Why Is Hi Fi Gear So Darn Expensive?

In 1912 Edison sent his salesman out across the country to pedal his new disc phonograph.  The price was up to $250.  That’s about $40,000 today- for a record player.  But things got better.  In 1968 a Marantz Model 18 stereo receiver cost $695.  That’s about $5700 today for a 40 W/ch receiver.  I remember my dad buying our first color tv in 1968.  A 25” Philco I recall it costing about $450 or almost $4000 in today’s money.  That was big money back then.  No vacations for a couple of years. 
Stereo receivers and TV’s are much cheaper and more commonly found these days but were once considered hi end luxury. We lament the high prices of luxury but historically that is how it has always been.  Same as it ever was, as they say. 

Hi tech stuff that's well made costs big bucks.Thats  life!!

Can't comment on the high-end prices, but I'm staggered by the inflation in prices over the past 2 or 3 years.

Admittedly, COVID, supply-chain issues and Brexit (here in the UK) have been disrupters, but looking at reviews only 3 years old indicate rises nearing 100%.

Paradoxically, it's made me spend more as if I delay for a couple of years on a purchase it will only be hugely more pricey.

@fsonicsmith 

The trouble with the expensive watch analogy is that they require regular expensive servicing.  

When I sold my 20 year old Omega recently I had spent more on servicing than on the original purchase.

Hi-fi can require maintenance, but nothing like this.

The watch analogy does not work at all in the high end audio field. In high end audio cost is based on performance… not even remotely true in high end watches.

Before I retired I realized one of my aspirations, if I was successful in life was to own a Rolex. So, ten or fifteen years ago I bought a starter watch to introduce me to nice watches (I had used Seiko divers watch’s for decades because I was a diver). I was shocked at how bad it was at keeping time… it’s primary function. I got it adjusted, but found that one second per day was standard for all mechanical watches… $2K, $10K, or $25K. I was shocked and disappointed… and if you get a quartz movement Rolex… then you loose cashe.
 

I lived much of the time in Japan and China, flying back and forth a couple times a month. This was not a watch for me. All luxury goods I have purchased before, first and foremost outperform… that is their raison d’être. But not watches. I finally found a Seiko Astron which was tied to the clock from GPS satellites and automatically adjusts the watch to where you are. In Japan, if your watch is off 30 seconds, you get on the wrong train. Anyway, watches, not a good analogy.

High end audio first and foremost is about performance.