Question to Siri today:
Which chipset was used in the Sirius radios at the CES
2002? Was it the Agere chipset or another configuration?
The only chipset we are utilizing for production is made by Agere.
Director, Corporate Communications
Sirius Satellite Radio
1221 Avenue of the Americas
New York, NY 10020
today, where is everyone. All that's left are the poor suckers who are trying to get back to even. Just remember in a pyramid scheme, the ones who get in last, lose all. The new radios will come with a long extension cord.
Its very plausible that the consumer electronic manufacturers believe the chips meet their standards and are manufacturing radios with those chips.
The auto OEMs, other the other hand, have very extensive testing requirements that take longer than it does for the consumer electronics industry. That's one reason it takes the auto guys 3-5 years to bring a product to market.
It doesn't mean the chips don't meet OEM standards, its just that they haven't completed their normal testing.
There are clear, credible answers to all of the reasonable questions rasied by the chipset mass production delay, including what you have suggested. But they have not been put forward. Conclusion, IMO: the risk of the SIRI system not working or not working for the right price has not been removed from this stock. After running through years of their satellites' operable lives, they should be on to disabusing the other risk by now, that people will not pay for radio.
Yes, the auto guys want to take more time. But the main reason they are holding out is because they are used to gouging the car buyers by a factor of 10 to 20 for accessories. At the current prices, they are not happy about the level of profit they can attain. Yes, they have a stake in SDARS too, but they want to have the best of both worlds. Car manufacturers are the ultimate pigs.