In this age of music file downloads and comparatively cheap MP3 players the word Hi Fi seems to be fast disappearing from the vocabulary of thousands of people. The word Wi Fi and web are more prominent.

 You probably won't find too many people with $2,000 Creek amplifiers in their bedrooms. And they can't slip a 10 kilo, $3,000 Arcam CD player/radio in a jacket pocket. Cost and convenience — not to mention the "cool" factor — are likely why more than 30 per cent of all Australian households now have portable MP3 players or iPods, according to a recent research report. This is identical to Canada where the Yankee Group recently conducted a major study of Hi Fi and iPod sales. The fact is that anything iPod is very saleable. Plus, Apple just released its iPod Hi-Fi compact sound system with iPod dock. On Apple's website, the system sells for $539 and promises "rich, audiophile-quality sound. ... Also Hi Fi Companies like Jaemo and Harman Kardon are jumping on the iPod bandwagon with stunning iPod accessories. Goodbye, big stereo and the word Hi Fi.

 In the U.S. last year, retail sales of home audio equipment, including stereo system components, fell nearly 18 per cent to 10.2 million units, while sales of iPods and other portable digital players rocketed up from about 7 million units in 2004 to 19 million, according to research by New York firm NPD Group.

All of which only makes the owner of hi fi for fun more determined to be the little guy. "You got to sit back and draw a line in the sand," says one CEDIA member, who opened a store some years ago after working in several other peoples hi-fi stores. "This pie is small but there's a lot less guys doing it. Not everyone is going to understand it or want it. But I have got to give it a shot."

Over at Wicked Digital in Neutral Bay on Sydney's North Shore business is booming both online and in store and while they sell Hi Fi they also sell bucket loads of iPod related gear. There thinking is: More iPods mean more people listening to music. So can you survive in this space and still be a specialist. The answer is yes. Do the homework. Call your distributors, talk to the people making the systems. Be prepared to know more than the savvy consumer who today researches online before walking in the store.

So is there hope for Hi Fi? There is according to the recent Yankee research report in Canada. For in addition to finding the obvious trend of MP3 players on the rise, they also found that Canadian households with two or more portable MP3 players are more likely to own one or two stereo systems than none at all. We think the same applies in Australia. We will tell you when we have conducted a new SmartHouse survey.