Apple eyes cars as next iPod target

Apple eyes cars as next iPod target
SAN FRANCISCO - Apple Computers is now looking at US in-car entertainment as its next prey after it revealed that it has signed agreements with Ford Motor Company, General Motors and Mazda, which sees cars manufactured by these companies providing "seamless iPod integration". The three companies account for nearly 70 percent of the car produced in United States.

Commenting on the agreements Greg Joswiak, vice president of iPod product marketing, said, "More than 70% of 2007-model US automobiles will offer iPod integration. It's hard to understate what we think this means to the way consumers enjoy audio in their cars. People want music their way, and they want access to their music everywhere. We think CDs in cars will go the way of tape decks because of this".

According to the deal, cars produced by the three companies will have a specific connection to allow drivers to plug in their iPods. Not only will there be a separate connection, it also allows drivers to use their car's multifunction controls to perform different functions such as selecting their music using artist, album, playlist or shuffle songs or easily skipping between tracks and playlists.

Doug VanDagens of Ford said that his company was doing nothing more than keeping pace with the wishes of the customers. "Consumers are listening to music, they're messaging each other, and they want to engage in all those activities in their vehicles but in a safe manner", VanDagens added.

Nancy Philippart, the executive director of General Motor's accessories division, concurred. "We really think this is going to be very big. We've been having customers ask for this for some time."
But analysts say that this agreement would hurt the audio system makers the most. This would allow drivers to listen to their own select songs rather than tune into what is being on air at that time. Craig Moffett, an analyst at Sanford Bernstein said, "The biggest loser could be terrestrial radio, because their revenue stream is directly proportional to the number of hours you listen".