DeeCandyBar
08-04-2006, 01:06 PM
SAN JOSE, Calif. In what could send some ominous signals for satellite radio providers, Apple Computer Inc. Thursday (August 3) teamed up with Ford Motor, General Motors and Mazda to deliver "seamless iPod integration" across the majority of their respective car brands and models.
The three auto makers claimed that they will make it easier for users to integrate their iPods into a car stereo system. Seamless iPod integration allows drivers to use their car's multifunction controls to select their music, according to Apple (Cupertino, Calif.).
Ford, GM and Mazda insist that they are not backing away from a somewhat rival technology: satellite radio. But major providers of satellite radio Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. are expected to greet Apple's news coolly, especially as the two radio startups continue to struggle and lose money.
But by 2007, in fact, more than 70 percent of all U.S.-based car makers will offer iPod integration. Ford and General Motors will feature iPod integration in the majority of their 2007 models in the U.S. beginning later this year, while Mazda's entire global 2007 lineup of cars and SUVs will offer iPod connectivity.
General Motors (Detroit) said that it has developed an "affordable, all-new iPod adaptor, allowing music lovers to use their iPod with the factory-installed audio system in GM vehicles, beginning this fall."
The device, called "Personal Audio Link," will sell at GM dealerships for less than $160, plus installation. It will be introduced in October on 2006 and 2007 model year Chevrolet HHRs, with more GM vehicles scheduled to be added by the end of this year. Designed specifically for the iPod, GM expects to make the device available on all of its 56 vehicle models, mostly by the end of 2007, said Nancy Philippart, executive director of GM Accessories.
"With our simple, affordable system, our customers can plug their iPod into their vehicle audio system and get what they want clear, quality sound as well as access to playlists and artists' names," said Philippart in a statement.
Rival Ford (Dearborn, Mich.) said that it is responding to the skyrocketing customer demand to bring electronic devices into cars and trucks by offering the new iPod features to its lineup.
For the 2007-model year, built-in auxiliary, audio-input jacks will be offered on the Ford Edge, Explorer, Expedition, Mustang, Fusion, Sport Trac, Ranger, F-150, Mercury Milan, Mountaineer, Lincoln MKX, Lincoln MKZ, Navigator and Lincoln Mark LT. The jacks allow customers to bring any iPod or other MP3 player with a standard 3.5 millimeter audio output into their vehicle and play it through the audio system.
In addition, early next year, Ford and Lincoln Mercury dealers throughout the U.S. will begin offering Ford's TripTunes Advanced audio system an iPod integration feature that provides drivers with top sound quality and recharging at the same time. TripTunes Advanced allows the driver to store the iPod in the vehicle's glove box and select music using the steering wheel or radio controls.
The U.S. auto makers claim they are not dropping satellite radio. Responding to another consumer trend, Ford said it is increasing the number of its vehicles with DVD-based navigation systems and Sirius satellite radio. By the 2008-model year, Ford expects to offer available Sirus satellite radio in 90 percent of Ford, Lincoln and Mercury vehicles.
Still, Apple's partnerships with Ford, GM and Mazda is a blow for satellite radio providers, which are struggling to make money. For the second quarter of 2006, XM (Washington, D.C.) last week recorded gross subscriber additions of 926,281 and net subscriber additions of 398,012. XM finished the second quarter 2006 with a total of 6,899,871 subscribers, representing a 56 percent increase over the 4,417,490 subscribers at the end of the second quarter 2005.
For the second quarter, XM reported revenue of approximately $228 million, an increase of 82 percent from the $125 million reported in the second quarter 2005. XM's net loss for the second quarter of 2006 was $229 million, compared to a net loss of $147 million during the second quarter of 2005.
The net loss for the second quarter of 2006 includes $105 million in de-leveraging and other non-operating charges that were not incurred during the second quarter of 2005.
XM still expects to achieve positive cash flow from operations for the fourth quarter 2006 and the full year 2007, although its ability to do so becomes challenging toward the lower end of the subscriber range.
Recently, rival Sirius Satellite Radio (New York) said it ended the second quarter with 4,678,207 subscribers, 158 percent higher than second quarter 2005 ending subscribers of 1,814,626. During the second quarter of 2006, Sirius added 600,460 net subscribers, a 64 percent increase over second quarter 2005 net subscriber additions of 365,931.
Total revenue for the second quarter of 2006 increased to a record $150.1 million, nearly triple last year's second quarter total revenue of $52.2 million. Sirius reported a net loss of $237.8 million, or minus $0.17 per share, for the second quarter of 2006.
