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.

Comments

Well of course sales are dropping and expected to drop, probably due to the high price of gas and the slow economy.

Also I find it cheaper to buy a head unit with way more features than upgrading to the premium system from an OEM. I am not talking top of the line head units but middle of the line type units.

First off you can search price comparison sites like bizrate.com or pricegrabber.com once you know what model you want and save some serious cash. Most of the retailers will also throw in the adapter/dash kit for your car for free.

Another main area to consider putting money into is replacing your stock speakers, personally mine never last to long anyway since I can blow them out with even the stock unit. The sound quality in OEM speakers is not all that great and switching them out for quality speakers makes a huge improvement.

Also you can go to sites like crutchfield.com and see what size speakers already come stock in your car and what sizes you can put in there without modifying your cars appearance. Crutchfield although not a very cheap retailer they give you full install instructions with everything you buy. I bought some speakers from them (since they were the only ones that sold the ones I wanted) at the same time I bought my head unit from some other retailers saving a few hundred off of MSRP and Crutchfield sent me the instructions on how to open up the dash to get to the unit as well as how to install the speakers.

Also another good tip when you buy your audio gear online but need an installer shop get quotes from a few different installers. The last time I had my head unit installed doing this saved me a couple of hundred dollars.

When my factory stereo died in my last car I used an aftermarket system to replace it and the experience was not that bad with the instructions from Crutchfield. They do a great job of giving you what you need. I do think it is harder to integrate aftermarket stereo systems in many cars now with the way the center consoles are designed, some are easier then others. Also many factory car stereos are tied into other features of your car that are not easy to keep when you go with an after market, for example steering wheel controls and OnStar. The factory systems use to be really low tier in terms of features but with our current cars I am happy with the sound quality and they have all the features I am looking for so another reason I have found not to upgrade.

My last car, a Mazda 6, had the optional Bose unit that to me was great (No aux-input though, although you could add one if you bought the "Aux-Mod" from a 3rd party which was about 60 bucks.) I'm not into big bass, but what the Bose unit put out was fine. But, like you say, the radio is so integrated that an aftermarket unit was too difficult. With that said, a cottage industry has developed which creates dash kits (see Metra) and plug and play adapters which allow you to use aftermarket regular DIN sized head units. So, you can get what you want, but you have to pay extra for it.

My current system is the middle of the line system in a 2005 SAAB 9-3. Unfortunately, SAAB has integrated it so closely that an aftermarket system is could to cost well into 4 figures. However, while its not as good as the Mazda6, the quality is fine for me, and there is an integrated aux-in port already.

Of course, what I'd REALLY like is a Sirius integrated unit, but because GM is in bed with XM, I can't get one. Maybe the merger with help though.