Tech

Onkyo says goodbye: the famous brand of AV receivers goes bankrupt

The time goes by. Technology changes and the needs of consumers, too. when there is a technological change significant in the market, manufacturers have very few options in their hands: risk and bet on the new to have opportunities for the future or risk even more leaving everything as it is. the mythical Japanese audio brand Onkyo He took the second path, and although he has been able to ride several waves that have been put in his way, finally, this week the bankruptcy of the company after two consecutive years in losses.

Renewed or die

Yesterday we talked in this blog about the iPod. How Apple has decided to stop manufacturing them after launching them for the first time in 2001. And we also talk about MP3 players, which were the affordable alternative to these devices. But, oddly enough, there is companies like Onkyo that never managed to modernize enough to be able to compete with those products that came onto the market about 20 years ago.

Onkyo decided follow the analog path. They continued to sell those large computers that were so common in the 80s and 90s, but that were disappearing from homes with the miniaturization of technology and the digitization. However, what has ended up killing this company has been streaming music. Consumers are no longer looking for Hi-Fi equipment, but rather good headphones with which to listen to music through our smartphone.

Of course, Onkyo upgraded its equipment to support digital music services, but that change wasn’t enough to keep its business afloat. After all, most users are satisfied with a mobile phone or a computer to listen to music.

Onkyo fought until the last moment

onkyo-audio

Onkyo’s decline has been slow and also quite painful. In 2015, the company tried to become profitable and avoid bankruptcy by taking over Home Electronic Corporationsa hitherto division of Pioneer that sold AV receivers, Blu-ray players, and some somewhat more modern audiovisual products.

In 2018, the Gibson guitar brand ended up going bankrupt, one of Onkyo’s largest shareholders. The liquidation of the shares was not positive for the Japanese brand, as the shares had a considerable drop as a result of overselling. In 2021, Voxx International and Sharp Corporation they became interested in Home Electronic Corporations. In September of the same year, the breakdown of the company was completed: the joint venture of Sharp and Voxx International remained with the main business and the rest of the company ended up in the hands of a United States investment fund. Shortly before, Onkyo had already delisted from the Tokyo Stock Exchange for his negative net worth.

Finally, the worst news arrived. Last may 13thOnkyo filed for bankruptcy with a $24 million liability. Thus says goodbye to a mythical brand that did not know how to adapt to a changing market and tried to fight with what it could to cling to the analog.

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