"Apple Computer, on the bus, with the iPod."
According to this article, the iPod — or, more accurately, the current ubiquity of music-on-the-go via a small portable player — is killing hi-fi. JVC and Kenwood just merged in an effort to cut costs and stay competitive in a shrinking and crowded market, and the parent company of Denon, Marantz Boston Acoustics, Snell Acoustics and McIntosh is up for sale.
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"CD Player sales were $36.2M" Well, who buys a dedicated CD player instead of a DVD player? (In 2006, there were 20M DVD PLAYERS sold for, I'd guess, well over $1B in sales.)
And the thing is, with a digital output, ANY DVD player is going to produce absolutely gorgeous sound, if you put a decent amplifier in front of it.
So the end result is that the only "Hi Fi" component you need is a home theater amplifier, and then a half dozen digital devices for sources.
And home theater rooms, and home theater systems, are selling just fine.
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(Though the last is somewhat moot because, well, (a) my tape player died too, and (b) who records CDs to tape any more? The advent of readily-available CD-ripping software and the commodity portable MP3 player has made the Philips compact cassette effectively obsolete.)
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