sat radio will be priced in as an option like power windows or heated seats into almost all future autos......it'll cost say $850 for the radio equipment along with a lifetime membership with sirius (say $400 for the membership and another $450 for the headunit, antenna etc...). In the future most cars will come with sat radio and what will people say, rip out the sat radio i don't want it??? i think not...it'll be like saying i don't want power windows, take them out and give me the windows that roll up by hand, that's just ridiculous....whether people like it or not or listen to it or not, sat radio will be pre-installed in new cars, like selling ice cream to kids....finally, whose going to buy a car that costs over $30,000 (most cars do these days) and say buy the way, rip out that sat radio???? this will be big folks, you just have to have the vision like i do...i know its going to happen and i'm long over 100,000 shares (accumulated that much by writing covered calls at $2.50 strike price for january '04 and pyramiding the stock buys)...i hope i don't get called because i really want to hold on to ALL my shares....i probably won't write covered calls at such a low strike price again.
Well said. Yet do you know what you said!? We all love these aftermarket pioneer/sony/kenwood radios as anyone can tell by how well they sell. Then why aren't they factory installed?
1. OEMs insist on taking most of the profits, while Sony/pioneer/etc. are used to getting them.
Why wont they be standard?
2. This increases the price of the 'track vehicle' which is used for advertising.
To expand on #2
a. The head unit is expensive.
b. The wiring is not free.
c. Antennas require special wiring which is expensive.
Customer demand will drive what changes from option to standard. Once the option exceeds ~70% it can be cheaper for OEMs to make it a standard. They still won't like lifting the cost of the track model.
I am an automotive systems engineer. Each wire you can say costs ~$0.23. If you add 10 wires to the car, thats $2.30 * 200,000 vehicles, thats $460,000. This is how the OEMs will count. And thats just wiring, not head units, connectors, install labor, logistics, engineering. Plus antenna wiring is much more expensive.
They will not be jolly about the $$$.
I dont own any SIRI stock, and am considering wether or not to believe the hype here and purchase a few K on a dip before 8/6.
Ford and any auto maker who owns shares of SIRI would be smart to factory install the systems and offering incentives to subscribe. They would be increasing the value of a company they have a stake in. I can not imagine they won't do it.
Wooooooooooah there. No need to be nasty. Are you always like this when people don't agree with you? So quick to beat up on someone who doesn't say something you want to hear. Sorry, but that's how life is.
LOL!!! Thats a great post. Especially the part where you say " Rip out the power windows. I wan the roll up ones"
SIRI will be sitting at $5/share at year end to march 2004. Too bad I only have 1,000 shares.
Not necessarily, you stull get the regular Am and FM on the units so nothing has to be ripped out. the can just choos not to sign up for service. And from the looks of it the Sat units don't appear to be more expensive than regular units.
who is going to buy a new beamer with all the sat radio hardware installed and say i can't afford the $400 lifetime membership??? i'd say hardly any, everyone will pay the measly 400 bucks for the lifetime membership, wouldn't you...its a no brainer, money in the bank kids......watch and learn...see you at Atlantis in 2012 and i'll be a multi millionaire by then off of this stock