Nakamichi
|
|
Nakamichi' is a premium audio company. It is now owned by the Grande Group, a conglomerate based in Singapore.
| Contents |
Background
Overview. Nakamichi was founded in 1948, manufacturerd portable radios, tone arms, speakers, and communications equipment, then in 1972 launched its first Nakamichi-brand products, home audio gear that included the world's first three-head cassette deck. In 1999, Nakamichi-brand SoundSpace audio and home theater audio systems, all design-oriented products that could be hung on a wall, as well as selling automotive stereo products and home theater items. Nakamichi also sells a line of higher-quality mini systems, to a market similar to that sought by Bang & Olufsen.
Details. Nakamichi is a Japanese manufacturer, originally founded in 1948 by Etsuro Nakamichi (affectionally known as "the Dragon") and later headed by his sons (the famous Nakamichi brothers, Ted and Niro), originally set up to act as an manufacturer of electric household products but quickly became known as a developer and later manufacturer of quality audio products, their cassette desks where particularly well known, but in fact the company also made some spectacular other products such as the innovative record players and DAT recorders, and the company managed to amass a brand loyalty second to none. Today they are more geared toward high quality "lifestyle" systems" a la Bang & Olufsen, but they also manufacture a range of CD changers available for Hi-fi, computer or car audio use and indeed have a big in-car audio range, unusually enough parts of that range are designed and built in the USA. The company was acquired by the Grande Holdings in the 90'a but unlike other parts of that group the Nakamichi company was run independently and with mostly the original management and design teams, company went into bankruptcy protection in 2002 but seems to have re-emerged after a reorganisation. Niro Nakamichi (http://www.niro1.com/en/moreinfo.html) who was the principal designer of the company during their golden era left the corp. in 1998 to set up Mechanical Research Corp. but Ted is apparently still with the company.
In the 1970s Nakamichi created stereo cassette decks that eventually made reel-to-reel tape recorders obsolete for consumers. Their Nakamichi 1000 cassette recorder was the finest cassette recorder made in the mid-1970s. It had three heads, high quality motors that reduced wow and flutter to new low levels, and had Dolby noise reduction to increase signal to noise ratios. Most audiophiles wanted, but few could afford the Nakamichi 1000, so Nakamichi came out with lesser models such as the Nakamichi 700, a silver instead of black version of the 1000, and the silver wedge-shaped 600.
Nakamichi pushed live recording with their Nakamichi 550, a portable cassette recorder that had three microphone inputs: one for left channel, one for right channel, and one for a center blend channel. This recorder could run from batteries or AC and was used to make very high quality recordings in the field. All of these products were all known for top-notch engineering and sound quality.
In the late 1970s Nakamichi updated their machines with the Nakamichi 1000 II, the 700 II, and other midrange and low-end models, but overall they became more complex and less reliable, and prices were raised as well. They branched out into other audio components such as amplifiers and eventually speakers, but these products were never as highly regarded by the audio community as their cassette decks were.
In the early 1980s Nakamichi came out with further refinements in a successor top-of-the-line machine, the Nakamichi 1000ZXL. Prices pushed upward again, with this machine being $3,800 at the time. The updated 700ZXL was a mere $3,000. Low-end cassette decks sold new for under $200, with the Nakamichi name on them. This time period stands as the pinnacle for cassette recorders, as from that time forward digital recording methods began to make inroads.
Notable Nakamichi products and advances
3-Head Cassette Decks Nakamichi was the first to use a 3 head recording technique. Separate tape heads were used for playback, recording, and erase, whereas prior methods combined the playback/recording function into a single tape head. The three-head mechanism optimized each head and was used on higher end decks from Nakamichi.
Missing image
Nakamichi_rx-505_brochure1.jpg
Flip-Auto Reverse. Called "UDAR" for UniDirectional Auto Reverse. Used on the Nakamichi RX series of decks. With the advent of auto-reverse (playing the tape in both directions), Nakamichi recognized that the angle of the tape passing over the playback head could not be optimized for both directions. Thus, Nakamichi developed a mechanical mechanism that would eject the tape, spin it around and reload it into the deck. This was available on all Nakamichi RX series of tape decks, i.e., the RX-202, RX-303 and RX-505.
Tape Pad Lifter. A cassette tape contains a "pad" of some type, usually made of felt. This pad is within the tape shell and opposes the magnetic head of the cassette deck, providing pressure when the tape is being played. Nakamichi's tape decks provided such accurate and precise pressure on the tape that they contained device to lift the pad so that it would not oppose the tape when it was being played back. This lifting system was unique to Nakamichi.
Nak_DragonCT.jpg
The Dragon. The top line Nakamichi products were termed the "Dragon." The Dragon tape deck used a special microprocessor controlled azimuth adjustment to implement auto-reverse, and thus didn't need to eject the tape like the RX series. Note-- the 1000ZXL II was actually more advanced and expensive than the Dragon, and is much rarer, but for some reason did not acquire the "Dragon" name. The Dragon turntable automatically adjusted for off-center holes in records. The Dragon CD playing system has special mechanical dampening to prevent vibrations of the CD, and holds multiple CDs.
