High-End Audio Faces a Reckoning

[nicoff]

The traditional audiophile base is aging, and most have already bought their “last Cadillac.” Younger listeners aren’t chasing esoteric gear — they’re buying measurement-driven products from companies like Topping, SMSL, Benchmark, RME and a few others that deliver state-of-the-art performance at a fraction of the price.

Digital technology has closed the gap. Transparent DACs, amps, and streamers now cost hundreds, not tens of thousands. Once transparency is reached, the old narrative of “dramatic differences” collapses.

The market for boutique brands is shrinking fast. To survive, many will have to reposition themselves as luxury lifestyle goods — just as watchmakers did when quartz made mechanical precision irrelevant.

Many names will vanish. Others will be absorbed. The era of “absolute sound” in the high-end is giving way to an era of “absolute branding”.

That’s my take.

 

[Bones13]

That is the trend, to be sure. Once you accept the fact that today’s young only want either wireless earbuds to play their Bluetooth music from their phone, and ease of streaming to in room speakers.

Certainly there are some holdouts with a vinyl fetish, but they are not using a mega $ turntable, but rather something simple, reliable, and not particularly expensive.

Today’s manufacturing has moved away from expensive boutique through hole electronic components to miniaturized SMD components, put together by robots. Often these new SMD parts actually have better, and more predictable specifications.
There is also a change of the sound characteristics of the younger generation. Boomers, like me, grew up with tubes, and SS electronics that tried to sound like tubes. Spec sheets were interesting, but listening was considered the best way to evaluate gear. This was often done at a local brick and mortar audio store.

The internet changed all this, and “listening” is done on YouTube, and the spec sheet is the final word. Honestly, I find most of the inexpensive gear that has near perfect “specs” to sound too dry, and clinical to my ears. But that’s just me.

Change of generations. They get to like what they want. It’s up to the industry to respond. I think Mike at SunCoast is doing it right, with his new internet direct site. This lets him get some younger customers, who might upgrade their systems as the grow, and become more financially able.

DartZeel is supposed to be making this pivot away from ultra expensive gear, but he has not re-emerged that I can tell.

 

[Mike]

Good post. We are very data driven as an organization. I have many copy cats, so I don’t post a lot about what’s going on. But we are beyond busy.

I’ll give some insight. Our data backs up your claims based on demographics. We not only use all available data from paid third party sources, but also compile our own data.

Suncoast Audio retail store remains focused on the luxury high end market with many prestigious brands.

Suncoast Audio Direct is our online only, value brands which caters to a different demographic. We are investing heavily in our studio and other things for this business.

Luxury HiFi Distribution is my distribution brand bringing hand picked world wide brands to the North American market. Watch for exciting things being announced shortly. We have Dave and Bill handling the dealers for the associated brands in North America and Daan for ROW for Clarisys. One day, I’ll tell the story of why I started Luxury HiFi Distribution. Basically got tired of talking to people for hours only to have them buy from someone else. I laugh now when they sheepishly tell me they ordered their Clarisys Minuets from one of my dealers. Good! I still get paid.

Clarisys Audio Global - I own 50% of the company and actively involved with Daan and David growing the world market for Clarisys. Florian (50%) and the team in Vietnam focus on design and manufacturing. I’m actively involved in this side as well.

Play It Again Audio - trade and consignment used products. Juan and the team focus on testing, photographing, listing and selling used and consignment items.

Florida Audio Expo - working with Bart and the team, I’m an owner of this very successful show.

Audioshark - could sure use some help from you guys on this one! I can’t come up with topics every day!

Angel Flights - as an instrument rated pilot, I just finished my training for Angel Flights. I’ll be flying children with cancer for treatment.

2026 - I plan on launching a business and website aimed at a younger audience for audio. We are also looking and designing and producing our own set of electronics.

Our staff of my 10 full time employees are the backbone of our success. I couldn’t do it without a great team.

What’s the point of all this? I doubt there is anybody else in this industry involved in retail, online retail, distribution, pre owned, trade show, manufacturing and media. The stool has many legs. As things change, you need to be able to adapt. I have quite the perspective on things.

 

[Dizzie]

Angel Flights - as an instrument rated pilot, I just finished my training for Angel Flights. I’ll be flying children with cancer for treatment.

Off the main topic. Bless you for sharing your abundance by helping sick children and their families.

 

[nc42acc]

Here is a thought. Talking about the younger generation swooning over the “chifi” audio is a fact. I bet if you ask any of that generation if they have ever experienced a true high fidelity system they would say no. Can you remember what created you as an audiophile? Probably a HiFi shop experience and the love of music. I don’t think that the industry is dying but could be rejuvenated with more exposure. Brick and mortar shops are not as prevalent but I see successful ones have many open house and vinyl spinning events. The youths interest can hopefully be sparked with introduction. Am I on the right track here?

 

[Dizzie]

Have you all forgotten what it is like to be young? I was poor growing up and working my way through college. Even when I had my first job I did not feel "abundant". I had new expenses for better housing and a car. Audio dollars were limited. I do remember how much I enjoyed getting my first "high-end" (to me) equipment from Radio Shack. That was back in the day when they sold decent electronics built by companies like Pioneer. It still hurt financially.

