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In 2005, Leica Camera AG was virtually insolvent after catastrophically missing the digital photography revolution. Twenty years later, the German manufacturer reports record revenue of \u20ac596 million for fiscal 2024\/25, driven by aggressive diversification into smartphone partnerships, projectors, and other optical products. The Leica transformation culminates this month with the M EV1, Leica\u2019s first M-series camera to replace the iconic optical rangefinder with an electronic viewfinder \u2013 a decision sparking fierce debate about whether the 150-year-old brand has compromised its soul to survive.<\/p>\n
This article is based on reporting by German business publication manager magazin<\/a>, which detailed both Leica\u2019s corporate transformation and the controversial M EV1 announcement in its November 2025 issue<\/a>.<\/p>\n The M EV1 represents a watershed moment for a company that nearly ceased to exist in 2005. Austrian entrepreneur Andreas Kaufmann, who rescued Leica through his family holding company ACM when the brand faced insolvency, has spent two decades proving that calculated risk-taking beats clinging to tradition. The new camera eliminates the rangefinder that has defined M-series operation since the 1950s \u2013 a decision that would have been unthinkable during Leica\u2019s darkest days but now exemplifies the company\u2019s willingness to challenge sacred ground rather than rest on historical laurels.<\/p>\n In 2005, Leica stood on the brink of bankruptcy. The company had fundamentally misjudged the digital photography revolution, watching competitors rapidly develop digital systems while Leica remained committed to analog cameras. The brand that had defined 35mm photography and captured defining moments of the 20th century \u2013 from Henri Cartier-Bresson\u2019s decisive moments to Steve McCurry\u2019s Afghan Girl \u2013 suddenly faced irrelevance and insolvency.<\/p>\n Kaufmann stepped in when Herm\u00e8s was the majority shareholder. \u201cLeica was virtually insolvent,\u201d he recalls to manager magazin. Despite the dire circumstances, he invested, brought in an interim CEO, and oversaw painful restructuring. \u201cThe company had to be financially stable before we could think about further development,\u201d he explained. That financial stabilization took priority over product innovation for several years. Survival first, innovation later.<\/p>\n The turnaround proved remarkably successful. Leica CEO Matthias Harsch announced in September 2025 that the company generated\u00a0\u20ac596 million in revenue\u00a0with\u00a02,400 employees worldwide, representing\u00a07.6 percent year-over-year growth. The trajectory has been consistent: from\u00a0\u20ac372 million in fiscal 2020\/21\u00a0to nearly\u00a0\u20ac600 million\u00a0four years later. <\/p>\n \u201cLeica Camera AG has undergone a transformation over the last 20 years from a traditional camera manufacturer with analog DNA to a digital system provider for high-quality photography, mobile imaging, sports optics, and smart projection,\u201d Harsch stated.<\/p>\n The smartphone gamble that changed everything<\/p>\n When Apple introduced the camera-equipped iPhone in 2007 \u2013 with Steve Jobs famously comparing the iPhone 4\u2019s design to a \u201cbeautiful old Leica camera\u201d<\/a> \u2013 industry observers predicted doom for dedicated camera manufacturers. Kaufmann saw it differently. Rather than viewing smartphones as existential threats, he recognized them as opportunities to expand Leica\u2019s brand reach and gain mobile industry experience.<\/p>\n Starting in 2008, Leica pursued smartphone partnerships. After collaborating with Huawei from 2016-2022 (ending due to U.S. sanctions), Leica announced a strategic partnership with Chinese manufacturer Xiaomi in May 2022. The collaboration goes far beyond simple branding or logo licensing. Xiaomi and Leica established the\u00a0Xiaomi x Leica Optical Institute<\/a>\u00a0at Xiaomi\u2019s Beijing campus \u2013 a\u00a02,644-square-meter facility\u00a0dedicated to optical research covering lens design, optical films, precision machining, and materials development.<\/p>\n Four smartphone series have launched since 2022. The\u00a0Xiaomi 14 Ultra\u00a0features a quad-camera system with\u00a0focal lengths from 12mm to 120mm\u00a0using\u00a0Leica Summilux lenses\u00a0and\u00a0variable aperture (f\/1.8-f\/4.0)\u00a0on the main camera. Users select between \u201cLeica Authentic Look\u201d (natural color reproduction with characteristic vignetting) and \u201cLeica Vibrant Look\u201d (more vivid colors jointly developed). The\u00a0Xiaomi 15 Ultra<\/a>\u00a0announced in early 2025 pushes further with a\u00a0200MP ultra-telephoto camera. Harsch has made multiple appearances at Xiaomi launches, positioning mobile imaging as \u201ca key driver of Leica Camera AG\u2019s sustained, profitable growth.