Putting a WiFi option in a car radio has met with success for Kenwood, which says its DNN990HD in-dash navigation deck with WiFi ($1,500) has been one of its top 5 best-selling units in dollars for all of 2013.
A leading buyer for car audio Jim Warren of 50-store Car Toys said “I’d be surprised by 2015 CES if we didn’t see wireless embedded in the device from every supplier; and with multiple choices in carriers.”
And Parrot, which was first to embed WiFi in an Android radio, said it expects demand for WiFi radios to increase considerably over the next two years.
“Consumer demand for being connected is insatiable,” said Senior VP Consumer Electronics Dave Hoag. “People have to be connected wherever they go. So absolutely, it’s going to be huge [in the car] and continue to grow.”
But he cautions, as an industry, “where we succeed or fail is in our ability to make it a safe, easy and enjoyable experience in the car…you can drive with WiFi in the car, but it’s useless unless its safe and easy to use.”
Some suppliers are still questioning consumer acceptance for wireless radios.
The cost of adding WiFi capability or a USB port that accepts an optional 3 or 4G modem adds about $50 to $70 to the end user cost. But then there are monthly service charges from carriers, and some say consumers will shun these.
“We continue to study it. We’ve been looking at this since 2007, it’s just as of right now, we don’t feel the aftermarket will support this,” said one car radio supplier. However he notes, “It’s one of those things that can change very quickly. If we look at what the smartphone did, it took two years for the smartphone to flip our world upside down.”
Kenwood said it believes consumers are ready to accept the monthly service fees now that some carriers are offering plans that charge only an extra $10 per month for each new device. Kenwood will ship around March the DNN991HD ($1,700), shown at CES, with WiFi capability and an option for a 4G connection through a Verizon dongle.
Parrot is now planning new versions of is connected Asteroid radios and is investing “quite heavily” in the technology, according to VP Sales & Marketing Peter George.
In the end, the car makers may drive consumer demand for wireless radios, which could prompt the aftermarket to adopt them. An auto maker can hide the cost of the wireless feature and they are motivated to include it as it allows them to stay in touch with customers for service, and maintenance.
Pioneer, Alpine and Clarion said they could not comment on future products.
Source: CEoutlook
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Just one of the MANY reasons why we Partner with Kenwood and promote Excelon at such high levels. Soon every manufacturer will need to get on board, but until then, Kenwood continues to own this quickly growing and productive category.