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What's Killing The Car Stereo Industry?

A recent NPD Group and CEA study showed that car stereo sales and other car audio equipment had a steep decline in the fourth quarter of 2007. Single CD players dropped 4 percent, amplifiers dropped 21 percent, subwoofers dropped 18 percent and speakers dropped 8 percent—all compared to the same quarter in 2006. Kenwood seems to think it was the gas prices and weather, but in all reality I think it is because aftermarket car audio is slowly becoming obsolete. Hit the jump for a poll. I certainly don't buy aftermarket audio equipment anymore and I'm curious about you.

Most new cars include enough options for in-car entertainment and information including personal navigation systems and more. Also, the current model of in car systems don't utilize the previously universal rectangular deck space in favor of other designs that are less convenient to install.

I hate to say it, but as much as I enjoy my regular Crutchfield as bathroom reading material, aftermarket audio may be experiencing its swan song as manufacturers take over and give the consumers everything they could ever want for in-car entertainment. [TWICE](Image)

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1:40 PM on Thu Feb 28 2008
By Travis Hudson
8,312 views
125 comments

Comments

  • good

  • I think that the stock equipment in most new cars has become adequate for what a lot of people want so there is no need to buy an aftermarket one. And who wants to spend thousands of dollars on it when all it takes is someone with a screwdriver 5 minutes to rip it all off?

  • Cars got harder to install on.

    Cars started having better factory stereo options

    People get tired of having thier shit stolen

    For the most part, it was a fad.

  • I kinda miss universal stereo size. As much as in car stereos and entertaiment systems have improved from the manufacturer, it's still nice to have a choice when it comes to headunits.

  • I would like to have some better sound in both of my vehicles (06 sti & 08 tacoma), but performance parts for the sti and other hobbies (mtn bike, snowboard) take precedence.

  • Image of B B at 01:47 PM on 02/28/08 *

    I put an aftermarket stereo in my car after the factory unit died. Now, if I bought a new car, I'd either get one that had a factory installed ipod adapter, or buy an aftermarket stereo.

  • Plus more cars are showing up with non-standard installation formats, as well as factory-integrated features that are difficult to replicate in the aftermarket.

    The non-brand-name stock audio in many cars is pretty good these days, and doesn't scream for update the way it did years ago.

  • I wouldn't replace a stock unit on a new car but when you buy used sometimes you need to bring it up to code so to speak.

    The near universal use of mp3s now has probably taken a big chunk of their revenue as well b/c their is no need for fancy cd changers now and most people have peripheral players like ipods so there is no point in storing your tracks in dash.

  • Image of LTDScott, Porcubimmer pilot LTDScott, Porcubimmer... at 01:52 PM on 02/28/08 *

    What everyone else said. Factory stereos are getting way better, plus many cars make it a giant pain in the ass to install a DIN sized head unit since the stereo is often integrated into the dash with the climate controls, etc.

    I would have left the factory stereo on my 02 SVT Focus alone except I wanted to play MP3 CDs. If it wasn't for that, the stock stereo with factory subwoofer was more than adequate for me, and way better sounding than any of my previous factory stereos.

  • Stock stereo is one of the things I look for in a new car. I don't want to have to upgrade it. If it accepts my iPod and sounds good I'll take it.

  • I wouldn't say the availability of more than adequate sound systems in pretty much any new car would render the car audio industry obsolete. Idiotic (in my opinion) people are always going to want to run even more retarded wattage through their subs, and there's a solid base of audiophiles who are also going to want to go all out with equalisers,, surround, sound deadening, the works - and there's a good hi-fi market out there. Will this be the end of the best-buy system though? Could very well be.

  • Image of graverobber- Two BEER minimum graverobber- Two BEER... at 01:54 PM on 02/28/08 *

    I have a double din and a 2005. I'd like to have some features that are currently lacking in the factory unit, such as better iPod connectivity and HD radio. Crutchfield remains,, in my mind, and excellent source of automotive stereo needs.

    I do remember, when I was first driving, picking up stereo stuff from places like Leo's Stereo, Federated Group, Roger's Sound Lab. So many options back then.

  • I hope these companies extinct as they put out products that do nothing but emit noise pollution. Who the hell needs a 12" sub in their car?! But morons tend to go for volume rather than quality. Let's weake up the neighbors, even if the trunk is rattling like a soup can.

    Most new cars come equipped with decent stereos, and the anti-theft feature on the factory systems are much more reliable than aftermarket. Besides, adding an aftermarket deck never looks right.

    Even Hyundais have an available sound package that comes with Infinity audio components.

  • As noted by others already, proprietary setups + new car factory units being decent enough for most folks = a declining aftermarket.

