Monday, November 30, 2015

3 of Every 4 New Cars Has A SiriusXM Radio

Among the more noteworthy numbers Sirius XM had to report in its third-quarter earnings call on Oct. 22 was its penetration rate in new cars -- the number that tells us how many new cars roll off the assembly line with a satellite radio installed. It now stands at 75%.

That's a particularly notable number because it's higher than Sirius executives had thought it would be at this stage and as high as they've said it will likely reach. In fact, the third-quarter penetration rate was up nearly four percentage points from the corresponding quarter a year earlier.

According to The Motley Fool, Industry forecasts call for about 17 million new cars to be sold this year, which means Sirius XM satellite technology should find its way into nearly 13 million new cars this year. The company figures its technology is installed in some 79 million cars on the road today, or nearly a third of the cars in the U.S.

That so many auto manufacturers recognize the value of equipping their vehicles with satellite radio technology is good news for Sirius XM and its investors -- and CEO James Meyer called it "a strong indicator that satellite radio is a must-have feature for most cars sold in the United States."

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