Has the iPod Killed the Car Stereo?
According to the Consumer Electronics Association, this year’s spending on aftermarket car stereo systems is expected to drop 28% from 2006. This includes CD changers, speakers, satellite radio and any other aftermarket add-ons. Today’s 16- to 24-year-olds are not as worried about sound quality, it seems. A recent survey stated that about 50% say the OEM-installed stereo is good enough. Hooking up an iPod to an FM transmitter is cost-effective, and music portability is most important. So what can revive the industry?
Interestingly enough, most aftermarket manufacturers are already producing iPod- and MP3-compatible systems that are usually more powerful and have more features than what comes standard in cars. They’re also relatively inexpensive. One obstacle we see is that manufacturers are designing integrated stereos into new cars. Take the Mazda3 for example. You can’t simply replace the stereo; the entire center console would have to be removed, and it would look beyond awkward with an aftermarket deck in its place. We’ll also admit that stock stereos generally sound better today than they did 10 years ago. We’d also guess that getting used to the sound of a 192 kbps MP3 — versus the higher-quality music from CDs or even 320 kbps MP3s — might make a stock stereo sound “good enough.”
Although the numbers are falling, aftermarket industry executives are predicting a rebound in the near future. We’d suggest they come up with devices that can work with existing stock systems and start marketing the benefits of better sound quality.
