Do you think some audio companies might go under due over the next few months due to the coronavirus/possible global recession?
Mar 22, 2020 at 8:09 AM Thread Starter Post #1 of 12

baskingshark

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Hi friends, cause of the coronavirus situation worldwide, many economists have predicted a recession over the next few months. Not surprising due to the travel restrictions, quarantines, spooking of investors, lack of factory output, logistics/transport hold ups etc. Indeed, some of my friends and family working in the F&B, retail, hotel and travel industries have been retrenched or put on no pay leave recently.

This virus looks like it may be here for the long haul, or godforbid, become a longterm baseline virus. A lot of audio gear production, parts and assembly goes thru China, even for western brands. China seem to have recovered from the first wave, but not sure if the production lines have fully recovered yet.

I have a feeling many will start cutting back on purchases over the next few months, I'm also subconsciously cutting back on some non essential purchases the last few weeks, not only audio related. I really hope none of our favourite audio companies go under during this period, but hobbies like audio can be very expensive, especially if one strays beyond the budget FI segment. Maybe audio companies might need to innovate and go for price to performance ratio or target certain niche audiences, or go for tried and tested designs/tunings.

In our western society, what someone spends is another person's income and with all these restrictions and cutting back of spending, I have a feeling some of the more expensive audio gear might take a hit. What do you guys think??

Though in the big scheme of things, having good health and keeping employment is more important than our audio hobby. I do hope the world can go back to normal soon and that everyone recovers, keeping my fingers crossed. Take care everyone and stay healthy!!!
 
Mar 23, 2020 at 8:14 PM Post #2 of 12

ricksome

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audio can be very expensive, especially if one strays beyond the budget FI segment.....

I have never strayed from budget FI when I started out in the late 1960's. I would hate to see any company (audio or other) go out of business because of the current situation.

I hope everyone is in good health / Rick
 
Mar 24, 2020 at 7:45 AM Post #4 of 12

Whazzzup

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The resell market is and will explode over the next 6-18 months. Unemployment will skyrocket to 15-25% as gov spend like crazy to keep civil order. So ya this will put an end to high end audio from being anything but niche. I expect as in 91 audio became cheaper and there were fewer offerings from branded manufacturers.

The world isn’t prepared, as each country gives up social isolation a new wave of infections will occure, this will continue till mass vaccinations are complete in 1-3 years. Societies will test the concept of 5% death rate as an acceptable outcome of survival. So audio yup, glad I got mine, to blissfully isolate into the apocalypse.
 
Mar 24, 2020 at 1:22 PM Post #5 of 12

tomb

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I don't think the audio industry will be that badly affected - comparatively speaking, at least. I'm sure CanJams and headphone meets are out of the question right now. However with headphones, there's not that much dependence on in-store shopping or people gatherings. Isn't that the regular complaint: "Where can I go to listen to quality headphones?"

You've probably heard that Amazon is hiring/expanding even more than usual. Music has already shifted enough toward downloads, that it's getting difficult to get CDs. (We can ignore the still very tiny niche of LP/turntable revival.) Primary electronics parts suppliers had already shifted to mail-order/e-commerce over a decade a go, or longer. Compared to restaurants, movie theater chains, and sporting events, I don't think audio has much to worry about.
 
Mar 24, 2020 at 2:00 PM Post #6 of 12

Whazzzup

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well other than a decade of wealth evaporation.
 
Mar 24, 2020 at 3:06 PM Post #7 of 12

tomb

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well other than a decade of wealth evaporation.
Yeah, I said, "comparatively speaking." Everyone is going to lose something in this scenario, until things get back to normal.
 
Mar 24, 2020 at 3:20 PM Post #8 of 12

FastAndClean

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most of the chi fi will stay alive, they have very big population and the inside market is enough to save a lot of them
the big "brands" however will be in trouble, especially when people are loosing their jobs, not a lot of them will be "ok" spending big chunk of money, the priorities will be shifted dramatically
for chi fi however i think most people will be able to afford even in a big crisis situation, i am done with buying earphones that i don't need, that's for sure
 
Mar 25, 2020 at 2:31 PM Post #10 of 12

wuwhere

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Some manufacturers and retail would go under. In the USA the Federal government has $2,000,000,000,000+ to prop them for a little while but some would eventually go bust, unfortunately.
 
Mar 25, 2020 at 2:39 PM Post #11 of 12

Hillskill

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The resell market is and will explode over the next 6-18 months. Unemployment will skyrocket to 15-25% as gov spend like crazy to keep civil order. So ya this will put an end to high end audio from being anything but niche. I expect as in 91 audio became cheaper and there were fewer offerings from branded manufacturers.

The world isn’t prepared, as each country gives up social isolation a new wave of infections will occure, this will continue till mass vaccinations are complete in 1-3 years. Societies will test the concept of 5% death rate as an acceptable outcome of survival. So audio yup, glad I got mine, to blissfully isolate into the apocalypse.

Yes I agree with this. I am sorry to say that I think the current state of lockdown in various nations will be on and off for potentially a year. This is a very serious pandemic that has been immorally played down in some political circles. I am genuinely worried for the US.

In terms of the used market I also echo the above point. All those most seriously effected by the economic downturn will aim to sell their nice gear. Those in a better position stand to benefit and may even exploit those sellers desperation and need to generate funds.

Community has never been so important and valuable.
 

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