Update

[allmodcons]

This morning I exchanged my defective 1098 w/ a brand new one through my dealer (Stereo Exchange, NYC). As stated above Rotel agreed to furnish me with a new unit to replace the one that had twice failed.

The replacement unit was also defective right out of the box. The D/A would crackle and hiss anytime a digital source was selected. A quick call to Stereo Exchange and they agreed to give me a full credit for the Rotel to be applied to another processor. For about $300 more than I paid for the Rotel I ended up with a Integra RDC 7 that was on sale down from $4500.

I remain impressed with the service I received from Rotel but am dissapointed by the quality of their product. While I have to admit that one does get an awful lot for $3K perhaps that is the problem, too many corners had to be cut to match the pricepoint. Quality control is definately not a top priority.

[Andrew Pratt]

That's really odd...it almost sounds like they have a bad shippment since no one else has had anywhere near that level of problems.

[allmodcons]

Units came from different production runs . . .

My first unit purchased in Dec 03 did not have DPL IIx and the toslink inputs had removable covers. The second unit came with DPL IIx installed and had some nifty spring loaded hatch covers for toslink.

Rotels willingness to replace the unit indicates to me that the economic model for this product was one of producing a large number of units relatively cheaply and either replacing or performing warrent repairs on units that fail; as opposed to spending more on production and quality control to insure a robust product. The fact that the unit is made in China certainly seems to support this theory.

Again, I think the 1098 is potentially a very good product but one that is let down by the manufactoring. Obviously to have the product made in Japan or even the US or Europe would increase the costs but it would, I think, make for a more reliable product.

[Howie]

You are certainly in the minority. Most folks here got keepers on the first try. I don't think your experience is the norm.

[Andrew Pratt]

The fact that the unit is made in China certainly seems to support this theory.

That's not all that fair considering that while they are made in China they're made in a Rotel owned and opperated factory..that just happens to be staffed with chinese labour

[allmodcons]

China has no minimum wage . . .

. . .and very little regulation when it comes to workers rights. Therefore Rotel and others can pay workers, even skilled ones, very little vis-a-vis workers in other countries. This is reflected positievly in both the price of the finished product and unfortunately negatively with regards to quality control.

I am not saying that quality control is lacking because the workers at Rotels factories are specifically Chinese but rather that one is dealing with an unregulated third world economic system
where mass, labor rather than skill and technique is the commodity. The Rotel factory worker could as easily have been employed by Hamilton Beach making blenders as they could making 1098's for a similar wage.

I am glad that most units in the field are working fine, you guys are getting great bang for the buck. I wish I had a similar experience. I suppose I had better head on over to the Integra forum as I no longer own a Rotel product . . .

[Howie]

Bye.

[shadow]

Your reply makes no sense unless you are implying that Rotel is using slave labor. By your logic, the more you pay an employee, the better the quality of the product. This theorom is demonstrably untrue in a variety of manufacturing venues and has been for decades (centuries?). Given the fact that only you have had the recurrent problems, its likely its isolated to the shipment in question. The implied knock on Chinese labor is reminiscent of the US attitude in the 60s and early 70s regarding Japanese products, and we know how that prejudice turned out :lol:

[allmodcons]

My answer makes perfect sense if you are at all familiar with the way that the modern worlds works.

I am not saying that Rotel is using slave labour but I am saying that they can pay less to have an item produced in China than they can in the West or even Japan. Why? because China is a virtually unregulated third world economy that has very few laws to protect workers rights, such as a minimum wage, and has a massive workforce.

Lets say that the 1098 was produced in Indiana, USA. What to you think the cost would be? Given that there is a minimum wage in the US and that there are all sorts of expenses such as local taxes, workers health insurance etc the cost would probably be double. Look at comparable products to the 1098 from North American manufacters such as Carver, Fosgate, Classe and Anthem. They cost a lot more, but take a look at the fit and finish, take a look at the attention to detail. This is the result of paying someone more because they have some skill and produce a better product. If it was not cheaper to produce in China why the hell would Rotel set up a factory there to export to the US? Why not just set up a factory in the US?

"By your logic, the more you pay an employee, the better the quality of the product. This theorom is demonstrably untrue in a variety of manufacturing venues and has been for decades (centuries?)."

Enlighten me on this one. Which manufactoring venues are you talking about? I challenge you to name a single industry where paying employees less has led to an improvment in a product.

[Mark_C.]

Just look at the athletic shoe industry. It lives off cheap labor, but no one is complaining about the quality of these (very expensive) shoes.

[allmodcons]

New Balance are generally considered the top brand in terms of product and design. They are made in the USA and they cost more than a similar shoe from other companies. But they are of better quality. Lets take a similar industry - shirts. Ben Sherman shirts used to be made exclusively in Great Britain. They where well made, durable and stylish. With the ascention of the brand from a mens specialist company to a high street mass production firm they started making their shirts abroad, in the east primerily but also in some of the emerging markets in europe. Guess what? the quality is well down. Buttons fall off, the patterns on the cuffs do not line up etc. etc. Now the shirts have come down in price and there are many more available but the fact is that they are not as good.

[MattCXII]

Although not a nice thought, I have to agree with Allmodcons. Why do you think the US is having such an issue as we speak of outsourcing US jobs overseas? Because the cheaper labour market allows them to make an often inferrior product (cheap/unskilled labour) in a third world nation for a fraction of the cost it would be to produce the same product in the US. It's pure economics. The sad part is often the increase in profit margin from the company's side often is not seen by the consumer and generally goes right into the pockets of the C/O's of the company. Rotel is not stupid. They build the product in a cheaper market to keep their costs down. Often, not always, that results in a product that is not built with the same level of quality one should demand in such an expensive piece of electronics.

One example, Arcam... good, solid built British made product. Built by skilled British labour... one fine company. I personally know they do not have the same problems that Rotel has with their units... especially in the FMJ line. They are the most solid built units I know... but who can afford them.

I have had no problems with my 1066 yet (knock on wood) and I hope to have continued success. For me, Rotel products are great... I enjoy their sound and they have given me many hours of pleasure.

All in all... Keep up the good work Rotel. :T