\u201d<\/p>\n Leica also partnered with Sharp for the\u00a0Leitz Phone\u00a0series<\/a> exclusive to Japan, featuring Leica optics and design elements reminiscent of traditional M cameras. \u201cSuch partnerships are important because the smartphone industry works completely differently than ours,\u201d Kaufmann explains. \u201cEverything is based on mass production, quantities we alone cannot handle.\u201d The mobile division now represents a substantial revenue stream alongside traditional cameras, fundamentally altering Leica\u2019s business model from pure camera manufacturer to diversified optics and technology company.<\/p>\n Opening the L-Mount to competitors<\/p>\n Beyond smartphones, Leica demonstrated willingness to collaborate in its core camera business. In 2018, Leica partnered with Panasonic and Sigma to establish the L-Mount Alliance<\/a>, opening its proprietary full-frame lens mount to competitors. The alliance has since expanded to include additional manufacturers including Chinese companies like TTArtisan and 7Artisans, plus DJI, Astrodesign, Blackmagic Design, and others. This represents a fundamental strategic shift for a luxury brand historically protective of its technology. By licensing the L-Mount standard, Leica gains broader lens ecosystem support for its SL-series cameras while collecting licensing revenue. The move acknowledges that closed ecosystems struggle in modern camera markets where lens selection often determines purchase decisions. Leica\u2019s willingness to welcome Chinese manufacturers into the alliance particularly signals pragmatic acceptance of where optical innovation increasingly originates.<\/p>\n The willingness to partner with smartphone manufacturers \u2013 once unthinkable for a luxury camera brand\u2013 set the stage for an even bolder move: fundamentally reimagining the M-series itself. For readers unfamiliar with Leica\u2019s M system: traditional M-series cameras use optical rangefinders showing photographers a view through a separate window rather than through the lens. Bright framelines indicate the capture area while a coupled rangefinder mechanism enables precise manual focus by overlaying two images that the photographer aligns. This system allows seeing beyond the frame edges, making it prized for documentary and street photography. Photographers from Cartier-Bresson to contemporary shooters have sworn by this experience.<\/p>\n The M EV1<\/a>, announced in October, removes the rangefinder entirely. In its place: a\u00a05.76-million-dot OLED electronic viewfinder with 0.76x magnification, showing the digital sensor feed with real-time exposure preview and electronic focusing aids. The decision was years in the making. \u201cWe had this consideration in our minds for a long time,\u201d Leica product chief Jesko von Oeynhausen told manager magazin. The technology wasn\u2019t mature enough earlier. \u201cWe wanted to thoroughly examine whether we could change the core of the M model with electronics.\u201d<\/p>\n Given the M-series\u2019 iconic status among photographers \u2013 roughly equivalent to a classic Porsche among car enthusiasts \u2013 the stakes were high. Internal debate was intense. But Leica proceeded with a clear rationale: \u201cWe wanted to make it easier for new customers to enter the world of the M-system,\u201d von Oeynhausen explained, positioning the M EV1 as an accessibility play rather than a replacement for traditional rangefinder operation.<\/p>\n The camera shares its imaging foundation with the M11 family:\u00a060MP full-frame BSI CMOS sensor with Triple Resolution Technology\u00a0(shooting at\u00a060MP, 36MP, or 18MP),\u00a0Maestro III processor,\u00a064GB internal storage\u00a0plus\u00a0SD card slot, and\u00a04.5 fps continuous shooting. The former frame selector lever has been repurposed as a multifunction button for toggling focus peaking, magnification, or digital zoom. The body is\u00a045 grams lighter than the M11, with the rangefinder window eliminated for a clean front design. Like recent Leica cameras, it includes\u00a0Content Credentials technology\u00a0for image authentication\u2014particularly relevant for photojournalism in an AI-generated imagery era.<\/p>\n At\u00a0$8,995 USD \/ \u20ac7,950, the M EV1 sits slightly below the M11-P in pricing. However,\u00a0U.S. availability has been delayed\u00a0pending FCC certification, while the camera launched as scheduled in October in other global markets.