Linn is downsizing!

Linnofil · Post by **Linnofil** » 2007-04-19 08:12

Got this from Teatime at the Swedish forum:
http://www.eveningtimes.co.uk/news/disp ... 28.0.0.php

Is this the beginning of the end of Linn? Very sad news indeed. For the workers at Linn and for all its customers and retailers.

How will the future of Linn look like when there is no more budget products pushing the expensive products to perform better? When much of their skillful staff and developers are gone? When there is no more new customers coming in and getting hooked on the brand (tunedem listening)? What will be their new entry level? Still the Majik for CD or Unidisk 2.1? Still the Komponent (Unik) for speakers or Akurate? What will happen with 2.0, what will happen with 5.1? Knekt?

I think that Linn has way to much products for such a small brand. Do we need 6 different sub's from Linn? I think Linn should have a smaller product portfolio and carefully selected (high value) products in a wide price gap. It worked for them before.

But I also think that we live in a different world now. (Compared to the 1970'ies when Linn started.) The side of the brain that handles emotions are being pushed back. The systematic side of the brain is getting more attention, because we live in a more stressful world. We have to focus and organize ourselves to be able to cope with the modern world. Computers and constant decisions with minimum of emotions at work, computergames at home etc. Nothing really exercises the brains emotional side. There is no financial motives to do so. It's a difficult world for companies like Linn. But what are we worth as humans and as a society if this is what we are working for? What are the kind of progress we are after with all our stress and hard work? What are we really achieving, do we really want it?

Post by **lejonklou** » 2007-04-19 13:21

Hm, you sound a bit pessimistic, Linnofil. I feel quite positive.

First of all, it's hard to say what this article really means. That people are loosing jobs at Linn is of course sad for the employees, but the reorganisation is likely a good move for the company and in the end for both employees and us enthusiasts.

That Linn is not focusing on the entry level products is something Naim, Arcam and Rega must be really thankful for. And since I am developing products aimed directly towards Linn enthusiasts, I see a golden opportunity as well.

Regarding the state of the world today, there is a very strong trend towards quality instead of quantity. People save up and buy more high quality products than ever before. This applies to everything from chocolate to cars. High quality two channel stereo systems are increasingly popular at the expense of quantity-oriented multi-channel systems.

And I think just the fact that you wrote as you did indicates an increasing awareness of the effects of stress and what is really important in life.

Pediatrik · Post by **Pediatrik** » 2007-04-19 14:21

lejonklou wrote:Hm, you sound a bit pessimistic, Linnofil. I feel quite positive.

Information from a dealer-connected member of the same forum indicates that the changes at LINN indeed are going to be in a positive way for us consumers!

Linnofil · Post by **Linnofil** » 2007-04-20 15:52

lejonklou wrote:Hm, you sound a bit pessimistic, Linnofil. I feel quite positive.

First of all, it's hard to say what this article really means. That people are loosing jobs at Linn is of course sad for the employees, but the reorganisation is likely a good move for the company and in the end for both employees and us enthusiasts.

Let's hope that you are right. I had worked to 2 am the day before posting, so that may have contributed to my negative interpretation of the news... I will try to end this posting with a smile! ;)

lejonklou wrote:That Linn is not focusing on the entry level products is something Naim, Arcam and Rega must be really thankful for. And since I am developing products aimed directly towards Linn enthusiasts, I see a golden opportunity as well.

True, and I hope you succeed! Fact is that we don't know what Linn’s new(?) entry-level will be. I interpreted the news as Linn going upmarket from their present position i.e. cut down on Majik level products etc. Linn is as we know already a company quite far up on the market ladder. The reporter may have asked if Linn is going to produce any $200 products. The answer to that is pretty obvious. I do hope they still keep their cheaper speakers, such as Komponent, Unik, Diskreet etc. Since they are typical components in more expensive Knekt installations, I guess that there is hope for them. I have also seen comments by a dealer on the Swedish forum that everything most likely is a lot better than I first thought. It appears that we as customers are in for better times ahead. I hope that is true!

lejonklou wrote:Regarding the state of the world today, there is a very strong trend towards quality instead of quantity. People save up and buy more high quality products than ever before. This applies to everything from chocolate to cars. High quality two channel stereo systems are increasingly popular at the expense of quantity-oriented multi-channel systems.

