Thursday, August 03, 2006

Apple Takes On Autos As Sirius and XM Take On Wearables

Apple announced today that it has expanded it's reach in the OEM sector, making deals with GM, Ford and Mazda to offer intergration of iPod with factory installed car stereos; simultaneously, XM and Sirius are in the early stages of marketing iPod-like wearable devices.

A couple of quick points:

Presumably, iPod auto integration devices will be optional, with an associated cost to consumers, so the question is: how much will this cost relative to satellite radio? Equipment costs should be comparable, so consumers may look at "maintenance" costs, ie, monthly subscription (less than $12.95/mo unlimited content) vs song downloads at $0.99 per song, potentially thousands of dollars to fill an iPod).

Apple, through accessory manufacturers, has also had problems with the FCC regarding FM modulator strength. OEM device integration addresses this issue. Will satellite radio introduce a similar solution?

If Apple is taking on the auto market as satellite radio takes on the wearable market, is convergence on the horizon?