Let's face it... Most semi-automatics and full automatics were mass-manufactured in Japan as affordable mid-fi products to appeal to the average consumer. Many were available in the sub $400 price range, and you have to figure that a big portion of that cost went into engineering and manufacturing those little intricacies of the automation. So a full-auto TT priced at $400 would probably have been built with similar "bones" to that of a $200 manual TT of comparable design.
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"Better" depends completely on application. ...And personal preference. There is an appropriate place for both automation, and clinical perfection alike.
Hmmmmm.
I highly doubt that fully half of the design costs go into the automation needed to add automatic features. Also, depending on the profit margin, a table selling for MSRP of $400 might cost anywhere from $200-$350 to build. Larger companies could (and can) afford to make slimmer margins in a competitive marketplace by spreading R&D and development costs over more product.
Add onto that the fact that many tables that are automatic had manual brethren that lacked the automation, and you can see how much or how little automation probably added to the company's bottom-line. In fact, companies like Apple will often offer these extras with a higher percentage mark-up as you move up the chain. A basic iPhone with 16 GB of storage costs $199, while the model with 64 GB of storage costs $399. However, Apple does not pay $200 more for the extra parts. Instead, the profit margin on the added storage space is higher. The justification is that people willing to fork over the higher price for the extra space can afford to pad the margins a bit more as well. This almost certainly happened with turntables as well.
The price difference between a 1600MK2 and an 1800MK2 in 1979 was $100, with the semi-auto 1700MK2 priced directly in the middle. Considering the 1600 uses a nearly identical motor to the venerable 1200, it benefits from the investment costs associated with that other turntable. More of the R&D probably went into the suspension system that is unique to that line of tables and the Quartz-lock, which virtually eliminated wow & flutter. However, even if we take your argument at face value and assume that ALL R&D costs were recouped in the sale of these tables alone, that still leaves a price difference of at most 25% for the feature. At most. Likely, as with iPhones today, the production price was much closer and the margins for the upper model much higher. And in any case, you still get a fully automatic table that sounds equally awesome to the 1800MK2, which is absolutely no slouch in the SQ department.
But as you said, the market adjusts. You're certainly right that a lot of cheap junk was produced because people bought more and more cheap junk. And today the market for high-end tables is dominated by folks who want totally manual decks. Whether that's because of engineering limitations or because a lot of people have a false belief that manuals sound better...well, I leave other people to make that determination for themselves. But the market makes what sells, and high-end folks buy manual tables (much to my chagrin).
HOWEVER, your final point about
better being relative and closer to preference than technical superiority is spot-on. I wouldn't necessarily put the two at odds (one could argue that they actually work towards one another rather than against each other), but this is not a zero sum game. If other people love their manual tables, they are free to do so. That just leaves more auto decks for me to find!
Cheers!