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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
oregonpapa's avatar
oregonpapa
4,867 posts
 
You guys are looking in the wrong direction. 

I bought my first home in 1965. It was brand new in Huntington Beach. Yes ... THAT Huntington Beach, the one close to Newport Beach. I paid a grand total of $20,650 for the home and my payments, counting principle, interest, taxes and insurance was $147.00 per month. That home today would sell for around $600,000. So, the question is ... did the value of the home go up, or did the value of the money go down?

As long as we have a monetary system whereby the central social planners and the banking cartel can create money from nothing, not backed by anything of value, we will continue paying the hidden tax known as "inflation."  Its time to face facts ... we have a socialized monetary system, and its been this way since 1913. 

Audio Research is subject to inflationary pressures just like any other firm, or private person.  Smoke and mirrors guys ... smoke and mirrors.
jmcgrogan2's avatar
jmcgrogan2
6,346 posts
 
Audio Research is subject to inflationary pressures just like any other firm, or private person. Smoke and mirrors guys ... smoke and mirrors.

C’mon now oregonpapa, you can’t blame all of this on inflation. ARC’s prices have gone up 200% in the last 7 years. In 2008 the Ref 3 was the top of the line preamp at $10K. Today the top preamp is $30K.
Yes, the dollar has weakened, but not by that much. That is a 200% increase.

I know other audio manufacturers have followed the same path, but most outside of the audio industry are not raising prices 200% over 7 years, not even in education (which is out of control as well).

You can maybe blame 30-40% on inflation, the other 160-170% is on the redistribution of wealth, and the companies that cater to the elitism.
bpoletti
1,533 posts
 
It should be obvious.  It's a business plan.  They have built a substantial market in high-priced gear.  They can lower overhead by reducing their line to very expensive, high-margin equipment.  Fewer people, smaller manufacturing facilities, high profit. 

They just have to be careful to continue to provide value at those high price points.  Some small manufacturer could undercut ARC with superior equipment at a fraction of the ARC price.
pops
2,272 posts
 
Premiumnization - that is the plan for ARC.  They have built the base of premium products for years and are now in position to drive pricing to whatever they choose.  And for the high end niche they are big box - pretty good position to be in.  bpoletti is right though - there will always be hand crafted gems that make david beat goliath.  But ARC will still crank out the volume to loyal ambassadors.  Fine with me.

tomic601's avatar
tomic601
12,865 posts
 
listen first
then vote with your wallet
my only ARC component is a REF 5 se, they say the 6 is better.
my real brick and mortar dealer will loan it to me..
listen, decide, repeat...
Oregon, should have kept that SoCal beach community house...what is not inflation smoke and mirrors is they aint  making much new beach..your story does not play out the same in..Palmdale...
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