The Leica Transformation – How a Camera Icon Went From Crisis to €596M by Killing the Rangefinder

In 2005, Leica Digital camera AG was just about bancrupt after catastrophically lacking the digital pictures revolution. Twenty years later, the German producer reviews report income of €596 million for fiscal 2024/25, pushed by aggressive diversification into smartphone partnerships, projectors, and different optical merchandise. The Leica transformation culminates this month with the M EV1, Leica’s first M-series digicam to switch the long-lasting optical rangefinder with an digital viewfinder – a call sparking fierce debate about whether or not the 150-year-old model has compromised its soul to outlive.This text is predicated on reporting by German enterprise publication supervisor magazin, which detailed each Leica’s company transformation and the controversial M EV1 announcement in its November 2025 challenge.The M EV1 represents a watershed second for a corporation that almost ceased to exist in 2005. Austrian entrepreneur Andreas Kaufmann, who rescued Leica by way of his household holding firm ACM when the model confronted insolvency, has spent 20 years proving that calculated risk-taking beats clinging to custom. The brand new digicam eliminates the rangefinder that has outlined M-series operation because the Nineteen Fifties – a call that might have been unthinkable throughout Leica’s darkest days however now exemplifies the corporate’s willingness to problem sacred floor somewhat than relaxation on historic laurels.The brand new Leica M EV1. Picture credit score: LeicaThe 2005 disaster that almost killed an iconIn 2005, Leica stood on the point of chapter. The corporate had essentially misjudged the digital pictures revolution, watching rivals quickly develop digital techniques whereas Leica remained dedicated to analog cameras. The model that had outlined 35mm pictures and captured defining moments of the twentieth century all of the sudden confronted irrelevance and insolvency.Kaufmann stepped in when Hermès was the bulk shareholder. “Leica was just about bancrupt,” he remembers to supervisor magazin. Regardless of the dire circumstances, he invested, introduced in an interim CEO, and oversaw painful restructuring. “The corporate needed to be financially secure earlier than we might take into consideration additional improvement,” he defined. That monetary stabilization took precedence over product innovation for a number of years. Survival first, innovation later.Dr. Andreas Kaufmann, chairman of the supervisory board at Leica. Picture credit score: Leica Digital camera AGThe turnaround proved remarkably profitable. Leica CEO Matthias Harsch introduced in September 2025 that the corporate generated €596 million in income with 2,400 workers worldwide, representing 7.6 % year-over-year progress. The trajectory has been constant: from €372 million in fiscal 2020/21 to just about €600 million 4 years later. “Leica Digital camera AG has undergone a change over the past 20 years from a conventional digicam producer with analog DNA to a digital system supplier for high-quality pictures, cell imaging, sports activities optics, and good projection,” Harsch said.The smartphone gamble that modified everythingWhen Apple launched the camera-equipped iPhone in 2007 – with Steve Jobs famously evaluating the iPhone 4’s design to a “stunning outdated Leica digicam” – {industry} observers predicted doom for devoted digicam producers. Kaufmann noticed it in another way. Reasonably than viewing smartphones as existential threats, he acknowledged them as alternatives to develop Leica’s model attain and achieve cell {industry} expertise.Beginning in 2008, Leica pursued smartphone partnerships. After collaborating with Huawei from 2016-2022 (ending attributable to U.S. sanctions), Leica introduced a strategic partnership with Chinese language producer Xiaomi in Might 2022. The collaboration goes far past easy branding or emblem licensing. Xiaomi and Leica established the Xiaomi x Leica Optical Institute at Xiaomi’s Beijing campus – a 2,644-square-meter facility devoted to optical analysis masking lens design, optical movies, precision machining, and supplies improvement.4 smartphone collection have launched since 2022. The Xiaomi 14 Extremely includes a quad-camera system with focal lengths from 12mm to 120mm utilizing Leica Summilux lenses and variable aperture (f/1.8-f/4.0) on the principle digicam. Customers choose between “Leica Genuine Look” (pure shade copy with attribute vignetting) and “Leica Vibrant Look” (extra vivid colours collectively developed). The Xiaomi 15 Extremely introduced in early 2025 pushes additional with a 200MP ultra-telephoto digicam. Harsch has made a number of appearances at Xiaomi launches, positioning cell imaging as “a key driver of Leica Digital camera AG’s sustained, worthwhile progress.”The Xiamoi 15 ULTRA options Leica Summilux lenses. That is the “pictures equipment”. Picture credit score: XiaomiLeica additionally partnered with Sharp for the Leitz Cellphone collection unique to Japan, that includes Leica optics and design parts paying homage to conventional M cameras. “Such partnerships are vital as a result of the smartphone {industry} works fully in another way than ours,” Kaufmann explains. “Every little thing is predicated on mass manufacturing, portions we alone can not deal with.” The cell division now represents a considerable income stream alongside conventional cameras, essentially