The fate of Hi-End Audio?

[PHC1]

“With astonishing swiftness, the pandemic has shut down both longstanding and new businesses, leaving veteran workers and recent hires in nearly every type of industry without a paycheck. In just three weeks, more than 16 million U.S. workers have lost their jobs — more losses than the most recent recession produced over two years.
It’s as if “the economy as a whole has fallen into some sudden black hole,” said Kathy Bostjancic, chief U.S. financial economist at Oxford Economics. Many Wall Street analysts concede that at this point, forecasts are not much more than gussied-up guesses: The purposeful and sudden halt in economic activity has no precedent, and no one knows when the restrictions on movement and commerce will be lifted.”

[Masterlu]

SIFC / self induced financial coma.

[Formerly YB-2]

Where's Henny Penny (or is that Chicken Little) when one really needs her?

Hope you are wrong about food. I don't mind raising a few tomato plants, but I'm sure my neighbors won't be too thrilled about a steer in my back yard.

[MasterChief]

In Sweden (and other Scandinavian countries) the annual reports are official (and are available for free online) and looking at a few, but well known, high end producers they are not making much money. Labour costs is to high compared to the number of produced products.

I think people overestimate the sales number, because the brands are so well known. But they forget that for the common man they are totally unknown. Brands like Gryphon, Vitus and Marten are very small companies, with revenue as a small shop. The last official numbers are from 2018 and Marten had a revenue of $1,5 million and made a profit of $ 50 000 (and that was a record). Vitus had a revenue of $ 500 000 and made a profit of $ 50 000. Gryphon had a revenue of $1,5 million, but actually had a better profit of $ 400 000.

And the cable companies are even smaller. Zensati had a revenue of $ 150 000 with $ 7000 in profit.

There are not much room for losses in sales and the reason they exist in the first place is true passion for high end music reproduction.

I guess that many of the small high end companies around the world has the same figures.

Then if I look at the bigger companies like Dali they have a revenue of $ 7 million, and a profit of $1,5 million. Way better, but still pretty small numbers for such a well known brand.

I really hope that all the small entrepreneurs with their passion will stand. The audio world would be so much more boring if only companies like Wilson, Sonus Faber, DynAudio, Linn, and B&W existed.

[gbaby]

Originally Posted by urbanluthier

Personally, my primary consideration when purchasing a high quality audio product is reliability and local support. If the manufacturer can't stand behind their product for a decade or more (i.e. service and stock parts for repair) then I won't even consider them.

If this is your philosophy than never buy Arcam. I got stuck with a brand new AV9 that cannot be repaired. Fortunately, now I own a Bryston SP3.

[cleeds]

Originally Posted by gbaby

... I got stuck with a brand new AV9 that cannot be repaired ...

We are drifting OT but ... wasn't it covered under warranty?

[nicoff]

Originally Posted by MasterChief

In Sweden (and other Scandinavian countries) the annual reports are official (and are available for free online) and looking at a few, but well known, high end producers they are not making much money. Labour costs is to high compared to the number of produced products.



I think people overestimate the sales number, because the brands are so well known. But they forget that for the common man they are totally unknown. Brands like Gryphon, Vitus and Marten are very small companies, with revenue as a small shop. The last official numbers are from 2018 and Marten had a revenue of $1,5 million and made a profit of $ 50 000 (and that was a record). Vitus had a revenue of $ 500 000 and made a profit of $ 50 000. Gryphon had a revenue of $1,5 million, but actually had a better profit of $ 400 000.



And the cable companies are even smaller. Zensati had a revenue of $ 150 000 with $ 7000 in profit.



There are not much room for losses in sales and the reason they exist in the first place is true passion for high end music reproduction.



I guess that many of the small high end companies around the world has the same figures.



Then if I look at the bigger companies like Dali they have a revenue of $ 7 million, and a profit of $1,5 million. Way better, but still pretty small numbers for such a well known brand.



I really hope that all the small entrepreneurs with their passion will stand. The audio world would be so much more boring if only companies like Wilson, Sonus Faber, DynAudio, Linn, and B&W existed.

Those examples, made me think of the great number of automobile manufacturers that are ‘one-man’ companies. (Think of Pagani or Koenigsegg.)

Motor sports have a larger following than high end audio. But in motor sports, the engineering achievements can be measured: top speed, 0-60, 1/4 mile, aesthetics, exclusivity and more. The ultra high end audio has exclusivity price-wise. But what can be shown ‘technically’ to make these high-priced products compellingly better than other not-so-high priced offerings? I have read about many ‘subjective’ accolades about high-end products. But at the end of the day, that’s all about an individual’s perception. Unlike a record breaking 0-400kph-0 smash, that’s all hearsay.

https://www.motortrend.com/news/koen...ld-record/amp/

Hearsay is the problem with the high-end. If you can’t technically prove it, why is it better?

[nicoff]

To add, some of those one-man car manufacturers will make products that will eventually become collectibles and worth much more money that they were worth when new.
I cannot say that this is the case with ANY high-end audio that I have ever owned.

[gbaby]

Originally Posted by cleeds

We are drifting OT but ... wasn't it covered under warranty?

Expired.

[cleeds]

Originally Posted by nicoff

... Hearsay is the problem with the high-end. If you can’t technically prove it, why is it better?

Can't something be better because it sounds better? Are you suggesting audiophiles be required to provide technical proof for what they hear?