Heres a question for all of you and there is no right answer but something to think about -
What would you buy - CDP A or CDP B - both selling for $2000?..... Assume that other factors such as input/output spec, warranty are all the same.
Sridhar, the answer is not very simple.
IBM ruled the market in mainframes for a long time by providing cutting edge product and excellent service. Digital Equipment Corporation ruled the market by providing products that were meant for scientific computing and products that would never fail. You could never ever crash a PDP/11 computer, and that is reason that all space programs were based on DEC computers. Both these companies built up their reputation over a long time. Both these companies, unfortunately, did not see the evolving market and were swept aside.
Microsoft followed a different strategy. They killed the competition and bullied their customers. At the end of the day, they are facing competition from a unexpected quarter - the Net.
One thing common amongst all these companies - all of them had control over unique products and/or technology. No one else could duplicate that. There was only one IBM mainframe. There was only one PDP/VAX 11. There is only one MS OS. Yes, Tiger has the potential to dethrone, but MS has that in control. What else is common amongst these companies? The time and effort taken to develop their technologies as well as the iron tight grip on IP and other controls.
When we talk about consumer electronics, the market is different. I have, for example, no affiliation to any one brand. I have A/Cs from Samsung, O'General. I have a fridge from LG, a washing machine from IFB. I have TVs from LG, Akai, and Sansui. I have AV equipment from Onkyo, Oppo, Wharfedale, Pioneer, etc. Why? - simply because at the time of purchase these products provided the best VFM to me. Yes, I have to deal with multiple service requirements. Frankly I have not been able to make out any difference in the service requirements of any of these companies. I face the same hassle and need to exert the same amount of effort in each case. All the call centres may talk wax eloquent, but when it come brass tacks, they are all the same. I have solved my issue by befriending the technician so that I get a slightly more personalised care.
If at all I have any affiliation, it is to the dealer/shop that I buy from. Nearly all the products have been purchased from one shop. Again why? Number of reasons - I like the shop owner; he is knowledgeable, he remembers me; he treats me with respect; and, he gives me good discounts.
Both Oppo and, in my mind, Pioneer to some extent, completely destroyed the concept of high prices in the DVD player arena. They had/have access to the same technology that the manufacturers who made high priced products had/have. A good DVD player that would cost $1000, suddenly was available at less than $200. I can understand Pioneer with it's large distribution and service network. But how did Oppo do this? Smartly, I would say. They made products that would work for a long time, they used the Net to cut distribution and storage costs, and used Net based review mechanism to create a flutter in the market.
The media player market is becoming even more complicated. First came Squeezebox that allowed you to distribute music across the house with reasonable quality. They made a simple product, allowed the software to be in the open forum and gathered a huge reputation for themselves. Along came Logitech and changed a very successful business model. Then came Syabas that followed a strategy very similar to Logitech. A simple product, open forum for software, and correct pricing. But then they have been overwhelmed by a host of other companies following the same model. All of them use Sigma Design processors and there is hardly any difference between them, other than the external box. So which one do you choose?
Ten years ago companies such as Meridian, Yamaha and others designed and developed DSP as well as DAC circuitry. So if you wanted to buy a good CD player, you had to buy from one of such companies. Today DSP is made by TI and is the same in all players. DACs are made by a few companies such as Burr Brown, Cirrus Logic and others. They give you the complete implementation plan to develop a player that is as good as any other player in the market. Oppo placed itself in the Silicon Valley, worked with these companies and turned the DVD Player market upside down. Why would I buy from A, when B can give me the same product at a lesser price? After all the internal electronics comes from a few external sources, and these companies have no control over that. So why should I pay a premium to a Denon or a Yamaha?
As I said the decision is not easy. We have more choices, and along with it more confusion. Would I go with a product from a well known company for peace of mind? Would I be tempted by the options in a similar product from a less well know company? Would I take a risk and go with new technology and a unknown company that is open and transparent? Will my dealer help me make the choice. Will the dealer/distributor support/service me? Will I follow the 'use and throw' methodology and change my equipment every once in 3 or 4 years?
Cheers