altering Leica’s enterprise mannequin from pure digicam producer to diversified optics and know-how firm.Opening the L-Mount to competitorsBeyond smartphones, Leica demonstrated a willingness to collaborate in its core digicam enterprise. In 2018, Leica partnered with Panasonic and Sigma to determine the L-Mount Alliance, opening its proprietary full-frame lens mount to rivals. The alliance has since expanded to incorporate extra producers together with Chinese language corporations like SIRUI and Viltrox, plus DJI, Astrodesign, Blackmagic Design, and others. This represents a basic strategic shift for a luxurious model traditionally protecting of its know-how. By licensing the L-Mount normal, Leica features broader lens ecosystem assist for its SL-series cameras whereas gathering licensing income. The transfer acknowledges that closed ecosystems battle in fashionable digicam markets the place lens choice usually determines buy selections. Leica’s willingness to welcome Chinese language producers into the alliance notably alerts pragmatic acceptance of the place optical innovation more and more originates.Leica’s / Leitz’s L-Mount Alliance is overtly accepting a variety of lens producers. Picture credit score: LeitzThe M EV1: Difficult the rangefinder’s sacred groundThe willingness to accomplice with smartphone producers – as soon as unthinkable for a luxurious digicam model– set the stage for an excellent bolder transfer: essentially reimagining the M-series itself. For readers unfamiliar with Leica’s M system: conventional M-series cameras use optical rangefinders exhibiting photographers a view by way of a separate window somewhat than by way of the lens. Vivid framelines point out the seize space whereas a coupled rangefinder mechanism allows exact handbook focus by overlaying two photos that the photographer aligns. This method permits seeing past the body edges, making it prized for documentary and road pictures. Photographers from Cartier-Bresson to modern shooters have sworn by this expertise.Leica M EV1. Picture credit score: LeicaThe M EV1, introduced in October, removes the rangefinder fully. As a substitute: a 5.76-million-dot OLED digital viewfinder with 0.76x magnification, exhibiting the digital sensor feed with real-time publicity preview and digital focusing aids. The choice was years within the making. “We had this consideration in our minds for a very long time,” Leica product chief Jesko von Oeynhausen advised supervisor magazin. The know-how wasn’t mature sufficient earlier. “We wished to totally study whether or not we might change the core of the M mannequin with electronics.”Given the M-series’ iconic standing amongst photographers – roughly equal to a traditional Porsche amongst automotive fans – the stakes have been excessive. Inner debate was intense. However Leica proceeded with a transparent rationale: “We wished to make it simpler for brand new prospects to enter the world of the M-system,” von Oeynhausen defined, positioning the M EV1 as an accessibility play somewhat than a alternative for conventional rangefinder operation.A Leica first: an OLED viewfinder within the M EV1. Picture credit score: LeicaThe digicam shares its imaging basis with the M11 household: 60MP full-frame BSI CMOS sensor with Triple Decision Expertise (capturing at 60MP, 36MP, or 18MP), Maestro III processor, 64GB inside storage plus SD card slot, and 4.5 fps steady capturing. The previous body selector lever has been repurposed as a multifunction button for toggling focus peaking, magnification, or digital zoom. The physique is 45 grams lighter than the M11, with the rangefinder window eradicated for a clear entrance design. Like current Leica cameras, it consists of Content material Credentials know-how for picture authentication—notably related for photojournalism in an AI-generated imagery period.At $8,995 USD / €7,950, the M EV1 sits barely under the M11-P in pricing. Nonetheless, U.S. availability has been delayed pending FCC certification, whereas the digicam launched as scheduled in October in different international markets.Business response: Worth proposition vs. Leica mystiqueSince the Leica M EV1 can be a picture digicam and doesn’t have any video options by any means, CineD determined to skip reviewing the digicam. So let’s have a look at what a few of our {industry} colleagues specializing extra on pictures needed to say about it.The pictures {industry}’s response has been sharply divided, with criticism centering on whether or not the M EV1 justifies its worth as soon as the distinctive rangefinder expertise disappears. DPReview’s evaluation was blunt: “I can’t see the purpose in paying 91% of the price of a Leica rangefinder, solely to get one thing that isn’t a rangefinder.”The worth proposition query turns into acute when evaluating specs. The Sony A7C R presents 61MP, in-body stabilization, quick autofocus, and M-mount lens compatibility by way of adapter for beneath $3,000 – a $6,000 financial savings. When you’re utilizing an EVF with handbook focus and no stabilization, rivals provide objectively superior specs throughout the board. The 60Hz EVF refresh price, whereas acceptable for stills, trails the 120fps EVF in Leica’s personal Q3 cameras. Battery life rankings under 250 photographs necessitate carrying spares.Digital Digital camera World supplied a extra measured take, noting the M EV1 offers another somewhat than alternative. Leica continues providing 4 conventional