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Victor was a major force in the early 1900s phonograph business, developing groundbreaking technologies that greatly enhanced sound quality of their machines. These innovations included better horns and soundboxes as well as sophisticated acoustic-matched-impedance designs to eliminate the tinny sounds associated with older machines.
Victor was also working on an innovative machine using a large floor-standing cabinet to hold both its phonograph and its horn, as patented by Victor itself and Pooley Furniture Company was contracted to produce limited numbers.
Victor phonographs with their distinctive horn-equipped designs were an enormous hit when first released, selling out quickly after launch. But by 1924, the market for phonographs had seen dramatic decline and Victor’s financial losses had spiralled out of control.
As a result, the company started cutting prices to attract new customers; although this tactic worked, but phonograph industry had entered a period of stagnancy, leaving many unsold Victrolas sitting unsold across warehouses across America.