Why there are not many western brands creating DAP?

[artpiggo]

I recently observed that most DAPs in the market comes from China, Japan and Korea (which is eastern side) while in western side, there is not many DAP brands (I can only think of Pono player, Questyle) Most of western brands are focusing on creating high end DAC/AMP and headphones and IEMs, but not many create DAP to compete with eastern zone. Why is that?

 

[Whitigir]

I recently observed that most DAPs in the market comes from China, Japan and Korea (which is eastern side) while in western side, there is not many DAP brands (I can only think of Pono player, Questyle) Most of western brands are focusing on creating high end DAC/AMP and headphones and IEMs, but not many create DAP to compete with eastern zone. Why is that?

R&D cost, the time being invested, and Labor. You have probably known that China labor rate is pretty insane. Therefore, they have the human power to haul through these intensive researches. For the Western part, it has to be a huge market, quick moving margin, and turn over, to even considered for qualifying short term. Heck, take Apple as an example, if not of their R&D are not done by China recently, and production chains being there. There is no way to have it at this price, and produced, cycled at this Rate.

 

[artpiggo]

R&D cost, the time being invested, and Labor. You have probably known that China labor rate is pretty insane. Therefore, they have the human power to haul through these intensive researches. For the Western part, it has to be a huge market, quick moving margin, and turn over, to even considered for qualifying short term. Heck, take Apple as an example, if not of their R&D are not done by China recently, and production chains being there. There is no way to have it at this price, and produced, cycled at this Rate.

I understand that. However, I think if AK brand and its price point can still be sold. Why can't western?

 

[Mhog55]

Small market

 

[artpiggo]

Small market

You mean people in western prefer listening in home setup while Asian prefer listening outside so DAP market in western is smaller?

 

[Mhog55]

You mean people in western prefer listening in home setup while Asian prefer listening outside so DAP market in western is smaller?

In general. The greater majority of society is listening to gobs and gobs of mp3 files on their iPhones. Not hi res files from a dap. It's a select market.

 

[artpiggo]

In general. The greater majority of society is listening to gobs and gobs of mp3 files on their iPhones. Not hi res files from a dap. It's a select market.

But if every company sees only this side of the cup. there won't be any DAP company in the world right? You can see AK brand and price position are still in the game until now. Why can't chord or ifi wanna jump into this market? There should be some other reasons rather than just market size.

 

[davidcotton]

But if every company sees only this side of the cup. there won't be any DAP company in the world right? You can see AK brand and price position are still in the game until now. Why can't chord or ifi wanna jump into this market? There should be some other reasons rather than just market size.

There was a while back where the fear was that the dedicated dap market would vanish as a whole so we are quite "lucky" that things are as vibrant as they are. At the end of the day all companies are interested in is profit. Remember that things generally are built down to cost, not up for profit.

 

[genck]

You mean people in western prefer listening in home setup while Asian prefer listening outside so DAP market in western is smaller?

I can't recall the last time i've seen anyone use a DAP here in the US, it's all about cell phones with wireless bluetooth iem's or over ears. That is what sells, whether it's good or not.

 

[Mhog55]

But if every company sees only this side of the cup. there won't be any DAP company in the world right? You can see AK brand and price position are still in the game until now. Why can't chord or ifi wanna jump into this market? There should be some other reasons rather than just market size.

Because that cup does not turn enough profit to pursue. Daps are expensive, cell phones are not. We live in a society that generally prefers simplicity. Everyone has a cell phone. Most people don't know what a hi res file is. Just because some Western companies start producing daps, doesn't mean it's going to sell and spread like wild fire. We're fortunate we have the dap choices we do. In short, it doesn't make good business sense for audio companies when they make so much money from other things. If you really want to know why those companies don't jump into the dap game, maybe give them a call and ask.

 

[gimmeheadroom]

Western companies are not making much at all anymore. Most of the stuff with western-branded companies is Made in China if you read the fine print.

And everybody at my office just gives me blank stares when they see one of my DAPs and asks is that a phone? When I say no, they say why don't you just use your phone

 

[gazzington]

Most people in the UK stream Spotify on there phone and use Bluetooth headphones (beats, Sony and Bose)
When I take a dap in to work people ask me what it is and why do I need it when I have a phone. And I work in IT

 

[Whitigir]

I would say:

DAP are not convenience and not enough profit with not enough return rate. Those are as simple as I can put it.

There are more for the Western to invest in that have all of the attractive points

 

[artpiggo]

I think I have a clear answer. Thanks everyone.

 

[Colors]

More ppl take public transit in Asia vs. driving culture here in NA.