Many of us are blessed with stock portfolios fattened by time and technology. Our houses are paid for. Younger people are not there so obviously they look for affordable sources for musical entertainment. Even a few years ago I would not have had as much discretionary cash as I have now. The stock market has been kind to me. I still find prices staggering.

We also grew up with some pretty great music. I am not finding anything new worth the cost of a high-end system.

I give you the point that younger people are not exposed to good systems. They are like us when we were young. We were exposed to what our friends had so we bought what we knew. If we had had iPods back in the day, we would have owned them. We were literally forced to go big.

 

[nc42acc]

Have you all forgotten what it is like to be young? I was poor growing up and working my way through college. Even when I had my first job I did not feel "abundant". I had new expenses for better housing and a car. Audio dollars were limited. I do remember how much I enjoyed getting my first "high-end" (to me) equipment from Radio Shack. That was back in the day when they sold decent electronice built by companies like Pioneer. It still hurt financially.

Many of us are blessed with stock portfolios fattened by time and technology. Our houses are paid for. Younger people are not there so obvioiusly they look for affordable sources for musical entertainment. We also grew up with some pretty great music. I am not finding anything new worth the cost of a high-end system.

I give you the point that younger people are not exposed to good systems. They are like us when we were young. We were exposed to what our friends had so we bought what we knew. If we had had iPods back in the day, we would have owned them. We were lliterally forced to go big.

I agree. Hearing what can be would maybe be the gateway to becoming an audiophile and going beyond cheap “chifi”

 

[Mike]

Have you all forgotten what it is like to be young? I was poor growing up and working my way through college. Even when I had my first job I did not feel "abundant". I had new expenses for better housing and a car. Audio dollars were limited. I do remember how much I enjoyed getting my first "high-end" (to me) equipment from Radio Shack. That was back in the day when they sold decent electronics built by companies like Pioneer. It still hurt financially.

Many of us are blessed with stock portfolios fattened by time and technology. Our houses are paid for. Younger people are not there so obviously they look for affordable sources for musical entertainment. Even a few years ago I would not have had as much discretionary cash as I have now. The stock market has been kind to me. I still find prices staggering.

We also grew up with some pretty great music. I am not finding anything new worth the cost of a high-end system.

I give you the point that younger people are not exposed to good systems. They are like us when we were young. We were exposed to what our friends had so we bought what we knew. If we had had iPods back in the day, we would have owned them. We were literally forced to go big.

Very true. When I talk to the “young ladies” with the sweetest little voices calling for Suncoast Audio Direct products like Cambridge, Rega, Rotel, Eversolo, it gives me hope. I upgrade many of them for free. I think I’m a softy.

 

[Dizzie]

Very true. When I talk to the “young ladies” with the sweetest little voices calling for Suncoast Audio Direct products like Cambridge, Rega, Rotel, Eversolo, it gives me hope. I upgrade many of them for free. I think I’m a softy.

Gateway drugs. Who are you fooling?

 

[Mike]

Gateway drugs. Who are you fooling?

True!

 

[Michaels HiFi]

Great post, Mike.

Take amps as an example: I see many of the people on my page coming into high end much more interested in the boutique hand made items that can be bought for between $3K-$10K then I do with the $20K Accuphase pieces or overpriced questionable Soulution stuff I've had come through here.

I'm excited because they appreciate the boutique stuff other than NAD type mass market stuff, and embrace the personal relationships they form dealing with the small company-types I listed above. They love the personal 1x1 talking with the companies themselves which is great to see.

Even with dealers, it is the RELATIONSHIP that is key to the success of higher end gear, AND the customer moving up in gear as they grow into it.

I hope that companies like this can help people move up from brands such as Topping, Ever Solo, NAD, etc. as their audio involvement matures.

The way you had your previous Florida Audio Expo engage a younger and family crowd is part of the path for future audio hobby success. We need to make people feel included, and not excluded.

Far too many companies - and dealers - are snobs that are a detriment to the future of this hobby. It's interesting to see the dramatic traffic shift from the top-heavy controlled forums to Facebook / IG / YT etc. where people are bypassing traditional controlled messaging and seeking out different thoughts and opinions. I know my traffic stats for instance are up 500% year over year.

 

[nc42acc]

Very true. When I talk to the “young ladies” with the sweetest little voices calling for Suncoast Audio Direct products like Cambridge, Rega, Rotel, Eversolo, it gives me hope. I upgrade many of them for free. I think I’m a softy.

Those brands definitely are great "gateway drugs" of audio. Amazing at the fidelity level you can achieve for so little money these days.

 

[Mike]

Those brands definitely are great "gateway drugs" of audio. Amazing at the fidelity level you can achieve for so little money these days.

It’s actually an effort to find the real gems for the money. I have a few more we are looking to add. I won’t go into too much detail, but HOW this buyer buys is vastly different too. Many manufacturers haven’t figured that out. Hint: the Amazon generation.

 

[nc42acc]

It’s actually an effort to find the real gems for the money. I have a few more we are looking to add. I won’t go into too much detail, but HOW this buyer buys is vastly different too. Many manufacturers haven’t figured that out. Hint: the Amazon generation.

Very familiar.......Order today, doorstep tomorrow.