January 2012 Aftermarket Car Stereo Sales Results : NPD

Iskandar Blogger 12:34 AM
January 2012 sales for aftermarket car stereo, video and navigation took a downward turn, falling 14 percent in dollars and 4 percent in units from January a year ago, according to NPD Group.*
Car speakers and amplifiers saw moderate growth in units (up 6%), but still sales in this segment were down in dollars by mid-single digits, compared to last January.
Head unit sales also felt the pinch with a 9 percent fall in units and a 14 percent drop in dollars.
NPD analyst Ben Arnold says the aftermarket still stands to benefit from two main factors.
“As the economy gets better, we can see people focusing more on their cars,” and this will include upgrading infotainment systems. He said of recession, “my hypothesis is it hits the vehicle [including the aftermarket] more than the TV.”
He also sees the continued focus on connectivity and apps in the car as lifting car audio sales.
“This is a story we talk about a lot, but I think connectivity really has the power to change some of this.  We’ve seen a greater adoption of CD players with Bluetooth and that’s an interesting step to welcoming connected digital devices in the car,” Arnold told us.
He also believes the CD player isn’t going anywhere just yet. NPD research finds that people still use their CD player, “but bringing in apps and the ability to communicate will be enhanced by some whole car connectivity. That’s an area that can really grow for this market,” Arnold said.
*These NPD figures exclude portable navigation devices (PNDs). They include:
Sirius XM (NASDAQ:SIRI) Satellite Radio Boxes
In-Dash Players
Car Stereo Speakers
Amps and Equalizers
Mobile Multimedia
CD Controllers
Fixed Navigation
Source: CEoutlook
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