    The pitfall is that down the line when something new comes out and/or the factory unit dies, consumers don't have an easy (affordable) solution for a new unit.

  • Image of Al Navarro Al Navarro at 01:57 PM on 02/28/08 *

    It's about video and integration now...so the aftermarkets are kinda of shut out. If your radio is also the nav screen and the climate control...there's no way you're going to swap that out.

    I've said it before that in car audio is one of the silliest things imaginable. Think about what constitutes an optimal home hi-fi listening set up...speakers out from the wall, listening position centered - neither of these things are really possible in a car. You can't get truly good sound (and I'm not talking about boom and tizz audio) in a car without a ton of processing/sound steering.

  • Gee, I still have that 8-Track I mounted in my glove box. I only have one tape, Andy William's Greatest Hits.

  • It does seem as though the 'popularity' of aftermarket audio is dwindling, AND I think the industry will see a recession to the original audience for high end products, the true audiophiles that demand more than even 'bose' systems in factory setups. There is no way I will ever settle for a factory system... Never. The market will need to adjust their offerings to attract buyers again. Make something more worthwhile than the ipod, and you will draw more interest in your product. Best of luck with that - Alpine - Kenwood - Dual.

  • A big problem with car audio aftermarket is that the user experience of OEM head units continues to evolve while that of aftermarket units does not. Flashy gimmicks and long feature lists draw kids in at Best Buy, but make for cheap looking and overly complex products in daily use.

    I hate, hate my Pioneer Premier DEH-P790BT, but it's the only deck at a reasonable price with all the features I want: integrated Bluetooth, sat radio, and Ipod control. The bass control is deeper in the menu tree than the frigging dolphin screensaver control. Everything is at least one menu level deep and the tiny buttons on the face do practically nothing. Useful information like the time is tiny and unreadable on the display, to reserve screen real estate for the dolphins.

  • Image of Mad_Science Mad_Science at 02:00 PM on 02/28/08 *

    I'm probably going to spend some cash to get an AUX in in my 06 WRX. Got it used, so I didn't exactly get to pick it. From what I can tell, there's some kind of back-door hack into the wiring harness ('07s had it as an option).

    The only place I'd spend money on a new deck would be on older vehicles, of which I have 2. Sometimes mono AM with 1 speaker doesn't cut it. (And don't worry, I'll hide it under the seat or dash). That's where the aftermarket audio will go on forever: pre-2004ish vehicles that still have standardized faces or lacking features.

  • I agree with other posters, factory systems have slowly gone from suck to acceptable over the last decade. My first car, an '87 buick, had the most craptastic system and I made quite a fun hobby of installing my own system. Now, however, I have no desire to upgrade the premium audio system in my '02 WRX. Doesn't sound nearly as good as my old custom system, but still sounds pretty good.

    The only features tempting me now are HD radio reception and playing music from a USB thumbdrive. Had I an ipod, i'd be interested in a headunit that could control it, but i don't have one of those.

  • How about that car stereo is one of the most expensive forms of entertainment? Economic uncertainty usually slows down frivlous purchases pretty quickly. That, plus the switch to personal/portable entertainment (phones/ipod) all marginalize the car audio business.

    A set of MB Quart components or an ipod? Value-wise, the ipod is the better option for most people.

  • I drive a Jeep. What do I need with a stereo, I can't hear it anyway.

  • The equipment being sold with the cars today is more than adequate. The i-pod is making cd players obsolete. Ford's sync system will really make after market add ons unnecessary.

  • I haven't bought anything in years. As long as my car has a CD player I'm happy. I have a couple in the basement out of my vehicles that are gone. I keep telling myself I'll put one in my truck. Really not much need to upgrade since there haven't been in major changes in technology in the past 10-15 years. Just get an FM modulator for your MP3. Might have something to do with the fact I'm older and jus tlisten to more talk radio now too.

  • Aside from the other factors already mentioned, I think it would be interesting to look at it based on demographics. The audiophiles are far outnumbered by the conspicuous consumers that simply want to make noise and be seen doing it. The latter of these two is getting hit particularly hard by the economy right now, I'd say.

  • Have a Z4 & Nissan Frontier...both of which came with great systems and an ipod interface. No need, as long as the continue to funtion, to go after any aftermarket additions.

