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Breaking news! Chinese company acquires Stax.. - Page 2  

post #16 of 330
Quote:
Originally Posted by Anaxilus View Post


Do companies buy other companies to make a loss?  

 


 

That's a bit of a non-sequitur; there are many ways a company could lower the price to increase profits.  If they move design and manufacture to China, they can lower the price and make the same profits.  Or, they can take a different strategy, and sell a greater quantity at a lower price.
 

 

post #17 of 330
Quote:
Originally Posted by seacard View Post

 

That's a bit of a non-sequitur; there are many ways a company could lower the price to increase profits.  If they move design and manufacture to China, they can lower the price and make the same profits.  Or, they can take a different strategy, and sell a greater quantity at a lower price.

 

It wasn't a logical argument, it was a pessimistic prognostication based on typical historical audio trends.  When that first blue John Williams edition rolls off the line we'll know then.  wink.gif

post #18 of 330

In the past, moving manufacture from the US to China has involved reducing the quality of manufacture at the same time. So having things made in China tends to be analogous with having things made poorly and cheaply. High-quality production is available in China, but it doesn't provide the same cost savings compared to the same production elsewhere in the world. Apple products (love 'em or hate 'em) are examples of mass-produced electronics with incredibly high fit tolerances that are economically made in China, but Apple can afford to invest in the infrastructure (including buying and installing the equipment its contract factories use) to ensure it's possible. Smaller manufacturers usually have to deal with contract factories and hire agents to supervise quality control, which adds significantly to the cost for small scale production.

 

In other words, cheap stuff can usually be made far cheaper in China. For quality stuff, the margin of savings is much narrower, when there's any.

 

If the new corporate owners are pragmatic they are weighing their options. It's possible that Stax may end up with its product development and R&D staying in Japan while corporate HQ and manufacture moves to China. A Chinese parent company is in a good position to ensure good work is done there; it's up to the executive overlords to want to do it.

post #19 of 330

Is there a link for this? I have trouble believing it.

post #20 of 330

The problem is you're starting off thinking the story is false, which makes it hard to believe.

If you start off by believing it, it will become true.

 

 

post #21 of 330
post #22 of 330

At approx. US$15 million, it can be seen as a prestige acquisition by a Chinese company for not a large investment.  I would think that nominally, the parent company would do as little as possible (at first) to disturb the brand's position within the market place.  Stax is a known entity, highly-regarded and commands a premium for its products.  The parent company using the Stax brand to market a $30 iem dilutes the brand and makes the investment worthless.

 

I would think that the Stax manufacturing would likely stay in Japan, since a move away from there to a mainland China manufacturing site would be poorly received in the market, regardless of the actual quality of the factory, and result in a loss of asking price.  What would likely happen is that the technology and manufacturing processes will be exported and used to create a more center-market brand to compete with Audeze and Hi-FiMan. 

 

Someone in the mainland has looked at the market numbers and seen that the biggest growth in music home-entertainment is in headphone and personal systems, and they want to tap it.

post #23 of 330


So is this an investment or acquisition?

 


Edited by Anaxilus - 12/8/11 at 8:52pm
post #24 of 330

If this is true, I will buy another pair of SR009 before the acquisition... May worth a lot a few years later :)

 


Edited by googleli - 12/8/11 at 8:59pm
post #25 of 330

It could be a lot worse. They could've been bought by Klipsch.

post #26 of 330
surely part of the Appeal is that they are Japanese, as an owner that is a very important part for me as I have a high regard for Japanese products.

I think it pertinent to watch this excellent video just posted by Wilson Audio about manufacturing integrity.


Edited by ianmedium - 12/8/11 at 9:06pm
post #27 of 330
Quote:
Originally Posted by Anaxilus View Post


So is this an investment or acquisition?

 



 

 

My answer: Yes. (it's both)

post #28 of 330

Concern, concerned - - this will be the thread to watch.

I was considering some of my Stax equipment, but have now decided to hang on to them.

post #29 of 330

Same here. If it happens I may go buy another pair of 009 as backup.

post #30 of 330

Well, I didn't want to head into the Stax neighborhood so soon, but I will echo you gents and very seriously evaluate my own "get in now or be sorry later" plan because there are no guarantees about the future, despite my imagined hopes for the new parent company's planned course of action.

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