I wasn't aware that there was a quality trend in audio systems (especially two-channel). My impression has been the opposite the last few years. But it's certainly time for a change! It's been long overdue. Fortunately (sometimes!) everything is (r)evolving!

lejonklou wrote:And I think just the fact that you wrote as you did indicates an increasing awareness of the effects of stress and what is really important in life.

Well, I don't want to make a your forum a political one! I was very tired, worked to hard and saw a situation where I might be denied of my music. The very blood that runs trough my veins! ;) But it is true that music gives another type of value when compared to "stuff". It is more experience and entertainment, food for the mind. Fortunately for us that very food can be indulged (almost) for free without side effects*, over and over again, once a great album has been bought! (As compared to other products in the same category.)

*Read the label on the back of your albums:
"Playing this album on a good Linn system may cause one or more of the following side effects:

1. 10-50% of users suffers from uppgraditis^ with prolonged use of this album. It will compel you to by an even better audiosystem to get more music out of this album.
The following are some tips for helping to deal with Uppgraditis.
1.1 Stay Poor.
1.2 Have a bitchin' wife with one hand on your wallet. (Simulation of #1.1)
1.3 Take up other expensive hobbies. (Results in #1.1)
1.4 Have (multiple) kids. (Results in #1.1)
1.5 Buy a house. (Results in #1.1)

2. 30-60% of users ends up recommending this album to their friends.
This side effect is planned as a bonus, no action to avoid is recommended.

3. 40-70% of users suffers from renewal costs with prolonged use of this album. It will force the user to replace styluses or lasers in their choice of player.

If side effects occur, do not stop listening or change your dose without talking to your record store or Linn dealer first."

^Note:
1: 10% of users who suffers from uppgraditis (See #1) have severe symptoms and may develop antisocial behaviour, staying home listening to music all the time and not getting enough exercise. (Right foot excluded.)

2: 50% of users who suffers from uppgraditis (See #1) have mild symptoms and may develop a salesman behaviour, trying to convince colleagues, friends and relatives that they need a new audiosystem playing better music. This can be perceived as annoying by others who are not under treatment with these type of products.

teatime · Post by **teatime** » 2007-04-20 17:27

Linnofil wrote:"Playing this album on a good Linn system may cause one or more of the following side effects:

Hahaha! Great post, Linnofil! :D

And like Lejonklou, and elsewhere, others, have said: we don't really know what this means.. and it could be a good thing. Not counting the layoffs, a change is what I want to see from Linn. I just hope it's the right one.

ThomasOK · Post by **ThomasOK** » 2007-04-21 04:15

An Interesting thread, I am glad to see the varied responses both here and on the Topica forum.

It's nice to see the optimistic side pointed out by Fredrik - I certainly don't want to stress myself out worrying about the future direction of Linn and counteracting the wonderful effects of listening to music through my Linn/ATC system. :) I also fully agree that Rega, Arcam and Naim, among others, must be very pleased with the demise of the LK series components. I know at our store Rega sales have increased substantially in the last six months. This is not just because of Linn abandoning part of the market it is also because their latest electronics and speakers are quite good products (the R1 speakers probably belong in the budget recommendations section here as they are great performers for 40% of the price of Katans). That said I must admit that sales of the Saturn would likely be less if it still had to compete with the Genki. This is sad as it means the consumer cannot get as high quality equipment in some price brackets as they could a couple of years ago.

I must also say that Linn are not alone in deciding that they cannot compete in the lower end of their market. Arcam used to have an integrated amp and a CD player for $600US each. They have discontinued the integrated amp and replaced it with a $1200 unit and the CD Player is now $750. They are phasing out their $999 and $1499 DVD players and the new lineup starts at $1699. They are also phasing out their $1599 and $1999 A/V receivers and the new lineup starts at $2199 with a model having less power than the previous $1999 model - although with better sound. Even NAD is doing the same thing - the entry level DVD player went from $299 to $399 and the entry level A/V receivers went from $699 and $999 to $799 and $1099 with minimal upgrades. So this does appear to be somewhat of a trend.