rangefinder fashions (M11, M11-P, M11-D, M11 Monochrom) for photographers who need the traditional expertise. The publication additionally identified that Leica’s Q-series has efficiently used EVF-only operation for years, proving market urge for food exists for Leica glass and construct high quality with out optical viewfinders.The target market seems to be photographers who worth M-series construct high quality and the intensive M-mount lens catalog (over 80 choices) however want digital focusing aids over rangefinder operation. This consists of photographers with imaginative and prescient challenges, these utilizing ultra-wide or telephoto focal lengths tough to border with rangefinder vibrant strains, and videographers who want video recording capabilities conventional M cameras lack.Leica’s historical past goes again over 100 years – with the primary sensible 35 mm digicam they invented in 1914. Not removed from the working precept of a rangefinder. Picture credit score: LeicaKaufmann’s philosophy: Ahead or dieThe M EV1 controversy displays Kaufmann’s core philosophy about Leica’s survival. “If I’m ever pleased with what we’ve achieved, then I’m out, as a result of then I’m directing my gaze to the previous,” he said to supervisor magazin. This forward-looking strategy extends throughout Leica’s increasing portfolio past cameras – projectors, watches, eyeglass lenses – all becoming inside the firm’s core experience in optics and precision mechanics.“For us, all enterprise areas make sense the place it’s about capturing gentle and precision mechanics,” Kaufmann explains. “This data is required not solely in digicam manufacturing but in addition in smartphones, house cinema projectors, and eyeglass lenses. On the finish, we at Leica perceive gentle incidence higher than anybody as a result of we’ve been doing nothing else for 100 years. Even when it will get darkish typically.”The M EV1 represents precisely the type of calculated risk-taking that saved Leica from chapter 20 years in the past. When confronted with extinction in 2005, the corporate that had outlined 35mm pictures might have clung to analog purity and pale into historical past. As a substitute, it embraced digital know-how, diversified aggressively into smartphones and different optical merchandise, and located methods to make legendary optics related to new markets and new generations of photographers.Joel Meyerowitz with the Leica M EV1. Picture credit score: LeicaWhether the M EV1 succeeds commercially stays to be seen – and whether or not rangefinder purists settle for or reject it might not in the end matter to Leica’s backside line. The smartphone partnerships, projector enterprise, and eyeglass lens division now drive substantial income impartial of conventional digicam gross sales. The M EV1 demonstrates Leica’s willingness to problem sacred floor somewhat than relaxation on historic laurels, even when it alienates among the very photographers who saved the model alive by way of its darkest interval.What the Leica transformation means for the digicam industryLeica’s transformation presents classes for the broader digicam {industry} scuffling with smartphone disruption. The corporate’s near-death expertise in 2005 might have been the tip of the story – one other legendary model unable to adapt to digital actuality. As a substitute, Leica’s survival technique mixed aggressive diversification, strategic partnerships leveraging model heritage, and willingness to reimagine even its most iconic merchandise.The smartphone partnerships show notably instructive. Reasonably than viewing cell cameras as pure competitors, Leica monetized its optical experience and model cachet by way of collaboration. The Xiaomi relationship alone doubtless generates substantial licensing and co-development income whereas increasing Leica’s presence to hundreds of thousands of customers who would by no means buy a $9,000 digicam. This diversification cushioned the blow when digicam market volumes declined industry-wide.The M EV1’s controversial rangefinder removing reveals Leica believes the M-series should evolve to outlive long-term. Conventional rangefinder customers skew older; youthful photographers raised on mirrorless cameras with EVFs could discover rangefinder operation counterintuitive. By providing an M-mount digicam with acquainted EVF operation, Leica probably expands its addressable market whereas sustaining the M-system lens ecosystem and manufacturing experience. Whether or not this technique works is determined by execution and market acceptance—however doing nothing ensures irrelevance.The Leica headquarters in Wetzlar, Germany. Picture credit score: LeicaThe Leica transformation from near-bankruptcy to €596 million income demonstrates how heritage manufacturers can survive technological disruption by way of aggressive diversification and calculated risk-taking. The controversial M EV1 represents the most recent chapter on this evolution, eradicating the rangefinder that outlined M-series cameras for 70 years in favor of digital viewfinder operation. Whether or not you view this as innovation or sacrilege could rely on whether or not you prioritize Leica’s survival or its custom. What do you concentrate on the Leica transformation technique? Does diversifying into smartphones and eradicating the rangefinder compromise the model’s soul, or is that this pragmatic evolution vital for survival? Don’t hesitate to tell us within the feedback under!