  • Image of Indiana Bento and the lost Temple of Citroens Indiana Bento and the... at 02:07 PM on 02/28/08 *

    I have a stock Rockford fosgate 6 CD changer unit in my Xterra. If I spent the money to have some aftermarket unit put in, its just a flag to have some guy break in and steal it. My ears are not THAT sensitive...my Stereo works just fine

  • I had to say yes because I don't buy new cars

  • I agree with the others. Factory radios have drastically improved in sound and quality along with usability. My dad's 94 Dodge Dakota came with a Sony cd-player when he bought it used, after two days of listening to him complain about the Sony, I shoehorned an '90s Delco radio that I had laying around which could handle what he wanted to listen to (AM talk radio). The factory Ford radio in my Explorer is more than up to the task of what I require of it (make decent music/noise), the Ford radio in my Contour must have been made by Kraco in the '80s as it's barely noise worthy.

    To me, usability is more important that how loud or how many dolphins to the mile I get. I want it loud enough to be heard inside but not outside.

  • I put aftermarket CD/MP3 decks in my last two cars (they were old enough that cassette was standard (1995)), but the standard stereo in my G35 is fine, not that I could feasibly replace it if I wanted to.

  • The "stock" stereo configuration in my '08 Accord is light years ahead of the $1500 set up I had in my beater car from high school 7 years ago. I wouldn't dare think of replacing it.

  • definitely. my 05 xB didn't have a iPod adapter or bass, so that needed to go in. And my string of old trucks came with crap.

  • I bought some 'replacement' speakers [pioneer] for my 1st gen neon, but otherwise, nope; haven't bought any. Probably not going to for our Jeep either. (o8 patriot)

  • Doesn't help that everything the aftermarket manufacturers put out is ugly, ugly, ugly, and that factory systems have become more and more integrated with the shape and look of the center stack. So even if the aftermarket units weren't ugly, they'd still look way out of place.

    Plus, yes, factory stuff sounds acceptable these days, and doesn't get stolen.

  • When the stock system in my car dies, I call Crutchfield every time. Whoever made my car always wants far too much of my money for a replacement unit.

  • Home. Of. The. One. Dollar. Dash. Fire!

    I have 3 DINs sitting in my garage right now. The GTO and the Tacoma setups are more than fine....now, maybe if I buy another 70-80's Jeep to abuse my self with... Again.

  • I too at one point was a hardcore audiophile.. Decades back I had a '79 E21 320i w/ Alpine 7517S head unit, $175 Denon 4x6's in the kick panels, Boston C700II plates on the rear deck all powered by a Precision Power amp.. My current ride is an E-Class and I wouldn't dare start cutting away at the door panels.. I've evolved into more of a purist.. Aftermarket has turned into crap w/ tiny chicklet buttons & that dizzying played-out blue illumination (maybe I'm just getting old) and doesn't integrate seamlessly w/ the increasingly acceptable sounding OEM congigurations.

  • I got the after market stereo for the Ipod/Audio In jack so I could stop wasting money on CD's. Id trade that for the new MyGig or similar systems though, even if it meant buying another Dodge someday. My friends new Avenger has beautiful sound in it so even bothering with an Amp and Subs doesnt really matter as much. Its too bad, really, I was just getting a few good laughs at the morons with their vibrating trunks.

  • when i bought my car used it came with an after market jvc head unit. that thing is terrible. it has this rainbow display that always flashes multiple colors any time the unit is on.

    about 3 months after i bought my car i took off the face plate for the unit and have yet to put it back on. actually i dont think ive used the stereo in my car for over a year

  • Image of DoctorNineTenths DoctorNineTenths at 02:26 PM on 02/28/08 *

    I still sometimes need to increase speaker size, get a subwoofer, or improve an amp, but changing out the headset is pointless. there is nothing on AM/FM radio that I want to listen to except NPR, the BBC or Deutsch Welle, and satellite needs special equipment. I have like 600 albums on my iPod, so screw ClearChannel. I hate those bastards. Digital radio has the potential to change my opinion, but there is very little content there. The RIAA has music so locked down, no independents can present me with the stuff I want to hear. I hope bands finally get out from under that 'label' bullshit, and start doing more direct stuff. I will support them, but not RIAA label lawyers.

  • My wife has an 07 Hyundai Elantra and believe it or not even that car has a great sounding factory stereo that will surprise the heck out of you. The bass that pumps from the 6 speaker setup you can even hear from outside the car quite well. I admit i did not expect much from it but wow!

    If I was to add anything to a car it would be on a used car of at least 7 years old and it would be a car PC, not a stupid Kenwood, Pioneer, Sony, Panasonic, Blaupunkt, Alpine, Clarion, or any of the other once selling hot brands.

  • Most of the major points have been made but to some up my views:

    *OEM car audio has closed the gap on aftermarket in terms of performance, capability and design.

    *Automakers want that revenue stream that used to go to the aftermarket, not just with electronics but custom wheels, suspensions and other systems once the sole domain of aftermarket suppliers.

