The mass-market audio business is scared to death of iPods. Sales of $500 speakers are shaky, A/V receivers aren't exactly flying off the shelves, and nobody's getting rich selling $59 DVD players. Prices of flat screen TVs are still falling, and so are the profits. Meanwhile overhead and other costs go up every year.
The mainstream business model is faltering, but the two channel, high-end market is holding its own, thank you very much. THE hot speaker at the moment is Magico's Mini II ($29,600 per pair including floorstands). I was more than a little … Read more