<\/p>\n Industry reaction: Value proposition vs. Leica mystique<\/p>\n Since the Leica M EV1 is really a photo camera and does not have any video features whatsoever, CineD decided to skip reviewing the camera. So let\u2019s look at what some of our industry colleagues specializing more on photography had to say about it.<\/p>\n The photography industry\u2019s response has been sharply divided, with criticism centering on whether the M EV1 justifies its price once the unique rangefinder experience disappears. DPReview\u2019s assessment<\/a> was blunt: \u201cI can\u2019t see the point in paying 91% of the cost of a Leica rangefinder, only to get something that isn\u2019t a rangefinder.\u201d<\/p>\n The value proposition question becomes acute when comparing specifications. The\u00a0Sony A7C R\u00a0offers\u00a061MP,\u00a0in-body stabilization,\u00a0fast autofocus, and M-mount lens compatibility via adapter for under\u00a0$3,000 \u2013 a\u00a0$6,000 savings. Once you\u2019re using an EVF with manual focus and no stabilization, competitors offer objectively superior specifications across the board. The\u00a060Hz EVF refresh rate, while acceptable for stills, trails the\u00a0120fps\u00a0EVF in Leica\u2019s own Q3 cameras. Battery life ratings below 250 shots necessitate carrying spares.<\/p>\n Digital Camera World offered a more measured<\/a> take, noting the M EV1 provides an alternative rather than replacement. Leica continues offering four traditional rangefinder models (M11, M11-P, M11-D, M11 Monochrom) for photographers who want the classic experience. The publication also pointed out that Leica\u2019s Q-series has successfully used EVF-only operation for years, proving market appetite exists for Leica glass and build quality without optical viewfinders.<\/p>\n The target audience appears to be photographers who value M-series build quality and the extensive M-mount lens catalog (over 80 options) but prefer electronic focusing aids over rangefinder operation. This includes photographers with vision challenges, those using ultra-wide or telephoto focal lengths difficult to frame with rangefinder bright lines, and videographers who need video recording capabilities traditional M cameras lack.<\/p>\n The M EV1 controversy reflects Kaufmann\u2019s core philosophy about Leica\u2019s survival. \u201cIf I\u2019m ever proud of what we\u2019ve achieved, then I\u2019m out, because then I\u2019m directing my gaze to the past,\u201d he stated to manager magazin. This forward-looking approach extends across Leica\u2019s expanding portfolio beyond cameras \u2013 projectors<\/a>, watches<\/a>, eyeglass lenses<\/a> \u2013 all fitting within the company\u2019s core expertise in optics and precision mechanics.<\/p>\n \u201cFor us, all business areas make sense where it\u2019s about capturing light and precision mechanics,\u201d Kaufmann explains. \u201cThis knowledge is needed not only in camera production but also in smartphones, home cinema projectors, and eyeglass lenses. At the end, we at Leica understand light incidence better than anyone because we\u2019ve been doing nothing else for 100 years. Even when it gets dark sometimes.\u201d<\/p>\n The M EV1 represents exactly the kind of calculated risk-taking that saved Leica from bankruptcy two decades ago. When faced with extinction in 2005, the company that had defined 35mm photography could have clung to analog purity and faded into history. Instead, it embraced digital technology, diversified aggressively into smartphones and other optical products, and found ways to make legendary optics relevant to new markets and new generations of photographers.<\/p>\n Whether the M EV1 succeeds commercially remains to be seen \u2013 and whether rangefinder purists accept or reject it may not ultimately matter to Leica\u2019s bottom line. The smartphone partnerships, projector business, and eyeglass lens division now drive substantial revenue independent of traditional camera sales. The M EV1 demonstrates Leica\u2019s willingness to challenge sacred ground rather than rest on historical laurels, even if it alienates some of the very photographers who kept the brand alive through its darkest period.<\/p>\n What the Leica transformation means for the camera industry<\/p>\n Leica\u2019s transformation offers lessons for the broader camera industry struggling with smartphone disruption. The company\u2019s near-death experience in 2005 could have been the end of the story \u2013 another legendary brand unable to adapt to digital reality. Instead, Leica\u2019s survival strategy combined aggressive diversification, strategic partnerships leveraging brand heritage, and willingness to reimagine even its most iconic products.