The Edison company
had compete with cheap cylinder machines the mass market
and found their more affluent customers choosing disc
phonographs. 1908 Edison replaced Gilmore with Frank Dyer.
Competition increased steadily the twentieth century more
companies entered the phonograph market. Foreign manufacturers
quickly flooded Europe with cheap phonographs and threatened
the American market. Even after the 1907 downturn was over, sluggish
sales and high inventories continued hurt the company.
More problems followed.VIII-22
of 1907; they embrace the broad development the phonograph
industry from 1900 and the changing tastes its customers.
Sales the Edison cylinder machine decreased rapidly while
the disc machines marketed its competitors were rapidly
. They
claimed that they had been illegally deprived their
franchises Edison's manipulation various phonograph
companies.
Business remained poor 1909 and the Edison dealers were
becoming restless. There was blue sky the horizon. The franchisees the now
defunct North American Phonograph Company sued Edison for a
share the profits phonographs sold their areas. The introduction the disc phonograph
challenged the cylinder machine everywhere. court case dragged from 1908 1909 and was
decided favor the franchisees who won $425,000 in
damages. Business and profits had still not returned
to Edison's phonograph enterprise 1910 and the National
Phonograph Company had quell rumors that Edison was getting
35
out the business
