Has the ultra hi-end morphed into a prototype market?

[wisnon]

Given the latest announcement of a $120K Light Harmonic Dac, the SIRE, I think this article Adam posted is relevant. Couple points to add to Roger's economics analysis. prices. He left out 2 othe "5 forces" factors: Internal industry rivalry and Govt regulations. These also affect price levels, but of course may be less relevant here, though the disconnect between US retail prices and actual paid market prices is growing.

Wizard High-End Audio Blog: A High End Death Spiral?

 

[asindc]

He probably left out internal industry rivalry and government regulations as factors because they have been constants throughout the history of high-end audio. In other words, those factors don't represent recent changes that have contributed to price escalation.

 

[GaryProtein]

He arbitrarily set the price to raise the bar and have the most costly DAC without ever having produced one rather than covering costs plus making a profit.

 

[Zero]

Short answer: No.

 

[wisnon]

He probably left out internal industry rivalry and government regulations as factors because they have been constants throughout the history of high-end audio. In other words, those factors don't represent recent changes that have contributed to price escalation.

Sorry, I wasnt clear. I meant they affect prices in general (in other industries) not in this one. i feel he should have mentioned them and ruled them out for completeness sake.