Why was the entry level line at Audio Research eliminated?


One of my first tube preamps was the SP-16. I believe it was the last preamp that founder William Z. Johnson developed. Price was around 2K-2.5K w/phono. It was an excellent reliable preamp. But now if you want a new entry level ARC it's not available. Too bad. Was it just not profitable. It was an excellent way to get into their gear and move up the ladder over time.
luxmancl38
There is plenty of older ARC product available used today.

ARC and others have found there is little demand and profit in less expensive product after the loss of the middle class since the 2008 crash.

IMO the new ARC does not have the richness and tone of the older ARC products since ARC was sold by Johnson the founder.
primaluna line magnetic jolida other chinese made gear delivers on the modest to low end, arc can’t hope to compete, margin would be minimal, if not negative

new italian owners no doubt paid a premium for the company, amortizing the enormous brand equity, taking it international (read: china) with super high dollar ’reference’ level gear
The good news and the bad news is that nothing has changed at ARC.

Everything is still made by hand, with every component soldered into every board by hand in their Minnesota plant. ARC bought a $100k wave soldering machine, which is what is normally used to solder parts into boards, but wave soldering does not sound as good as hand soldered pats in plated-through boards. ARC sold the machine. The boards they design and use are made for them by US manufacturers.

ARC also custom designs many of their own parts, including transformers, capacitors and wire, because they sound better than what's available off the shelf. That is expensive.

Every transistor (JFET, etc.) that they receive is measured and graded, with up to 23 grades according to the part. Specific grades are used for each circuit. In some cases ARC can use one out of two graded transistors; in some cases ARC uses one out of ten. Why? Because different grades sound different, and ARC wants every unit of every model to sound the same, provide the same great quality. Transistors that don't have the right grades are thrown out. That is expensive. 

Output tubes are burned in at specific frequencies and levels for 48 hours before they are measured and graded. Why? Because new tubes change quite a bit, and this is the only reliable way to match them--after the change.

Every ARC product that has balanced connectors is a fully-balanced differential design because it provides the highest performance, lowest distortion, and lowest noise. They do not use "inverters" to create the balanced signal. 

After every product is completed it is bench tested, burned-in for 24 (preamps) or 48 hours (amps), bench tested a second time and, if it passes, is sent for warm-up and listening in a reference system to make sure it sounds right. Because you can hear things that can't be measured. Then it is photographed from multiple angles to document its perfect condition before it is put in its shipping carton. 

This is the best and most expensive way to do things. The bad news is that it is difficult to offer less expensive products with these standards.

The engineering team has remained stable, with a couple of experienced engineers brought in because of retirements. The mission and values have never changed. ARC's CFO became President and ran the company for little over a year after their former President retired (after 29 years). That was when customer support suffered, a live person stopped answering the phone, and their "entry level" products like the SP17 and VSi60 were discontinued. He was fired, thankfully, with the new President getting the company reoriented and pointed in the right direction. ARC has not forgotten their lower price points and are working on it.
With 2020 being the 50th anniversary for the company, will there be any products coming out in honor of that milestone like had happened at earlier milestones (most notably 40th)? Or did the pandemic skew anything that had been planned in that regard off course?
The pandemic stopped almost everything in its tracks, which was and is compounded by the parts delays by some of ARC's key suppliers.
There is nothing to divulge now. If anything comes (big maybe), it will be a much more modest product.