Classe move to China

Obviously done for the purpose of increasing the profit margin. I am guessing these economic times have reduced sales of many high end audio products. Classe will signficantly reduce manufacturing cost even though labor costs in China have been increasing at such a rate so as to squeeze margins and even driving foreign companies to look elsewhere. I guess even Thailand labor was too costly. Thailand produces most of the world's supply of computer hard drives. They must have some reliable tech manufacturers there. Will Classe also opt to replace some components with cheaper ones? Unknowns. All my components have been manufactured in the US or Europe. Testing once on the bench after assembly doesn't mean the item will last as long as before. If electronics will fail they usually do so within the first year of use. What's Classes's warranty? Should be longer now.

You got a point Pubul57. I know there are tech manufacturers in China who can produce high quality electronic components. Out of country companies need frequent contact with them to insure standards are maintained.

Thier decision is still about retaining/growing profit margin. No one's going to start and continue a business without wanting a "reasonable" if not "healthy" profit. One does not operate a business just to cover expenses. Profits fulfill many important functions especially future growth. Profit margins also act, yes, as a dipping pool for top execs. How much of a dipping pool this is and how much is dipped varies. I AM NOT AN APOLOGIST FOR BUSINESS. Kindly withhold any vitriol some of you may have from over-reacting to the opening of this note. Classe has issued price increases over time likely for the same reasons other businesses do so, increasing cost of labor and materials and their interest in retaining the margin. I suspect the decision also revolves around price point. Every item/service has a certain price point when exceeded results in lower sales. Most every consumer reaches a limit with a product's price save for those with money to spare or those who will purchase despite the price and their budget. Even the "best" electronic manufacturers in China with the most stringent oversight by the customer company still cost significantly less than manufacture in Canada or the US. This decision automatically increases their margin giving them longer term flexibility on pricing. Businesses are all about the numbers. Overall, I am definitely NOT pro business, but they do employ people. A double edged sword. It is a cutthroat environment. I am not a "high end" customer. Good for those who have the $ to buy the "high end" gear. Hope it all sounds great and meets your expectations. I think spending thousands on a piece of audio gear is funny. Classe's prices to me are funny. Just the same as buying a Benz or one of the other "high end" automobiles. I smile and chuckle when I pass one of these cars on the road. "Yes you are better than me, but I didn't spend the $ you did." It is all relative in the end. Classe does what any other "high end" auto maker does: they make a pretty package for a hi-performing piece of equipment. In the final analysis guys thier move remains a matter of THEIR benefit not yours. Bryston has 15 more years on their warranty than Classe. Hmm..... Emotiva has a 5 year warranty for goodness sake. For the prices Classe charges, since they call their products the BEST (from their website), one would think they could offer a longer warranty. My Hafler 9180 power amp made purchased in 1995 for $477 has a 7 year warranty! It has operated faithfully since then. For those of you so predisposed you may now chuckle. Classe amps likely sound "better" than my cheap little amp. Well good for them. In many respects the higher the price the higher the margin's made by audio equipment manufacturers. Once the circuit design has been created it's the can. Then parts vendors are sourced and manufacturing facilities and labor added. Year after year most "new and improved models" are likely not a significant difference over the previous. The price tag is and there's the trick play. Sometimes yes, "great sonic improvement" can occur. In high end electronics I am not convinced, but then again I drive a 2006 Honda Civic. "Wait for it, here comes the bru ha ha!" B and W the owner of Classe, is laughing all the way to the bank.

He does indeed protesteth too much..:) I like the new look of Audiogon's front page. It bears not even a tangential relation to the subject of China. But then again, just who designed the new look anyway! Foreign or domestic? heh heh.