I really feel we have to wait and see what happens with the reorganization. It is obvious to most that Linn need to rethink their line and their priorities. There have been obvious missteps: the UniDisk debacle which has finally settled down, the over-concentration on A/V components when there is a public shift back towards stereo, the Komponent line of speakers which they have just reduced prices on by about 30% in hopes that somebody will start selling them, etc. And there are other problems that still need to be addressed that Linn may or may not be aware of: the inclusion of some of the worst remote controls in the world with almost all of their equipment, the slip backwards in the ergonomics of some products, the ridiculous lack of progressive scan output on the new Classik Movie assuring that it will look horrible on any TV that doesn't have a good scaler (which is all too common in the US).

And don't even get me started on their marketing. The brain trust that came up with the single buzzwords for the products: "Georgeous" Artikulats, "Audiophile" Majik components, "Stylish" Komponent speakers and "Revelation" LP12 SE upgrades should be the first on the chopping block and they can start with the idiot who decided that the SE stands for "Super Evolution" in the new LP12 upgrades. Are we trying to sell sugared breakfast cereal here, or what? How about a return to "Simply Better" and the ad with the hand grenade?

Linn have certainly shown some signs of improvement with the introduction of a new stereo line that includes a really fine preamp (the Majik Kontrol) with a very good phono stage and a very good (if not inspiring) CD player. And the LP12 SE upgrades show a renewed interest in the products that made Linn great, and the kind of engineering that we have come to expect from them.

I think the biggest question that the articles raised in all our minds is will Linn really return to their "core competencies" and make the best music reproduction equipment at a range of prices that at least start within the reach of the average music lover, or will they try to move even further upmarket by concentrating on equipment that starts above the level of a Majik/Ninka system and letting the entry level stuff fade out?

If they do the first and "return to their roots" with some new moderate price, sensible products (no four-way $1000 metal center channels please) then their return to profitability is likely as, once again, music lovers will be able to start with a musical Linn system that they can afford and can upgrade and grow with over time as their tastes and resources allow. If they do the latter and try to become strictly an ultra-expensive, boutique brand then we had best all upgrade our systems as far as we can and hope that we can find someone to fix our equipment when Linn tanks.

Lets hope they pay some attention to their customers and move in the right direction.

Pediatrik · Post by **Pediatrik** » 2007-04-21 15:58

Very wise words there indeed Thomas!

I'm not sure that LINN listens to their "old" costumers anymore, but I really do hope that they still are listening to their dealers. With feedback like yours, there should be no doubt which path they should choose in the future!

Music Lover · Post by **Music Lover** » 2007-04-22 10:05

Pediatrik wrote:Very wise words there indeed Thomas!

Agree!
Sad to read that other companies ALSO have marketing and product managers with bigger ego than brain...
Not sexy enough to sell good stuff to a great price tag I guess.
And why the bland design, product names, ads and silly prices?!?

Overall it´s good news - as Ivor is back!
I´m convinced he will address all this.

To Ivor, back to the roots please!

KingClifton · Post by **KingClifton** » 2007-04-24 06:13

Maybe Ivor needs to do what he used to do - get on a plane, fly around the world and talk to their dealers and customers. It's been years since he visited Australia. Unfortunately I didn't get into Linn until shortly after Ivor stopped these visits; he used to visit my dealer and the dealer would organise a special night for his clients.

Here is a talking point: would you like to see a new entry-level range (Genki/Kolektor/LK85-level) made in China, or no entry level at all?

Pediatrik · Post by **Pediatrik** » 2007-04-24 09:22

If LINN are going to survive for a longer period of time, I think it is absolutely crucial to have a reasonably priced entry level! LINN needs to attract new costumers who may be smitten with above described uppgraditis. These costumers stay loyal to the brand for many years and can "recruit" new costumers. Me myself started out with a entry level Basik turntable some 15 years ago and still hangs on, even if the latest developments have made me doubt if I will own LINN equipment over the next 15 year period. On the other hand, the upmarket costumers LINN have been focusing on lately are rarely loyal to one brand and i.e not an investment in the future!

