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Here's how they are crazy, or at least not thinking long-term

They clearly haven't done any product scenario analysis which would likely show that their policy looks good in the short-run but is very bad in the long-run.

Why? The secondary market will eventually disappear as potential buyers learn that they can't obtain authorized service or actual parts for service through an independent shop. They may be content to have different internal parts that could change the sound of the product, but they would likely be disturbed to learn that if a knob or the faceplate is scratched or worn they are SOL because it cannot be repaired. As potential buyers realize this the secondary market is destroyed due to prices coming down due to lack of buyers.

Maybe the dealer will take trade-ins if an original purchaser wants to move up the manufacturer's line. Due to the declining secondary market, and the fact that the dealer must tell a potential buyer of the used product that he (the buyer) will not be able to get service or parts for it, the dealer could offer a very low trade-in value for the unit. And the dealer may not even take trade-ins since he really needs to be honest and tell potential buyers of a used unit that they won't be able to get authorized service or parts for it. Again, an absolute disaster for cosmetic issues, which would be a dis-incentive for even non-audiophiles.

Again, with policy like this, it could be beneficial for the manufacturer in the short-run as buyers would want to go to authorized dealers for new units.

But once you buy it, you're stuck with it for life. Maybe they have a unique market. This may not be an issue for their market. Only time will tell.



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