchase. The only way to overcome those criticisms is to discount, which doesn’t fundamentally address those issues, just kicks them down the road a bit further.
I also noted this reticence in relation to the SL. The superlatives were left to the M and Q ranges. We may be misinterpreting things, but I do wonder.