The death of ultra hiend audio


Verity and DarTzeel last year, now MBL, ultra high end audio manufacturers are facing their demise and they have nobody but themselves to blame. What do these companies have in common: too much investment in creating the very best and when that fails raising their prices bottom up to recover their losses and inevitably charging 2x what the same product cost just a few years ago. Ego, greed and poor management can only result in one thing!

hiendmmoe

Almost all high-end audio companies either go out of business or become husks of their former selves after being acquired and drastically reorganized. 

Look at Mark Levinson. From legendary 90s powerhouse to zombie brand adrift under Harman’s corporate umbrella.

As far as their ability to repair, they might as well not exist. Try asking them to service Madrigal-era gear.

Let's flip the question around and ask what high end companies are successful and why?  Then we might really learn something.

@treepmeyer +1 

Its hard to know which brands are truly successful without seeing financials. I would start with brands that have stood the test of time without bottoming out financially or selling to big corporate,  which often results in the brand continuing in name only. 

Accuphase, Pass Labs, and Grado Labs come to mind. Burmester, T+A, and Zellaton are German brands that qualify. Audio Note, Kuzma, Air Tight are other examples and there are many more. One common thread is that all these manufacturers have been known for many years-decades-for building high quality, reliable stuff. As far as I know, they've not succumbed to the temptation of VC buyouts. Each of these companies have a loyal following and concentrate on their core business. They must be doing something right.

If I were the kind of guy who worries about serviceability and is keen to ship gear back to the manufacturer for maintenance, I'd have an all-McIntosh system.

 

@cbrez 

It’s one thing to think about a particular luxury industry in isolation, but I do think it is important to look at some in parallel as well. Watches, fashion, automobiles, etc. Each is distinctive, but are there are any similarities over time? Every Axpona (and other shows) we see in forums about new folks in the crowd. Curious to see what others think about how high end audio compares in this regard compare to other very high end luxury goods. I know that this is a broad line of inquiry, but why is high end audio at the brink (not saying it actually is) and other luxury industries are not (let’s not get into tariffs).

Because you can’t wear an MBL amp never mind one of their flagship speakers.

Tag and Omega increased their prices because they were a bargain compared to Rolex and have  better technology. Why? Because no one wants to wear a bargain status symbol. Marketing 101: What category of goods doesn’t reduce their prices in a recession? Luxury goods: audio is not a luxury item.