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Original Message

Good Points But

Posted by Dynobot on June 19, 2012 at 08:01:18:

The only thing that will determine IF CD players actualy die out is:

A new universal method that allows manufacturers/retailers to profit from selling music content in hardware form. This method must also gain wide acceptance from consumers as to show substantial profits ie. > CD player sales and hardcopy CD's. So far online sales has not been able to accomplish this alone.

Profits from CD players decrease enough to make the manufacture and sales not support a business case. Hardware components are still cheap enough to allow manufacturers/retailers to turn a profit. Unprofitable Quarter-Quarter sales will drive manufacturers to discontinue products.

For large scale manufacturers like Pioneer et.al volume is key. If volume sales are not substantial year-over-year budgets will not allow the re-purchase of components to make CD players. Profits for large scale corportations are small but are made up with volume. For the smaller firms substantial profits can still be made in niche markets with low volume/high profit [high retail cost] products. Since the technology is old parts are cheap enough to justify production on small scales.

Therefore as long as consumers have content to play on CD players and existing CD players continue to break down [eventually] there will be a need for CD players. Even IF record producers stop making CD's, the market is saturated enough with legacy copies to keep the market alive for a very long time.