Is the main reason audio equipment depreciates so much is

Jafant,

When I am at a audio show and looking at a ton of gear I find myself trying to figure out what it cost to make the Item. Of course it's only a guess and I don't have actually numbers. I have worked in manufacturing before and I remember what it cost for us to make a product and then seeing the product on the open market. The company I worked for was owned by my sisters husband so I had inside information on what it cost to make an item. One popular item we made in the 80's and was distributed worldwide was a fashion Item. The parts came from China but the units were assembled in Southern California. The Item cost with parts and labor included was 7.00. The retail price was 69.95. So like you said about a 10 times markup from what it cost to it's retail price.

Not always true i had Mac  Mc275 and sold it for more than 4 times what i originally paid!!!

4. Overpriced.  

But this doesn't necessarily means that a good equipment should depreciates at ridiculous prices (a sad trend on Audiogon lately).  A well built equipment should give you years of enjoyment regardless of what you paid and its current worth.  

Just saying. 

#1 on digital and #3 on everything else. With an average of 40% profit at MSRP, and most dealers will discount 10-20% so that drives the used market down to below dealer cost at resale.  In my years here on Audiogon, it seems that 50% of MSRP seems to be the place that everyone starts and then negotiates from there. I think a dealer will usually offer 20-25% of MSRP or show more but a portion of the higher trade allowance is reduced price from MSRP.
After all he must then turn around and try to make a profit at resale.
But then in the end, our hobby is not all about investment and monetary returns. So the years of enjoyment we gain from our equipment captures that investment to enjoy music and the depreciation is merely the fee of admission.