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We've been in contact with AKG and they have this official response to distribute to the group:
“In the midst of overwhelming positive feedback, we have recently learned that a very small number of Massdrop customers have reported some issues with their AKG / Massdrop Exclusive K7XX headphones. Though we are surprised to hear this due to our rigorous engineering, manufacturing, and quality control processes, we take your feedback very seriously and are now collecting data to determine what — if any — factors may have contributed to the unsatisfactory reports from some customers. Please be assured that we are working with all deliberate speed and that we will have a solution for you shortly. We will post updates here as available. As our offices in the U.S. and our engineering center in Vienna, Austria are currently closed for the holidays, we ask for your patience as we work toward resolution.
We at AKG are very excited by the K7XX as it represents a very unique collaboration between one of the most respected brands in the audio business, Massdrop, and you — the audiophile community. This is as much your product as it is ours and we are gratified by the early positive feedback and the hundreds of users who have already written to tell us how much they love the K7XX!
Best regards and happy holidays,
Vice President, Worldwide Sales, AKG Acoustics.”
I don't expect to hear anything until January 7th at the earliest but will remain active in the discussion if you guys have any follow up questions.
Thanks for the update, will keep an eye out.