ACI to Market & Sell Rocket ELT System

Discussion in 'Speakers & Subwoofers' started by Lew Crippen, Sep 29, 2003.

  1. Lew Crippen

    Lew Crippen Executive Producer

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    This thread on the AV123 forum has information that ACI (a compete ting company in many areas to Onix) is to being selling the ELT system. ACI apparently does not have an offering in this price range and felt them to be a superior offering.

    It will be interesting to see how these two competitors manage to share products and profits.

    For sure both companies make very fine products.
     
  2. DanaA

    DanaA Screenwriter

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    After digesting the news, I became very happy about it. At first, it didn't make all the sense to me, but, after thinking about it, I came to feel it's great for the health of both companies. Most of their lines will continue to be unique unto themselves, but they've entered into an arena of comraderie, not competition. I really like both companies and am glad to see them working together. IMO, this union will benefit both.
     
  3. CurtisSC

    CurtisSC Screenwriter

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    I also think it is a good move for future collaboration. But I would have hoped for some kind of product differentiation.

    Even when Honda sold the Isuzu SUV, they changed it a little cosmetically.
     
  4. MikeLi

    MikeLi Supporting Actor

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    I think that is the whole idea is to keep them the same looking. These are the lower end of the scale and most likey used for possible product loyality and future upgraditis which is great.
     
  5. CurtisSC

    CurtisSC Screenwriter

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    Right...but it is an entry level product. What would cause the customer to choose one over the other?
     
  6. Lew Crippen

    Lew Crippen Executive Producer

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    Good question Curtis. Even Mark acknowledges that ACI is the market leader in Internet speaker companies, so you would have to think that ACI has the potential to move more product that AV123.

    On the other hand, this has to be a boost to his new factory in the PRC—besides they are already making some cabinets for other companies—and the cabinetwork for the Onix speaker lines is a real competitive advantage.

    But if you have invested capital in a factory, you have to keep it busy or your per unit cost goes way up due to your fixed costs.

    ACI of course gets an already developed line that fits into a missing price point in their line.
     
  7. Brian Bunge

    Brian Bunge Producer

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    As a long time ACI fan I find this move very strange. I have seen and heard several of the Rocket speakers so I know they are great quality. But I can't help but think that this move may somewhat devalue the entire ACI line of speakers. I mean, the ELT monitors are $250/pr. while the Emeralds are $750/pr. I believe the average customer is going to wonder if there is a $500 difference in the sound of the Emeralds over the ELT's.

    Just doesn't make much sense to me.
     
  8. CurtisSC

    CurtisSC Screenwriter

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    Lew,

    Do you think ACI is better known than AV123?

    What I would like to see, a version of the Emeralds and/or Sapphires at least partly made/assembled overseas, bringing the price down maybe 25% or more. If that happens because of this relationship...then great. Others will be upset because of the possible loss of American jobs or ACI's no longer being made in the USA.

    I know for me, being an "enthusiast" I do not view the ELT as an ACI product. Now if it were tweaked in some way....then that is a different ballgame.
     
  9. MikeLi

    MikeLi Supporting Actor

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    Folks are trying to get us better products for less money and thats a good thing until it becomes a monopoly. I don't see this business decision affecting the overall high end products each company offers. Again its to get folks into an inexpensive product, create some product loyality as they will want to upgrade at some point. The main thing is to keep their product in front of the consumer. Its a good move and they can still keep their signature lines completely seperate.
     
  10. Tim Ranger

    Tim Ranger Stunt Coordinator

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    I got the newsletter this weekend. At first, I had my doubts. The more I think about it, the more sense it makes. Years ago, ACI was known for superb quality entry level products. In recent years they'e become more of a value high-end brand. The ELT could be a good way to get back some of those customers who just don't have $2500+ for an HT system. I don't think it devalues the brand at all. Heck, ACI speakers have about the best resale values out there, if you can find them used.
    As for why buying the ELT from ACI instead of AV123? Like others have said, they've been the leader for 25 years, lots of loyal customers. And, if I'm reading it right, they have really boosted the warranty from 3-5 years plus added their first year everything is totally covered deal. That would be enough for me.
    I also think it adds respect for AV123 to be associated with ACI. Should help both companies!
     
  11. MikeLi

    MikeLi Supporting Actor

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    Tim.. I think you hit the nail on the head.
     
  12. Tim Ranger

    Tim Ranger Stunt Coordinator

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    Mike, every two or three years I get lucky and say something smart[​IMG]
     
  13. Brian Bunge

    Brian Bunge Producer

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    What gets me is over the last couple of years ACI has discontinued their kits because as Mike told me, "Most audiophiles frown on the idea of their speakers also being offered as kits." or something to that affect. They've also taken strides to really move up towards more high end offerings. This just seems to contradict their actions over the last couple of years.
     
  14. Lew Crippen

    Lew Crippen Executive Producer

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  15. MikeLi

    MikeLi Supporting Actor

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  16. Tim Ranger

    Tim Ranger Stunt Coordinator

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    Mike, well maybe two-three years is optimistic[​IMG] Lew, I think you've made really good points. I know friends who love my ACIs but won't spend that much yet. I'll be surprised if a couple of them don't try the ELT. Lots of well respected companies sell different lines with vastly different pricing. Look at the range of B&W prices! It certainly works for them.

    Me, I'm saving up for Talismans[​IMG]
     
  17. Mike Dzurko

    Mike Dzurko Stunt Coordinator

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  18. Wayne Ernst

    Wayne Ernst Cinematographer

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  19. Brian Bunge

    Brian Bunge Producer

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    I guess I view it as a huge change in the ACI business model. You know the whole audiophile quality, factory direct prices, Made in the USA. For many people that's gone now. At least the Made in the USA part. It doesn't matter to me one way or the other where ACI's cabinets are built. But I'm sure it will raise questions as to why they don't just source all their cabinets in the PRC and further reduce prices. Then we could all have Emeralds for $400/pr. instead of $750/pr. Why not have the entire line built and assembled in the PRC? ACI could increase product availability, decrease costs and therefore prices, and increase profit.

    Or maybe I'm looking at this wrong. Maybe I should just view ACI as a kind of "dealer" for the ELT package and nothing more. It just seems to me that it'll go much beyond that in the long run. Whether that's good or bad is yet to be seen.
     
  20. Mike Dzurko

    Mike Dzurko Stunt Coordinator

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    Brian said:
    >>>I guess I view it as a huge change in the ACI business model. You know the whole audiophile quality, factory direct prices, Made in the USA. For many people that's gone now. At least the Made in the USA part
     

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