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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
elberoth2's avatar
elberoth2
1,223 posts
 
taters,

They did. But it is for sale again. Supposedly they are loosing money on ARC now. They killed the cash cow ARC used to be when Fine Sounds first bought it.
taters
1,149 posts
 
Elberoth2,

What do you think they did to kill the cash cow?

jmcgrogan2's avatar
jmcgrogan2
6,346 posts
 
oregonpapa, no need to be so defensive for ARC. We all know that you love ARC.

As I mentioned in my first post, ALL high end companies are following this business model. Perhaps due to the lesser numbers of audiophiles, and the lack of desire to compete with Chinese products, but all high end companies are spiraling upwards at an alarming rate.
Nordost came out with Odin line, Tara Labs released all their Grandmaster stuff, even my favorite company, VAC, released their Statement line with ridiculous pricing.

I don’t blame the high end market, why shoot the messenger? It is the economy that is driving them to change their business model. Adapt to what the market demands. The market obviously wants to spend a lot more money on gear these days.
It is NOT a simple matter of inflation though.
taters
1,149 posts
 
"The market obviously wants to spend a lot more money on gear these days"

I agree with you're statement. The 64k question is why?



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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