Stasis Series Amplifiers. Nakamichi licensed "Stasis" technology from powerhouse amplifier manufacturer Threshold (a class A amplifier circuit by Nelson Pass, then a designer at Threshold, now at Pass Labs). This circuit was used in a line of expensive Nakamichi PA series amplifiers, such as the PA-5.
The decline of Nakamichi
Nakamichi has never held its prominent position in audio technology since that time, as they failed to move to computers, DAT, CDs and other new technologies with the same excellence that they had done with cassette recording. With the decline of analog taping, Nakamichi was unable to retain its appeal to the high end audio community. By the 1990s Nakamichi was largely forgotten.
On February 19, 2002, Nakamichi Japan announced that they were filing for bankruptcy protection. Nakamichi Corp. Japan, which filed for bankruptcy protection in District Court in Japan, is an R&D facility that is separate from Nakamichi's sales and marketing operations worldwide according to Dean Miller, the president of Nakamichi's sales and marketing arm in the U.S.
Nakamichi's sales and marketing operations are owned in full by Hong Kong's Grande Group, which also owns a 58% share of Nakamichi Corp. Grande also owns Nakamichi's manufacturing facilities. Hong Kong's Grande Group is also majority owner of Sansui, Akai and Kawa. Grande purchased majority ownership in Nakamachi Corp. in 1997. Nakamichi Corp. blamed debt as well as weak sales and declining prices for its woes. The debt might have been carried over from the previous owner.
Nakamichi's U.S. sales and marketing operation was unaffected by the move. Car audio products shown at CES will be delivered in the spring, and new home audio products will ship in the fall.The Grande Group 'will sponsor the rescue' and 'assist in the rehabilitation' of Nakamichi Corp. Nakamichi Corp. cited a calendar 2001 net loss of $22.5 million, a negative net worth of $33.2 million, and total debts of $150.7 million ($1=132.68 yen), according to Kyodo News.
Nakamichi Corporation (Nakamichi), a company listed in Japan and in which the the Grande Company holds 8,450,000 shares (approximately 8% of total shares issued by Nakamichi), applied to Tokyo District Court for Civil Restructuring Proceeding, this is similar to a U.S. Chapter 11 Bankruptcy Protection filing. The Company has made provision for its $26.4 million investment in Nakamichi.
In late November last year, the Company announced the acceptance of put option exercisable by Class A shareholders pursuant to the settlement of a major class action lawsuit in New York in 1999. The put period commenced from December 1, 2000 and ended March 30, 2001. The acceptance or put price was US fifty (50) cents per share. As the Company did not have the financial resources, in accordance with the terms of the settlement agreement, The Grande Holdings Limited (Grande), a major shareholder holding about 28% of the Common Shares of the Company at that time, honored the Put. The settlement agreement provided that, in the event that Grande was required to honor any such Put, it should be entitled to the reimbursement from the Company the costs of honoring such Put. There were 11,098,574 Class A shares outstanding. The total number of Class A shares tendered and accepted were 7,060,606 shares. After acceptance of the Class A shares Put and the conversion of all class A shares into common shares in accordance with the terms of the settlement, Grande hold about 42% of the issued and outstanding shares of the Company. Grande has notified the Company in June 2002 of its intention to ask the Company for reimbursement of the costs of honoring such Put. Accordingly, the Company has provided the cost of honoring the Put of about $5.65 million in current year results.
The Company has renewed its bank loan with Hong Kong Bank of Canada in December 2001. When Nakamichi Corporation filed for Civil Restructuring Proceeding in February 2002, Hong Kong Bank of Canada has asked Grande, and Grande has agreed, to provide other listed shares in addition to the Company's Nakamichi shares as securities for the loan. The loan was then renewed for a period of 5 years from February 1, 2002. The loan is repayable in quarterly payments of US$250,000 each plus a US$ 2 million balloon payment in February 2007.
Niro
In 2001, Niro Nakamichi, designer of many of the historic tape decks, started a new company, Mechanical Research Corporation, which introduced a number of "Niro" products. These were, ultra high end audio amplifiers, preamplifiers, and an integrated amplifier, called "engines." The products featured innovative designs and addressed issues of mechanical isolation, as well as presenting a unique appearance. (reference1 (http://niro.net/nirotek/Default.htm).) Soon thereafter, however, the "engine" products were no longer promoted and a line of home theater products was introduced. (reference2 (http://www.niro1.com/en/).) These new products attempt surround sound using very few speakers and so far have lacked high end appeal. From the different web sites and lack of available information, it is uncertain whether Niro Nakamichi has any plans to once again offer true high end proucts.
