market data was released 3 days ago showing the headphone category grew 75% Y/Y in November, then yesterday the breakdown by vendor was released which showed a good recovery by Skullcandy. Down slightly Y/Y with higher average selling price. looks good but its December that will really tell if its bottomed. All signs point to it being a very strong December.
not really dude.
There really is no substitute for wired audio quality, sure Bluetooth is OK but its not great. 15% of the market is Bluetooth headsets and earbuds. People hate running out of battery which happens all the time with wireless headsets. So will they one day become more popular , yes. Will Skullcandy release Hesh 2 in Bluetooth , yes. will anyone really care, no. Will there be cheaper chinese versions , yes. I can buy them for $8
although it hasnt been officially said you have to think the whole celebrity endorsement gig is up.
this is where the marketing spend blew out.
Basically Bose & Jawbone own the wireless speaker market, Beats sells about 1/4 of Bose. Skullcandy AIr raid is not in the market yet. Best case Wireless speaker is 10M per year revenue for Skul.
ill do some indepth annalysis of the market data next week. I just really havent been watching it in detail lately due to my lack of position in SKUL at the moment. Running away from the high price band category is a really interesting change.
Beats grew (Apr 2013 -June 2013) from 89M to (Jul-Sept) to 97M
He provided no time references or specifics on his price band reference which make me call bs on his numbers.
guidance lower for Q4, its going to be aweful
margins lower, inventory depletion and buying shelfspace for Q4
excess inventory of higher price band headphones will impact for a few quarters
Moving product focus back to lower price band earbuds
should sell off.
great post. couldn't agree more. there is very limited shelf space and its becoming more expensive so you want to drive your top sellers and focus all activities on keeping them at the top. this is where they had issues historically, too much marketing spend being diluted across too many product lines and scale your production..
i think we'll see 5'again. wouldnt rush into anything. looking at all the brands in this surf skate area and not much seems to be working. billabong, quicksilver are all having tough times.
low revenue, low asp through domestic retail. Not surprising, probably will wait until Q1 now for next opportunity. wouldnt it be great if they released a bluetooth hesh in time for holidays.