The 'audiophile segment' of the headphone market has always been a modest share relatively
According to this report about North America, Europe and Latin America, the majority of headphone models sold are in the $10 to $300 USD range (unsure why SE Asia is omitted)
https://www.sonarworks.com/blog/research/headphone-sound-report-2023
Of course that's right.
And regarding my message that you cited, we have two business models inside this whole audio industry which are completely different and opposite:
1. Service-based creators-led atrisan business.
Expensive stuff. Done by hand. Low level of automation both in production and in the customer service (and other processes too). Lower quality as a result - meaning that there is a larger unit variance, more mistakes and defects.
Companies are somewhat organised just enough to cope with tens or hundreds of orders. Organisation is barely good enough to get a job done in 4-12 weeks as maybe no one ever mapped and optimized the stream of value flow. People are juggling emails and get tired of messaging back and forth which disrupts their focus on more value-inducing tasks.
Product is expensive enough to be repaired, reshelled, ownership transferred etc. which always requires thought and skill, and so many customer contact points destabilize any attempts to achieve a flow in the processes.
Higher prices require stronger marketing efforts meaning managing social media accounts, publishing photos, artist deals and reviewers, thus even more distraction.
2. Manufacturing-based administration-led trade business. Think Sony.
Mostly cheap stuff. Done by machines or by inexpensive employees trained to do just a few specialized operations on a production line. Higher quality as a result - quality meaning "every unit is made according to standard". Not much unit variance, however there may be defects due to cost optimization and lower quality of used materials.
High level of organisation both in production (neccessary to warrant a stable level of quality across thousands of products) but by extension of company culture - also in administrative tasks. So the processes are orderly laid out. Company gets thousands of orders maybe, or hundreds if working through a wider distribution chain. Product is cheap enough to be replaced or just thrown away. So there are almost no customer requests and there even may be no way to contact the company, especially if the customer service was delegated to distribution.
Some companies manage to mix both business models under one brand, which seems astonishing.
Look at Noble: they are making $4k CIEMs from stabilized wood with the company owner personally answering emails, helping to choose a block of wood and overseeing the process. Then they also have their own TWS earphones mass manufactured with DAC chips, ANC and such. I may only guess that this is in a partnership with a Chinese subcontractor as this is a completely different type of manufacturing organization.
There are also silent revolutions like FiR Audio, making hi-end custom IEMs in an organized way so that for the first time in this industry a 3-day rush order is available along with a 7-day option. Channel matching is impeccable, 2pin sockets are proprietary to last longer, etc. That's the way things should be, but one needs to be not only a great audio artisan, but also a superb manager to build a company organized like this. Very few can wear both hats.