World HQ moves to Singapore in 2004
Nakamichi Corporation Limited awarded International HQ status DATE 11 Oct 2004
Speech by Mr Teo Ming Kian, Chairman, Singapore Economic Development Board, at Nakamichi International Headquarters Award Ceremony on 11 October 2004
Mr Christopher Ho, Chairman of Grande Holdings Mr Takeshi Nakamichi, President, Nakamichi Corporation Limited Distinguished guests Ladies and gentlemen Good afternoon.
1. I am delighted to be here today to present the International Headquarters Award to Nakamichi Corporation. It is particularly meaningful that this award is done at the first-ever heritage show Nakamichi is organising.
2. Nakamichi has ambitious plans to expand its operations here, adding marketing and brand management and enlarging its development and engineering team. This expansion very much parallels the growth of Singapore's consumer electronics industry - from assembly and mass production to design and development, product conceptualisation and test-bedding and global headquarters operations.
Greater Vibrancy to Singapore?s Consumer Electronics Industry
3. Nakamichi's enhanced presence here will boost the vibrancy of Singapore's consumer electronics industry. It will help to introduce more high-end audio products with innovative design and sophisticated functionality, catering to lucrative niche markets. It will add to the players already in Singapore and further enhance Singapore's attractiveness as a location for the consumer electronics industry.
4. Nakamichi's emphasis on offering stylish and sophisticated products highlights the importance of good design in products. This is a direction that EDB too is encouraging.
Nakamichi and Singapore - strong advocates of industrial design
5. I am told that Nakamichi's founder, Etsuro Nakamichi, had a dream to define the world of sound through world-class audio and communication products. He built his company around this goal and brought together the finest engineers, scientists and designers to translate his dream to reality. Today, this vision and passion to redefine sound continues to differentiate Nakamichi products from many of its competitors'.
6. Take its SoundSpace series, which was awarded the prestigious Consumer Electronics Association Innovation Award by the Industrial Designers Association of America in three out of the last four years. Another product creating waves all over the world, and of special significance to Singapore, is the Nakamichi VU29 Digital LCD Multimedia Display.
7. Designed in Singapore together with a local industrial design company, the VU29 has since won several prestigious awards, including Germany's iF product design award and the Japan G-Mark Good Design award. It is a testament to the capability and sophistication of Singapore's IT design industry.
Importance of Industrial Design for Singapore's overall competitiveness
8. Going forward, EDB is promoting industrial design in Singapore as part of our continued efforts to boost our manufacturing excellence. We will be encouraging more local companies, especially those manufacturing finished goods, to carry out more industrial design. We will also be improving the quality of industrial design education here as well as increasing the level of awareness on industrial design, to emphasise the commercial value that it can bring to businesses.
9. However, we recognise that for industrial design to be more extensively embraced by the business community, a strong creative talent pool is needed. Singapore has a highly educated international workforce which can provide the professional base for creative product designs and development. At the same time, we also welcome the presence of other creative talents to our shores.
10. This dynamic, cosmopolitan mix can help to provide important insights into the changing tastes of consumers worldwide, as well as help companies develop new business strategies and product offerings for the international market.
Conclusion
11. Nakamichi has clearly embarked on a sound investment. Its continued commitment to power its growth through products with superior aesthetics, ergonomics and functionality will help strengthen its global position. Moreover, by building on its foundation of excellence in audio performance, the company will cement its distinct identity in the competitive high-end audio marketplace.
12. We warmly welcome Nakamichi's contribution to growing Singapore's consumer electronics industry. This is only the beginning, and I look forward to many more Nakamichi products developed from this new international headquarters here.
13. I congratulate the management and staff of Nakamichi Corporation for the establishment of their Global HQ here. I thank you for your continued confidence in Singapore, and wish all of you every success ahead.
[ source: 2004 Singapore Economic Development Board]
Internal links
External links
- Nakamichi (http://www.nakamichi.com/) Nakamichi web site.
- Naks.com (http://www.naks.com/home.html) The Unofficial Nakamichi cassette deck resource.
- Pictures of Cassette Decks (http://k-nisi.hp.infoseek.co.jp/deck.htm) A Japanese language page, but containing pictures of historic cassette decks including the Nakamichi 1000ZXL, Dragon, and RX-505 mentioned above.
- [1] (http://www.enfoundation.com/charter.asp) The E. Nakamichi Foundation was established by the will of its late founder, Etsuro Nakamichi. The Foundation is dedicated to the promotion and encouragement of baroque and other fine forms of classical music.
- Engine(s) Review (http://www.onhifi.com/product/niro_engines.htm), Integrated Engine Review (http://www.onhifi.com/product/niro_1000_integrated.htm) Niro "engine" products.
- Niro Corporation (http://www.niro1.com/) Niro current web site, HT products.
- Nirotek America (http://niro.net/nirotek/Default.htm) Niro web site with "Engine" products. Not certain if this company is still active.