Wether or not the entry level should be made in China, is all a question about quality, quality, quality! The UniDisks were made in Scotland (I think) and didn't exactly give quality a name when they were introduced...

Music Lover · Post by **Music Lover** » 2007-04-24 13:38

Agree (again)
Without entry level eq, the door is closed for many.
I also started with a basic system...

Re China, I dont care where they produce the equipment, I'm only interested of the sound quality :mrgreen:
(I also like unique design, so skip the bland AV boxes)

Post by **lejonklou** » 2007-04-24 23:26

I agree regarding entry level products; they are a necessity.

When you mention the bland AV boxes, I suddenly remembered when Linn released their first full size box: The Intek.

I was working at the local Linn store then and we almost screamed when we were shown the prototype. "It's gastly", we said, "it's like the opposite of unique". The Linn representative calmly explained that this was what the market needed: A "normal" high quality amplifier from Linn that could fit any system.

We didn't get it at all. Our view was not that a Linn product should blend in with the others. It should stand out.

Music Lover · Post by **Music Lover** » 2007-04-25 09:30

lejonklou wrote:We didn't get it at all. Our view was not that a Linn product should blend in with the others. It should stand out.

Correct!
(well, I just cant write agree one more time in this thread :roll: )

ThomasOK · Post by **ThomasOK** » 2007-04-28 05:37

We may have to change the title to "Linn has downsized!"

According to some posts over at PFM (the Pink Fish forum) the story is that Linn issued letters to all employees who are being retained at 4:15PM today. 90 employees were let go although no information so far as to which groups they belonged to. Word is that the Aston Martin contract has been cancelled as has the "tie-in" with Loewe (I assume this means the UK Loewe distribution).

If they are right the restructuring has certainly been quick and decisive. Hopefully we can get back to concentrating on the equipment and music.

I think the popular topics will quickly change as Linn are set to make some product announcements very soon that are likely to be quite popular. I can't give details yet but the latest edition of "The Source" will be coming out late in May and it will have details of several new products and other news.

I can tell you that Linn has no intention of abandoning the entry level and that they have lowered the price of the Classik components effective today. The Classik Movie is now $3470US and the Classik Music is $1875US - both substantial price decreases. I think this and the new announcements will show that Linn have not forgotten who their customers are.

Linnofil · Post by **Linnofil** » 2007-04-28 12:03

Thanks a lot Thomas, for bringing us such good news! I'm very happy that my first impression of the news has turned out wrong. May the force be with Linn! :D I feel for the emplyees who now are considered redundant, but it seems that the new direction is the wright one for Linn and (most of) their customers.

Post by **lejonklou** » 2007-04-28 16:32

Yes, it sounds very positive indeed. I think it was phrases like "wants to restructure to make its products appeal to more wealthy customers" in the Evening Times that triggered negative responses from a lot of hifi enthusiasts.

Just shows how important it is to very carefully formulate press releases and public announcements.

Linnofil · Post by **Linnofil** » 2007-04-28 19:30

Exactly Fredrik! You need to be very careful with words! But when did you see a journalist who was just that?

ThomasOK wrote:Word is that the Aston Martin contract has been cancelled

That is the only disturbing news.

Now I won't have time to save up and by the AM DB9 with a Linn system. (Although my current rate of savings suggest that I will only be able to by a used AM DB9 in about 120 years... :mrgreen: ) If you can afford it and want a car with a Linn system, place your order on Monday morning, soon it will be to late! I'm really glad that Linn is moving away from (probably) costly high profile marketing stuff and back to the enthusiast again. That is how the news look like to me. (Now)

Music Lover · Post by **Music Lover** » 2007-04-29 07:11

Regarding Aston, we should be happy for that project. It gave us the chakra amps!

Pediatrik · Post by **Pediatrik** » 2007-05-01 23:55

It seems that LINN has finally chosen a more enthusiast friendly path!:D

ThomasOK wrote:I think the popular topics will quickly change as Linn are set to make some product announcements very soon that are likely to be quite popular.

