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Audio Research discontinuing lower lines components?

I have looked at several components in Audio Research's line and they are discontinuing the LS17-se, PH8, and PH6.  They discontinued the DAC 8.  I know there is a new Ref 6 to replace the Ref 5se and their is a new Ref Phono 3 to replace the Ref Phone 2se coming out.  I talked to my dealer and he stated that Audio Research seems to be making their components look more McIntosh like in the Galeo series. 

The dealer stated their isn't going to be anything that he has heard that will replace the other lines at this point and that AR will be starting at the LS-27, which is $7500 for preamps.  The Ref 75se is the beginning of the line for Amps, which I know, but man are they going the Mac route with prices, nothing to replace the DAC 8 and the other DAC in the line is $11,000, what's up with this, have you guys heard anything more. 

The starting point for AR equipment is getting pretty high and the only way a newer person without means will be able to afford it will be to buy use, which could send the used prices up if there isn't anything else in the line.  What do you guys think and what have you heard?
sid1

Showing 5 responses by pops

pops
2,272 posts
 
They also have a huge innovation appetite.  That fuels growth for a while but eventually begins to back up - unless enough people will upgrade until the cows come home.

At some point they will have to maintain a "Classic" line of products - IMO.  Some of them are great - like the PH5 for example.  The only ARC product I have owned.  Just a guess, I could be wrong, they obviously have an intense game plan that appears to be working.
pops
2,272 posts
 
I hear you samzx12.  I am equally pissed at the new owners of Thiel and hope they fail miserably.  But Thiel sold, sure they had to under the circumstances, and the new owners have the right to do as they please.  Just wish they would change the name to "Thiel you wish."
pops
2,272 posts
 
Taters - my former employers came up with that term - they made up a lot of things!!!  LOL!

pops
2,272 posts
 
Premiumnization - that is the plan for ARC.  They have built the base of premium products for years and are now in position to drive pricing to whatever they choose.  And for the high end niche they are big box - pretty good position to be in.  bpoletti is right though - there will always be hand crafted gems that make david beat goliath.  But ARC will still crank out the volume to loyal ambassadors.  Fine with me.

pops
2,272 posts
 
Great points jmcgrogan2 - good job expressing economics.  I am ready for a revolt!  

The other issue for a company like ARC is the ceiling they reach when economies of scale have run out.  The necessary step to keep growing and making money is to reinvent, innovate, and have a long term growth plan.  That takes cash and upfront investment.  Don't forget about rising costs Jmcgrogan mentioned because that is reality!  So now for a fictitious example, maybe they were spending 31 cents on every dollar they made,  At some point to maintain that ratio or improve it, again, you need a plan.  You sure as hell cannot survive if it goes the other way.

 Now I could be wrong about ARC reaching their ceiling but when your brand is is global with a  good distribution network there are not a lot of gaps to fill.  Time to sell to new owners who have a strat plan and rarely if ever is it business as usual.  My favorite audio company Thiel is another example.  But they are going the other way, value versus premium.  

Interesting information from Elberoth.... 

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