Arcam in the Observer

[colinB]

Any one read the Observer on Sunday?

Arcam had a whole page in the Business technology section entitled " Elite audio firm targets iPods and goes for volume".
The journo had a listen to the new rCube, first in 128K MP3, then in 256 and finally a cd of the same track. He thought the mp3 sounded flatter in comparison and that on the cs you could hear the sax player licking his lips.
Charlie Brennan says he priced the rCube low at £500 because he is going for volume sales in 200 outlets.
I was surprised to read they lost 1 million in 2008 on 10.8 million turnover and 1.6 million in 2009 on a 8.1 turnover. So far this yearit has made a profit of 250000 on a 7.8 million turnover.
Im surprised because i thought Arcam were keenly priced , win lots of WHF awards and had a good stake in the Home cinema sector.

The article describes the Cube as having damped steel from developed by Toyota and all components are chosen by ear by the engineers.

The Cube can be special ordered in the customers choice of colour. Charlie adds "im sure we will have someone ask for a Swarovski diamond version, im looking forward to saying no to that.

[DSJR]

The lower end of the audio market has contracted very sharply indeed and many of the manufacturers at this price point, especially Arcam in the UK, have been subject to fickle customers following the reviews - one year Denon, next year Arcam, then Marantz etc. Certainly the last ten years have been a bit of a roller coaster ride for them and there was gossip about debts being exchanged for shares a couple of years ago (another well known UK speaker manufacturer has also done this I understand).

Arcam have made some darned good stuff over the years, much of it overshadowed by the "award winners," but used "sleepers" nonetheless. I wish them well with their new product :)

[hifi_dave]

I understand that their massive losses were mainly due to them attempting to get into the 'home cinema' market and having to buy insanely expensive licences. When the equipment didn't sell, they had no way to recoup the outlay.

If that is so, they are in good company with the likes of Proceed going down the toilet for very similar reasons. Relatively small companies like these cannot be competitive in the price sensitive 'home cinema' market.

[keiths]

I've always had a soft-spot for Arcam stuff. I coverted the original A60 as a teenager, and was really impressed at the improvement their Black Box DAC made to my Marantz CD65 (Still got the Black Box somewhere). I've always found their stuff to be 100% reliable, but when a mate had an intermittent problem with one of their later DACs (out of guarantee ), they went the extra mile to sort it out.

Would be a real shame if they went under, IMHO.

Sent from my HTC Tattoo using Tapatalk

[colinB]

I think they are a credit to British business and engineering and i hope the rCube does well.

[DSJR]

They won't go under, but like almost everyone else, they're suffering the contractions in their business in a volatile market sector and have to respond quickly to suit. I very much respect Charlie Brennan and have fond memories from the Linn days a million years or so ago (it seems now).

[technobear]

They still aren't getting it right though are they?

They were told more than 5 years ago where the audio market was going. They were told they needed to add digital inputs to their CD players and to start designing standalone transports and DACs. They ignored this advice and carried on making the same old kit that more and more people now just can't use as it doesn't meet their needs.

Where do I plug in the iPod? The TV? The DVD? The PS3? The Squeezebox? The Sonos? etc.

Finally we are given the rDAC but it a completely standalone product that in no way integrates with their hifi range, almost as if such a product couldn't be considered part of a 'proper' hifi. It's meant I guess to be part of a lifestyle system along with the Solo (still not a great visual match) but it's limited by its relative paucity of inputs and the limitations set upon them.

Then we have the rCube. A similar product from Sony or Denon for example would cost £150 and be reasonable for a kids bedroom. At £500 Arcam are having a laugh.

Audiolab are about to get modern hifi spectacularly right with the 8200 series (although it has taken far too long).

Arcam however have missed the party completely. Shame.