Yamaha Keyboards (4 Boards) > The Next Yamaha Keyboard

Yamaha out of the arranger business?

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Joe H:

--- Quote from: pjd on April 19, 2017, 01:32:33 PM ---Source: NAMM Global Report 2015


Sales Statistics for 2014, USA market

    Category                       Units            Retail value
    -----------------------------  ---------------  -------------
    Acoustic guitars               1,499,000 units  $678,000,000
    Electric guitars               1,132,000 units  $506,000,000
    Digital pianos                   135,000 units  $165,000,000
    Keyboard synthesizers             81,000 units  $104,000,000
    Controller keyboards             160,000 units  $ 32,000,000
    Portable keyboards under $199    656,000 units  $ 64,000,000
    Portable keyboards over $199     350,000 units  $123,000,000
    Total portable keyboards       1,006,000 units  $187,000,000


Music technology blog: http://sandsoftwaresound.net/

--- End quote ---

Nothing like getting the facts... though the table above does not reflect individual and regional markets.  Where I live low-end gear sells very well because there is a lot of low income folk.

Joe H

DrakeM:
wow .. looks like there is no demand for Controller keyboards or Keyboard synthesizers from those stats.

browzer:

--- Quote from: pjd on April 19, 2017, 01:32:33 PM ---Source: NAMM Global Report 2015


Sales Statistics for 2014, USA market

    Category                       Units            Retail value
    -----------------------------  ---------------  -------------
    Portable keyboards under $199    656,000 units  $ 64,000,000
    Portable keyboards over $199     350,000 units  $123,000,000


--- End quote ---

Almost half of the units shifted but double the retail value, how do these figures equate with regards to profit?

Ronnie

SeaGtGruff:

--- Quote from: pjd on April 19, 2017, 01:32:33 PM ---
    Portable keyboards under $199    656,000 units  $ 64,000,000
    Portable keyboards over $199     350,000 units  $123,000,000
    Total portable keyboards       1,006,000 units  $187,000,000

--- End quote ---

I wish they had broken the sales down by more than just "under $199" and "over $199," because surely there are a lot more models in the "over $199" category than in the "under $199"-- and much greater variation in their prices, which makes the following averages kind of useless. Also, why have the arrangers and workstations been lumped in with the portables, if Yamaha's web site splits them up into separate categories? And what are the lines that determine whether a particular model gets counted as a "digital piano" or a "portable keyboard"?

Anyway, here are the averages:


    Portable keyboards under $199    656,000 units  $ 64,000,000     (ca. $ 97.56 per unit)
    Portable keyboards over $199     350,000 units  $123,000,000     (ca. $351.43 per unit)
    Total portable keyboards       1,006,000 units  $187,000,000     (ca. $185.88 per unit)


The average for the "under $199" category looks about right, because if we put an *** before you and me, and assume that the sales were evenly distributed between models of different prices, and if the range of prices is from $1 to $199, then the average price should be $100. The fact that the average is actually a little below this seems to indicate that models under $99 slightly outsell models over $99-- although that also depends heavily on the actual prices, because if we assume that there are only two models in this category, the PSR-E2xx and the PSR-E3xx (which is surely not true), then the PSR-E2xx is selling like hotcakes whereas the PSR-E3xx isn't moving at all.

Calculating in reverse with the same assumption of evenly-distributed sales, if the models in the "over $199" category have an average unit price of about $350, and if the price range is from $200 to whatever, then "whatever" works out to be just $500! That's obviously wrong, since there are quite a few models in the "over $499" category, not to mention "over $999." So clearly the sales are heavily skewed toward the "under $499" category, and are all but non-existent in the "over $499" category-- in which case, Yamaha would be well-advised to cease all development and production related to the PSR-S and Tyros lines! :o

pjd:
Hi --

Folks, this is marketing. Abandon hope all ye who enter here. :-)

I think you're looking for precision when you're probably not going to get it. These numbers are reported to the NAMM by retailers, not manufacturers. This leaves the definition of each product category pretty much up for grabs -- possibly defined in the eyes of a guitar player, not a keyboard-oriented musician.

NAMM is a USA-based association which reflects the biases of merchants in the USA. Here are a two quotes about "portable keyboards" from earlier reports:

"The tonal quality and feature set of these 'entry-level' products rival 'pro' keyboards of a decade ago, and they have eroded synth sales. They can often be found on stage in performing venues. Lower-priced keyboards, those retailing for less than $199, are sold almost exclusively through a mass distribution channel. With an average retail selling price of $92, they have almost become impulse purchases."

"Tonal quality is a byproduct of processor speed and memory: more processing and memory make for more complex and nuanced sounds. The collapsing prices of memory and processing power have made it possible to equip what were formerly considered 'cheap' musical toys with tremendous tone quality and features. All evidence suggests that these comparatively low-cost products have taken sales from higher-end digital pianos, keyboard synthesizers, and even acoustic pianos."

Mass distribution channels include big box stores like Walmart, Target, etc.

Michael, I think you're right. It is a challenge for Yamaha, Korg, Roland, and so forth to actually make money from arranger keyboards. The margin on what we regard as entry-level models, especially, is razor thin. Overall, that's why it's unreasonable to expect new revolutionary instruments with every spin.

Interesting discussion, folks. Thanks for all of your comments!

-- pj

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