SME exits tonearm business

I think their strategy is to concentrate their turntable business, which in these times make sense to stay in the game.


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This is a "head scratcher". Can't believe that they are not able to scale their business to do both.
 
I get what they are trying to do or at least I think I do by selling tables with tone arms as a lot of companies are doing versus putting money into building tonearms that probably don’t sell as fast and to carry inventory is expensive.


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Ritmo said:
This is a "head scratcher". Can't believe that they are not able to scale their business to do both.
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I think its all about margin, Mike.

In some respects, Dynaudio did something somewhat similar a while back. As you likely know, they used to OEM drivers for many loudspeaker companies, including Wilson, Vienna Acoustics, Eggleston Works, Totem, and many others. They made a decision a while back to no longer supply drivers to competitor companies.
 
Stephen -

Not having visibility to their financials, it's hard to tell if this a financial decision, ability/willingness to scale up production, or an overall change in the strategy (which will have implications to their financials).

In any event, there are plenty of tonearm options in the market.
 
Ritmo said:
Stephen -

Not having visibility to their financials, it's hard to tell if this a financial decision, ability/willingness to scale up production, or an overall change in the strategy (which will have implications to their financials).

In any event, there are plenty of tonearm options in the market.
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True. Agreed, Mike.
 
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