iSuppli Corporation: iPod Connections Expected in More than Half of U.S.Car Models in 2009

El Segundo, Calif, Oct 09, 2008 (M2 PRESSWIRE via COMTEX) -- AAPL | Quote | Chart | News | PowerRating -- More than half of all automobile models sold in the United States next year will offer optional support for Apple Inc.'s iPod, reflecting automakers' drive to accelerate sales by offering compelling technological features, according to iSuppli Corp.

U.S.consumers for the past few years have been demanding improved connectivity between their vehicles' audio/video systems and their Portable Media Players (PMPs), particularly iPods. Automakers have responded to that demand in a big way, with 39 percent of vehicle models in the United States in 2008 expected to offer iPod integration options. In 2009, 58 percent of car models will have iPod support available from the factory, marking the first time that more than half will sport this feature. For integration with other PMPs and portable devices, automakers will offer USB interface options on one-third of all available vehicle models next year, up from just 16 percent in 2008.

The attached figure presents the availability of key technologies in U.S. auto models in 2008 and 2009.

The rising penetration of iPod and USB interfaces in motor vehicles is a part of a general effort by automakers to respond to the consumer demand for connectivity. In a recent survey of the 2009 model-year vehicles, compiled in iSuppli's Automotive Technology Availability Index, it was apparent that automakers are placing greater emphasis than ever before on technology features.

"The automotive industry is at the point where in-vehicle technologies-or the lack of them-are influencing sales," said Phil Magney, vice president of automotive research for iSuppli. "The charge toward greater technological integration has been led by car OEMs like Hyundai and Honda, which are making USB/iPod combination interfaces standard on many of their vehicles. It's also been spurred by OEMs like Audi and Mercedes, which offer integrated Media Device Gateways that allow any device imaginable to integrate with a vehicle."

Bluetooth stays red hot

Beyond iPod/USB connectivity, automakers are aggressively adopting Bluetooth wireless connections. After achieving a 55 percent availability in new U.S. vehicle models in 2008, Bluetooth will rise to 82 percent in 2009, either as standard or optional equipment.

Once a feature only found with premium brands, Bluetooth has spread into all segments. Many new implementations of Bluetooth also offer advanced voice recognition and support of streaming audio transfer.

"These days, nearly every mobile device offers some Bluetooth connectivity, whether it is simple Hands-Free Profile (HFP) or more advanced profiles like Audio/Video Remote Control Profile (AVRCP) or Advanced Audio Distribution Profile (A2DP)," said Mark Boyadjis, North American automotive analyst for iSuppli. "The influx of Bluetooth technology has blanketed the consumer electronics industry, and this is spilling over into cars."

The result is mobile device telematics solutions like Ford's Sync.

Sync offers Bluetooth hands-free phone and also supports A2DP and AVRCP for streaming recorded or live audio content. Other OEMs like Honda and Mazda are also offering optional Bluetooth solutions with the A2DP profile in their newest models, like the 2009 Acura TSX and the 2009 Mazda 6. By the end of this year, Sync will further its functionality by adding 911 Assist and Vehicle Health Report (VHR).

Hard driving hard drives

Meanwhile, iSuppli's Technology Availability Index also reports that embedded Hard Disk Drives (HDDs) used in infotainment systems will be available in nearly one-third of the 2009 model lineup, or in approximately 88 models. This trend is fueled by the increasing size of digital maps and related content along with storage for audio files. Higher-definition maps, 3D images and tens-of-millions of Points of Interest (POIs) demand HDDs with greater data capacities, even as data aggregators develop better compression methods. OEMs like Chrysler, Mercedes, Ford, Volkswagen and Nissan have responded by integrating HDDs into their current products.

Location, location, location

Another feature that is more evident in the 2009 model year is real-time, location-based content. Traffic data is an example of this as are weather conditions and fuel prices. Many OEMs have expanded real-time traffic into their products for 2009, including Ford, Volkswagen, Mercedes and GM. Satellite providers XM and Sirius have expanded their traffic coverage into more metropolitan areas and increased granularity within existing covered areas. Every car OEM in the United States has adopted some satellite technology, and several are offering the advanced location-based content. OEMs see the advantage of real-time traffic giving on-board navigation systems more daily relevance.

All Information and Intellectual Property Contained Herein is the Sole Property of iSuppli Corporation

About iSuppli Corporation

iSuppli Corporation is the global leader in technology value chain research and advisory services. iSuppli provides market intelligence services for the EMS, OEM and supplier communities in addition to servicing consumer electronics and media concerns. Services afforded by iSuppli range from electronic component research to device-specific application market forecasts, from teardown analysis to consumer electronics and from display device and systems research to multimedia content and services.

CONTACT: Jonathan Cassell, Editorial Director and Manager, Public Relations, iSuppli Corporation Tel: +1 408 654 1714 Tel: +1 408 921 3754 WWW: http://www.isuppli.com

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