    *High end audio mfrs have teamed up with automakers during the interior design phase which insures they get a portion of the revenue stream that used to go to the aftermarket (Bose is the most obvious but include Harman/Kardon, JBL, Infinity, Polk Audio, Nakamichi, Mark Levinson and others).

    *The aftermarket mfrs also design and sell electronics to the automakers in their OEM business. Alpine, Clarion and Pioneer make many of the OEM stereos we see in new cars.

    *The overly complex design of many aftermarket head units do not appeal to older consumers who want simpler, cleaner designs.

    *Integration of new technologies in new cars practically eliminates the possibility of aftermarket system expansion.

    *Aftermarket mfrs have targeted the wealthy youth market with their designs but their tastes will change as they age. Key for the aftermarket will be to spot the next in car entertainment trend.

  • Three things changed for me.

    1. as a salesman, I cannot afford to have my car betray my personal life/arrival in advance of/or with clients in my presence.

    2. break-in's -I lost a complete system, more than once. Insurance companies are a nightmare to deal with and I guess I dont want to put up the several thousand dollars a third time.

    3. I grew up.

  • People seem to be just willing to accept whatever they get, that goes for cars in general. They're more interested in tactile sensations then they are performance or many other qualifications. "Oh it comes with a DVD player for the kids, yay!" or "I can't drive that, it doesn't swaddle my butt in fine comfort". I have not yet seen an acceptable stock radio in a car, high line or otherwise.

    I'm sure the Nakamichi stuff that comes in GS4zillions is probably fine but I'm not in that market. My 2004 came with "Advanced Audio" and the first thing I did was tear out the door panels, back seats, and rear deck so I could replace the speakers. I would have replaced the CD changer too if it wasn't a goofy size (and I will eventually). Then I rewired the stock harness and patched the whole thing into a 15 year old 4 channel amp with speaker level inputs. Because I could. And the proprietary stock 160 watt ISBL rated (If Struck By Lightning) amp was woefully overrated.

    Ipod's are just tiny Walkmans, I got no use for those either. I'll rip old albums into MP3's so I can get more on a disk because the compression doesn't affect the sound TOO much but that's the only use I got for that technology.

    It's entirely possible that I'm a Luddite when it comes to sound and entertainment. I refuse to settle for little satellite speakers in my house, I still have huge overbearing 80lb front speakers with matching walnut veneer surrounds, rears, center and sub.

    I still have a huge pull-out radio that I paid $500 for in 1990. It still works and sounds better than most stuff made today so I'll continue to use it. I bought my truck with the radio delete option so I didn't have to take out the old one.

    I don't cheap out on the head unit, mid's and tweets then fill my trunk with woofers and amps. That's just fucking stupid. But dammit I want to hear some detail and stock equipment on anything I can afford is probably not going to be sufficient if I'm going to spend any time in it.

    I have to believe it's cyclical at this point. You can't sell everything at a constant rate all the time. But I could be wrong.

  • I sure do but I love my music and like to hear it cleanly. Re-did everything in my first car, but that seems common(plus car was 10 years old at that point). Door speakers blew in my SS so I shoved some alpine's in there to improve clarity and bass, but the stock 6" subs in the hatch area sounded great.

    The system in my IS300 sounds great but lacked in the bass dept., so I just built a simple free air 10" sub setup in the ski pass(which I will never use anyways). Looks nice and sounds great.

    The radio in my gf's brand new jeep cherokee looks like crap and sounds like it too... but she loves the bluetooth. I am biased as I think dodge/chrysler is pure crap though... shoulda seen the expression on my face when she went car shopping without me and comes home with a Jeep.

  • Maybe the customers grew up, or went to jail. Or back to their home country.

  • Several years ago, I put a multi-cd changer in my Miata's trunk. Don't have to worry about it getting stolen and the head unit has detachable face-plate,so I can leave it top down without worry. ( I never lock the car, rather have the crooks open the door to get my smokes than cut the top)

  • And I agree completely that the displays on many aftermarket units are way over the top and unnecessary. All the control panel needs to do is convey the status and let me tell it what I want it to do. It's not necessary to put me into epileptic seizures.

  • The stock speakers in my car weren't bad, but they weren't really what I wanted. I wanted a component setup, so I upgraded the speakers. I wanted a little more bass, so I added some subs. The factory deck's CD player died, so I added a new headunit. I'm not a huge fan of the way my aftermarket head unit looks, but it sure sounds better than the stock radio did. I had to invest in a pricey relocation harness to retain the Class II Data bus features in the factory headunit (which now sits in the trunk).