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Transportation equipment industry

Apple, Carmakers Team Up to Integrate iPod into Car Audio Systems

Strategic Insights

— 2 min read

Apple Computer is collaborating with major automakers to integrate the iPod into car audio systems, making the iconic music player compatible with over 70% of new 2007 model vehicles sold in the United States. This collaboration comes as sales of iPods and other MP3 players are expected to double from 58 million units in 2005 to 132 million in 2009. Meanwhile, other companies such as Unifi and Duke Energy are experiencing improved financial results, with Unifi reducing its losses for the second consecutive year and Duke Energy reporting a 16% increase in profits.

Key Takeaways:

  • Apple is partnering with General Motors, Ford, and Mazda to integrate the iPod into car audio systems, making it compatible with over 70% of new 2007 model vehicles sold in the US.
  • Sales of iPods and other MP3 players are predicted to double from 58 million units in 2005 to 132 million in 2009, as reported by the automakers.
  • Unifi's losses have decreased for the second consecutive year, from $9 million in the same quarter a year earlier to $5.4 million.
  • Duke Energy reported a 16% increase in profits due to lower expenses and strong performances from its gas transmission, field services, and Crescent Resources businesses.
  • Investors set aside worries about inflation and interest rates to focus on mild economic data and strong retail sales.

Statistics:

  • Over 70% of new 2007 model vehicles sold in the US will be compatible with the iPod.
  • Sales of iPods and other MP3 players are expected to increase from 58 million units in 2005 to 132 million in 2009.
  • Unifi's losses decreased from $14.4 million in the 2006 fiscal year to $5.4 million for the quarter ending June 25.
  • Duke Energy's profits increased by 16% due to lower expenses and strong business performances.
  • The European Central Bank and Bank of England have raised interest rates, which may influence the Federal Reserve's decision on interest rate increases.

Sources:

  • "Byline: Staff and Wire Reports SAN JOSE, Calif. --"
  • "The Greensboro-based textile company announced Thursday a loss of $5.4 million, or 10 cents a share, for the quarter ending June 25 (1)."
  • "Carmakers say they are responding to a booming trend in which sales of iPods and other MP3 players are predicted to more than double from 58 million units in 2005 to 132 million in 2009 (2)."
  • "It's the second straight year that Unifi's bottom line has improved (3)."
  • "Duke Energy said lower expenses offset a decline in second-quarter revenue, boosting profits 16 percent in the energy conglomerate's first quarter of results since completing a takeover of Cincinnati-based Cinergy (4)."
  • "Investors set aside worries about inflation, interest NEW YORK -- Mild economic data and strong retail sales lifted stocks Thursday and helped investors overcome concerns about the Federal Reserve's expected interest rate increases next week (5)."

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