Pioneer Q1: Car Audio Navigation Sales Fall

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Pioneer Electronics’ car audio product sales fell during its recent quarter ending in June, due to lower sales of navigation system in particular.

The car audio division saw a drop in net sales of 2.4 percent to the equivalent of $818 million (79,088 million yen). But apart from navigation, other aftermarket products rose in sales including in North America. And OEM sales rose.

OEM sales accounted for 58 percent of car electronics sales, compared to 53 percent a year earlier.

Home electronics sales fell 4.6 percent compared to last year to the equivalent of $210 million (20,368 million yen) but sales of DJ equipment grew.   The home sector loss was due mainly to lower sales of optical disc drive products.

For all categories combined, Pioneer’s sales fell 2 percent for the quarter to about $1.1 billion  (109,257 million yen, compared to 111,430 million yen a year ago).   

Pioneer also widened its net income loss to the equivalent of $104 million for the quarter compared to a net loss of $28.5 million a year ago (a loss of 10,076 million yen, compared to a loss of 2,761 million yen a year ago).

The company also revised downward its expected sales for the year by 2 percent to $5.2 billion. It expects now to see a net income of $5 million for the year  (500 million yen,) instead of the previously forecast 6,000 million yen.

Pioneer stated, “In Car Electronics, we anticipate sales of consumer-market car navigation system to fall short of our initial target, reflecting weak market conditions in Japan, and sales of car audio product overseas, mainly in emerging markets, to miss our initial target.”

Source: Pioneer Electronics

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2 Comments

  1. Maybe this has something to do with the fact that Pioneer shot themselves in the foot, by introducing 3 new Navigation models back in April, which are damn near unusable right out of the box, because “they” chose to make an engineering change, and delete the standard USB and 3.5MM Aux cable from the unit.

    Then they compounded THAT blunder by making 3 different add-on kits, which are confusing as hell for customers to understand which one they need, at an additional $50-60, PLUS extra cables if you have an iPhone 5/iPod with lightning adapter, that must be purchased from Apple.

    I have sold Pioneer Navigation systems for the past 13 years as my number one sellers, many in OEM integrations at car dealerships for new cars, but I’ve had two AVIC-Z150BH’s sitting on my shelves for the past 3 months, and absolutely no customer interest in such a confusing, and by choosing one adapter cable set, LIMITING piece of hardware.

    Get smart Pioneer, I bitched about it 4 months ago, bring back the standard USB/3.5mm auxiliary cable from the prior Z120/130/140 series, so we have a “universal” product that we can sell again…

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