<\/p>\n The smartphone partnerships prove particularly instructive. Rather than viewing mobile cameras as pure competition, Leica monetized its optical expertise and brand cachet through collaboration. The Xiaomi relationship alone likely generates substantial licensing and co-development revenue while expanding Leica\u2019s presence to millions of users who would never purchase a $9,000 camera. This diversification cushioned the blow when camera market volumes declined industry-wide.<\/p>\n The M EV1\u2019s controversial rangefinder removal shows Leica believes the M-series must evolve to survive long-term. Traditional rangefinder users skew older; younger photographers raised on mirrorless cameras with EVFs may find rangefinder operation counterintuitive. By offering an M-mount camera with familiar EVF operation, Leica potentially expands its addressable market while maintaining the M-system lens ecosystem and manufacturing expertise. Whether this strategy works depends on execution and market acceptance\u2014but doing nothing guarantees irrelevance.<\/p>\n The Leica transformation from near-bankruptcy to \u20ac596 million revenue demonstrates how heritage brands can survive technological disruption through aggressive diversification and calculated risk-taking. The controversial M EV1 represents the latest chapter in this evolution, removing the rangefinder that defined M-series cameras for 70 years in favor of electronic viewfinder operation. Whether you view this as innovation or sacrilege may depend on whether you prioritize Leica\u2019s survival or its tradition. <\/p>\n What do you think about the Leica transformation strategy? Does diversifying into smartphones and removing the rangefinder compromise the brand\u2019s soul, or is this pragmatic evolution necessary for survival? Don\u2019t hesitate to let us know in the comments below!<\/p>\n","protected":false},"excerpt":{"rendered":"In 2005, Leica Camera AG was virtually insolvent after catastrophically missing the digital photography revolution. Twenty years later,…\n","protected":false},"author":2,"featured_media":277346,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[160891,64,63,45173,160898,160900,160901,160895,160893,14988,160897,160899,160890,160894,160892,160896,105,11133],"class_list":["post-277345","post","type-post","status-publish","format-standard","has-post-thumbnail","category-technology","tag-andreas-kaufmann","tag-au","tag-australia","tag-business-transformation","tag-camera-industry","tag-camera-manufacturers","tag-camera-technology","tag-corporate-turnaround","tag-diversification-strategy","tag-industry-news","tag-leica-camera-ag","tag-leica-m-ev1","tag-matthias-harsch","tag-photography-business","tag-rangefinder-cameras","tag-smartphone-partnerships","tag-technology","tag-xiaomi"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/277345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=277345"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/277345\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/277346"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=277345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=277345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=277345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Leica_M_EV1_PDP_08_0.jpg-900x506.webp.webp\")
The new Leica M EV1. Image credit: LeicaThe 2005 crisis that nearly killed an icon<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Andreas-Kaufmann-900x1200.jpg\")
Dr. Andreas Kaufmann, chairman of the supervisory board at Leica. Image credit: Leica Camera AG<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/XIAOMI-15-ULTRA-900x506.jpg\")
The Xiamoi 15 ULTRA features Leica Summilux lenses. This is the \u201cphotography kit\u201d. Image credit: Xiaomi<\/p>\n![\"L-Mount](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/L-Mount-Leitz_featured-640x360.jpg\")
Leica\u2019s \/ Leitz\u2019s L-Mount Alliance is openly accepting a wide range of lens manufacturers. Image credit: LeitzThe M EV1: Challenging the rangefinder\u2019s sacred ground<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Leica-M_EV1-01-900x506.jpg\")
Leica M EV1. Image credit: Leica<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Leica_M_EV1_detail_EVF.png-900x600.webp.webp\")
A Leica first: an OLED viewfinder in the M EV1. Image credit: Leica<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Leica-first-35-mm-900x506.jpg\")
Leica\u2019s history goes back over 100 years \u2013 with the first practical 35 mm camera they invented in 1914. Not far from the working principle of a rangefinder. Image credit: LeicaKaufmann\u2019s philosophy: Forward or die<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Leica_M_EV1_PDP_Joel.jpg-900x506.webp.webp\")
Joel Meyerowitz with the Leica M EV1. Image credit: Leica<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Leitz-Park-PR.jpg-900x600.webp.webp\")
The Leica headquarters in Wetzlar, Germany. Image credit: Leica<\/p>\n