I suspect they are going there.
http://www.engadget.com/2010/11/18/tiktok-and-lunatik-ipod-n...
Even B&W has realized this: see all their iPod speaker products. As more and more teens become twenty-somethings with a wage, I expect this product line to grow to be a significant part of B&Ws revenue.
Young people (e.g. teens) don't use CD players. A CD player for them is like LP players: a historical artifact of old generations. Most radio channels today don't have good content, and the good stuff is available over the net. So no receiver either. The only source left for many young people is the computer/iPod/iPad/iPhone.
So Apple has the Hifi solved. They're just waiting for the old generation to get that CD players should be put into the trashbin like they did with the VCR player.
I'm no audio geek, but I can easily tell the difference between CD and mp3 for some of the music I listen to. I even have a CD of Beethoven's Ninth which I've never actually listened to because the audio equipment I have can't do it justice.
Because not listening to it at all gives you more pleasure than listening to it with the best equipment you've got?
I think you should consider the possibility that you may be an audio geek after all.
Still no CD player: you let iTunes rip the CD using Apple Lossless.
Besides, you assume mp3's are 128 Kbits. When you get to 320 Kbit mp3s, most hi fi geeks can't make out the difference in blind tests. (they can always if the test isn't blind and they know which source is which – just like wine taste experiments).
Tests in which I knew what is what were completely worthless. I nearly always thought that I could tell the difference and that ability magically disappeared in blind tests.
I can tell the difference between 128 KBit/s MP3 and a CD, though.
Some resources on the topic: http://www.turnmeup.org/ Some examples: http://www.youtube.com/watch?v=3Gmex_4hreQ http://mastering-media.blogspot.com/2008/09/metallica-death-...
My advice: Spend $50-100 on a good pair of headphones, and you'll find more justice there than in hi-fi setups costing thousands of dollars.
Of course, this is 'some time' (20 years?) off, but I certainly would like to see such a store happen.
Apple did have a shot at this with the iPod Hi-Fi. It was a speaker system with an iPod dock. It didn't do too well and it was canned in 2007, a year and a half after its introduction.
- Hifi
- Printers
- TVs (being done)
Looking at mass computer categories that aren't really done yet:
- Wearable computers
Granted they're not all likely, or even probable, expansion points for Apple. But if I can think of these in 2 minutes, I'm sure the crack team of product designers at Apple can think of a lot more (before culling most of them and picking the one most sexy option).