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Skullcandy, Inc. Message Board

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  • chaz16669 chaz16669 Feb 9, 2013 4:41 PM Flag

    Beats discounting

    My concern would be that Beats is low balling to retain market share and taking away Skul sales.

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    • Hey Chaz,

      It scares me a little too...

      I actually thought about the Shoko thing a little more... Shopko is a deep discount chain. Skullcandy is not in there (except 2XL). The client base are bargain shoppers. I suspect Beats (in this case) can't sell into this low end market.

      What I mean about consolidation is that there are only so many kids that can afford 250-499 headphones.

      I was reading Koss's analysis of the market from their filing in 2011. At that point they already had stated 2 interesting things.

      They noted that there was a noticeable shift of sales away from the holiday's as ear phones were becoming more of a disposable item.


      The above is evidenced by the influx of mobile devices.

      This was already noted for the period 2009-2010

      Beats in particular are 1 off consumers. Get their high end set (w/quality issues for that price range) wear them heavily (w/mobile devices) break them, and get upset and some go back into a less expensive option (Less expensive over ear or a pair of buds).

      Bose and other high end sets are not designed for that kind of wear and tear. They are for home use with a stereo. Not for the slopes or active use. You pack them up in a case, cherish them.

      Just some thoughts here. Skullcandy has hit the sports lifestyle crowd. The earbuds and cassette style fits well there with the abuse and fit needed for active use.

    • Beats are mostly in a much higher price range. Even at the 30% off sales we keep hearing about for beats, if you spend a lot of time in stores, it gets harder to see the combat between the two brands that analysts are talking about.

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