Why is the industry so lame?


I'm a 40+ audiophile who just can't understand why the industry is so tied to the past. Countless audio manufacturers will eventually go the way of the buggy makers if this continues. Consider:

In 1998 the Diamond Rio was introduced and Diamond was sued by the RIAA.
In 2001, the Ipod was introduced and it held 1000 songs.
In January 2003 Flac was introduced.
In 2003, Sonos was founded.
In November 2003 the Squeezebox was introduced.
In April 2004 Apple introduced its own lossless codec.
In 2005, Apple sold over 20MM Ipods for the first time.
In December 2007, Apple sells its 125 Millionth Ipod.

As we head into 2008, this is where the industry finds itself:

A growing number of mfrs now have proprietary Ipod docks to enhance their revenues to the tune of $100-300.

Krell now has a dock dubbed the KID that includes a preamp for about $1300. Matching power amp TBD.

The vast majority of preamplifiers have no DAC or DAC option.

Bryston and Naim have integrated DAC's into one of their integrated amplifiers (Bryston's is an option).

Only Outlaw has a 2 channel receiver with built-in DAC.

Rather than seeing the emerging new technology as something to be embraced the entire industry seems to regard it as something to ridicule. Sure, not everyone wants a DAC in their amp but how many are buying $2500 CD transports these days or even $1000 phono cartridges.

When will the industry wake up and smell the coffee?
wdrazek
I posit this is not as easy a situation to deal with as has been supposed above. Most American 'high-end' manufacturers are specifically not trying to compete with 'everything-in-the-one-box' products like A-V receivers (which usually have the DAC). There are two issues here: 1) if one competes on price, one risks alienating one's existing customers, many of whom enjoy a psychological effect of owning something 'exclusive', 2) manufacturers who want to compete on quality by offering a much higher price point are effectively cornering themselves into a very small niche market (there is a limited market for all-one-brand stereo+music server systems running tens of thousands of dollars.

While I would love to see ARC, Atmasphere, Berning, CJ, Manley, VAC, VTL, etc (apologies if I left your company out - these just popped into my head) create small integrated amps for less than 2000 dollars a pop which included a 25W amp, a DAC (complete with USB/I2S/SPDIF/BNC/toslink inputs), great attenuation circuit home theater pass-through, and if possible a touch screen remote which allowed me access to my iTunes.

On the other hand, if I already have the integrated amp and PC, I can buy the USB DAC for $300-1000, and can buy the "remote" for the cost of an iPod Touch, and $30 of shareware.

How, pray tell, can the manufacturers above compete with that?
I don't like the idea that trends can be identified, fixed and we can know their outcomes with certainty; to me that is a popular form of arrogance now in style. Gauging people's artistic tastes is also exceedingly difficult and some just don't want MP3, PC-based sources or Ipods at all -the impersonal nature of which gets in the way of enjoyment, not to mention issues of the sound quality like those Hack raised.
Audiophiles should make a truce with pro sound hardware, which I think will be around for a while. The latest pro sound units are darned good, and, incedentally, do not carry absurd prices. The technology is the same as audiophile gear...certainly closer than the consumer products that people have mentioned above.

I use several pieces of pro sound hardware and find them all very satisfactory...something that I cannot say about lots of audiophile equipment I have owned.

Behringer DEQ2496 equalizer (3)
Ashly electronic crossover (2-way four channel)
CarverPro ZR1600 amps (3)
.
To second Eldartfords point - much of the early work was done in the pro/semi-pro audio space. Think of the Apogee DAC, the Waveterminal U24 USB to SPDIF box which vanished and Blue Circle is now emulating and on. These are tools and the people who make the best tools that meet the needs of their customers win...

FWIW - several years ago I proposed the idea of running a USB port into a very high profile US mfgrs CD player to leverage the owners investment in the internal DAC... to say nothing of the cables, isolation and other tweaks... still waiting. Meanwhile I no longer have a CDP
Ckrody: Isn't the Benchmark 1 derived from or in fact a piece of pro gear?

My CDP is gone now too... sniff sniff.