For the year, total revenue is expected to hit $615 million, up from previous guidance of over $600 million. Adjusted loss from operations is expected to be $565 million, in line with previous guidance
The three auto makers claimed that they will make it easier for users to integrate their iPods into a car stereo system. Seamless iPod integration allows drivers to use their car's multifunction controls to select their music, according to Apple (Cupertino, Calif.).
Ford, GM and Mazda insist that they are not backing away from a somewhat rival technology: satellite radio. But major providers of satellite radio Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. are expected to greet Apple's news coolly, especially as the two radio startups continue to struggle and lose money.
But by 2007, in fact, more than 70 percent of all U.S.-based car makers will offer iPod integration. Ford and General Motors will feature iPod integration in the majority of their 2007 models in the U.S. beginning later this year, while Mazda's entire global 2007 lineup of cars and SUVs will offer iPod connectivity.
General Motors (Detroit) said that it has developed an "affordable, all-new iPod adaptor, allowing music lovers to use their iPod with the factory-installed audio system in GM vehicles, beginning this fall."
The device, called "Personal Audio Link," will sell at GM dealerships for less than $160, plus installation. It will be introduced in October on 2006 and 2007 model year Chevrolet HHRs, with more GM vehicles scheduled to be added by the end of this year. Designed specifically for the iPod, GM expects to make the device available on all of its 56 vehicle models, mostly by the end of 2007, said Nancy Philippart, executive director of GM Accessories.
"With our simple, affordable system, our customers can plug their iPod into their vehicle audio system and get what they want clear, quality sound as well as access to playlists and artists' names," said Philippart in a statement.
Rival Ford (Dearborn, Mich.) said that it is responding to the skyrocketing customer demand to bring electronic devices into cars and trucks by offering the new iPod features to its lineup.
For the 2007-model year, built-in auxiliary, audio-input jacks will be offered on the Ford Edge, Explorer, Expedition, Mustang, Fusion, Sport Trac, Ranger, F-150, Mercury Milan, Mountaineer, Lincoln MKX, Lincoln MKZ, Navigator and Lincoln Mark LT. The jacks allow customers to bring any iPod or other MP3 player with a standard 3.5 millimeter audio output into their vehicle and play it through the audio system.
In addition, early next year, Ford and Lincoln Mercury dealers throughout the U.S. will begin offering Ford's TripTunes Advanced audio system an iPod integration feature that provides drivers with top sound quality and recharging at the same time. TripTunes Advanced allows the driver to store the iPod in the vehicle's glove box and select music using the steering wheel or radio controls.
The U.S. auto makers claim they are not dropping satellite radio. Responding to another consumer trend, Ford said it is increasing the number of its vehicles with DVD-based navigation systems and Sirius satellite radio. By the 2008-model year, Ford expects to offer available Sirus satellite radio in 90 percent of Ford, Lincoln and Mercury vehicles.
Still, Apple's partnerships with Ford, GM and Mazda is a blow for satellite radio providers, which are struggling to make money. For the second quarter of 2006, XM (Washington, D.C.) last week recorded gross subscriber additions of 926,281 and net subscriber additions of 398,012. XM finished the second quarter 2006 with a total of 6,899,871 subscribers, representing a 56 percent increase over the 4,417,490 subscribers at the end of the second quarter 2005.
For the second quarter, XM reported revenue of approximately $228 million, an increase of 82 percent from the $125 million reported in the second quarter 2005. XM's net loss for the second quarter of 2006 was $229 million, compared to a net loss of $147 million during the second quarter of 2005.
The net loss for the second quarter of 2006 includes $105 million in de-leveraging and other non-operating charges that were not incurred during the second quarter of 2005.
XM still expects to achieve positive cash flow from operations for the fourth quarter 2006 and the full year 2007, although its ability to do so becomes challenging toward the lower end of the subscriber range.
Recently, rival Sirius Satellite Radio (New York) said it ended the second quarter with 4,678,207 subscribers, 158 percent higher than second quarter 2005 ending subscribers of 1,814,626. During the second quarter of 2006, Sirius added 600,460 net subscribers, a 64 percent increase over second quarter 2005 net subscriber additions of 365,931.
Total revenue for the second quarter of 2006 increased to a record $150.1 million, nearly triple last year's second quarter total revenue of $52.2 million. Sirius reported a net loss of $237.8 million, or minus $0.17 per share, for the second quarter of 2006.
For the year, total revenue is expected to hit $615 million, up from previous guidance of over $600 million. Adjusted loss from operations is expected to be $565 million, in line with previous guidance