Funny to see this thread here...I commented on the topic in an unrelated thread a few weeks ago. I bought my Headroom Micro Amp (Desktop) back in 2006 or so when they were all the rage. The "gateway" effect as others have said.
I used it for many years. It was OK, but I honestly couldn't tell substantial differences with my HD650s between it and my AVR's headphone output (which, admittedly, I think the higher end Denon AVRs have better headphone amps onboard than some other brands/models....)
Looking back, I suspect the small size and 1/8" jacks held it back in terms of output impedance. I also suspect that ugly, noisy power brick keeps it back. I suspect it wasn't a good match for the 650s. But what I discovered after hooking up my 650's to a little Fiio E11 was that I actually liked the sound BETTER than the Micro. It was more open, less veiled, and had a wider soundstage. The "Right Between Your Ears" slogan at HeadRoom seems like more than a slogan....all the sound was a center blob in my head all those years. Even with crossfade (crossfade is fun, but not my cup of tea...)
I payed $350 for that amp years ago. I recently bought a Schiit Lyr and from the very first NOTE played through it, it was a whole different experience. My HD650's were much more opened up, wider, clearer sound, etc. For only $100 more and without the need for a dedicated power unit that costs as much as the amp module.
So what did I learn about Headroom? They have very well built solidly made hardware that's a pleasure to use, physically. The Micro Amp is probably a poor choice for matching with HD650s...presumably an output impedance issue. The sound staging, at least through 650's is lousy in the Micro (the old model anyway.) Now that I have Lyr I don't think I would ever.....ever....plug my 650's into my Micro again. Ever. I may use it with my MDR-7506 or other easier to drive phones though. I also learned I dislike the sound signature of it, but that's merely preference.
Overall I think Headroom's "problem" isn't so much their products but their pricing at this point in time. For the low-mid price point, which is where most people first try them such as the Micro line, you don't get a lot of bang for your money...some of the Chinese import companies have taken over that market such as Fiio and Hifiman, and Schiit with them (FOTM or otherwise) for the "in the know" crowd, and NuForce for the not-so-in-the-know crowd. For those willing to pay a bit more, I'm not sure they're offering anything unique anymore since their higher end units are substantially more expensive and start competing with things like Woo, and Grace...and IMO, for the money, I'd prefer the Woo or Grace... The fact that they actually sell their own competitors products is a little odd feeling. I also think, though this has always been their setup, that they lost their way by trying to be the best all-in-one audio retailer rather than just trying to be the best amp/dac manufacturer.
Generally they offer good quality products, but the price points for which they're available, they're wedged between similar performance at lower prices in less robust builds on one side, and better performance in prettier cabinets at the same price on the other side. I imagine they're doing well in the audio etail business, but for their amp business, if it ever starts flagging, I think they'll end up having to make the decision to go either downscale and compete on price or upscale and compete on performance/aesthetics. The no-mans land they're stuck in has got to be painful. Either that or use the fact that their hardware looks more like generic live-music monitoring equipment than "audiophile elite" gear as a marketing gimmick...
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I completely agree with several of the previous comments. Headroom amp sales probably suffer from being the first amp that many of us ever owned. It's ironic that the company which produced the "gateway" product that got many of us into the hobby, now (perceptually at least) suffers from being seen as outdated or off the leading edge.
khatch: I'd ammed an additional argument to your statement: I think in some cases, such as my own, their sales suffer from the fact that many of us started with their low-mid end as a "gateway" and given today's options compared to yesterdays, feel like we didn't quite get our money's worth from it at are hesitant to try their high end options. Especially with some of the newer options showing up at around the price point we paid for what was their low-mid end years ago that scarcely seems updated since then at the price.
For those that started with their high end balanced gear such as yourself though....that argument is probably much less valid
. I've long had the impression that their large desktop machines are of a very different class than their "Micro" line. Which goes back to price point. I'm not sure "Micro" really has a place in today's market at that price range.... It's neither suitable as a high end desktop amp, nor as a truly portable amp. Fiio, Cypher, Fostex, Peachtree etc have really crushed that market on either side of its price point.
Though, selfishly, I'm glad they still sell Micro so it doesn't make mine feel quite so obsolete!