According to a post at selleri.de, an Akurate range of electronics (CD, pre-amp and tuner) might be part of those product announcements! There will also be a summer promotion this year; the hugely popular Aktiv promo! :mrgreen:

sommerfee · Post by **sommerfee** » 2007-05-02 11:00

Pediatrik wrote: According to a post at selleri.de, an Akurate range of electronics (CD, pre-amp and tuner) might be part of those product announcements!

I just got a letter from Linn, an invitation to the German hi-fi exhibition "High End 2007". They say there will show the new Klimax Aktiv for Akurate and some more big surprises regarding the topic "Akurate".

So the rumor seems to be true.

Axel

Music Lover · Post by **Music Lover** » 2007-05-02 15:18

sommerfee wrote: new Klimax Aktiv for Akurate

??
That product has been avaliable for a year or so.

Klimax Xover can be made for Akurate/Artikulat/Komri (and I guess most other speakers if you like to pay, even if they are not in the price list).

Paulinko · Post by **Paulinko** » 2007-05-02 17:52

About two months ago I asked Linn Customer Support if there exists a Klimax Tunebox for the Akurate. There reply was No. I was surprised. Do you know somebody who owns one?

Regards
Paul

Music Lover · Post by **Music Lover** » 2007-05-02 18:47

Not sure, I asked Linn a year ago and nobody had ordered it back then.
(yes, asked as I wanted feedback from another customer on the improvment vs. chakrafilters)

I also got a price upgrading Keltik Klimax Xover to Akurate spec

On the other hand...it was too expensive. Better so sell the Keltik filter and get a brand new Akurate filter...

I have learned from Lejounklou that the filters itelf are not different between "cards in a amp" or Klimax case.
Likely the special Klimax box with protection/isolation/own power unit makes the difference. (and quite a huge improvement)

When I understood that...I stopped consider active Artikulat. Better to have filters and amps separate!
Easier to upgrade as well...

If you like optimum performance, go for Klimax filters. The Akurate's going to sing :shock:
Another advantage is that you then can use Twin/Solo. WOW :!:

Pediatrik · Post by **Pediatrik** » 2007-05-03 21:03

More news about the Akurate-series:

Release-date 15/5.

Prices; Akurate CD approx 6000€, Akurate Kontrol approx 5000 € and Akurate Tuner ? €.

The CD springs from the Unidiscs, altough it is uncertain which one, and the pre-amp from Exotik.

Akurate CD is the most interesting product in my case. The difference between the Ikemi and Majik CD is too small for my taste and I almost never watch TV/films at home. 6000 € is clearly cheaper than the prices on CD12:s sold on eBay lately. I would LOVE it if the Akurate CD springs from the Uni 1.1, but it might be a bit unrealistic regarding the price.

This will be very interesting! If any one has the opportunity to actually listen to the new products I at least will be looking forward to reading the report!

ThomasOK · Post by **ThomasOK** » 2007-05-04 04:23

Haven't seen prices yet but we were told that the Akurate disc player is a UniDisk 1.1 with the video circuitry removed. It is supposed to have audio performance identical to the 1.1 and will play CDs, SACDs and DVD-Audio in stereo or multi-channel. We were told it would be priced close to the UniDisk 2.1 but possibly a bit less. It sounds like it is right up Pediatrik's alley. I think it should be a popular unit.

No real word on price/performance of the tuner but as long as it isn't too expensive I'm sure a tuner of Pekin or better quality in an AV box should do well.

The Akurate Kontrol is essentially a re-badged new Exotik, not sure if there any changes such as the inclusion of banalced ins and outs but probably not. It will have the phono stage and likely the digital 5.1 processing.

All Chakra 200 watt amps will now be renamed Akurate such as Akurate 4200, all 100 watt units will be renamed Majik (Majik 5100, etc.).

The Aktiv promo will return this summer with free Aktiv cards available with any Chakra, Majik or Akurate amps purchased. In addition there will be new mono Aktiv cards for the Keltiks and Kabers (to fit the new amps) and a Klimax Akurate 242 crossover. All should be announced by May 15th which is when the Aktiv Summer Promotion starts.