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Strategy Analytics: Automotive Connectivity Device Rates Soar

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BOSTON, Sept. 17, 2008 - According to Strategy Analytics, 73% of new cars and light vehicles produced will have Bluetooth with USB by 2015. The study, "Vehicle-Device Connectivity: Mainstream Products Have Arrived, Software is Critical Cost Challenge," highlights the rapid growth in availability and adoption of automotive connectivity products in mainstream car markets, led by Ford, Fiat, Chrysler and Honda.

Hands-free, digital music and in-vehicle recharging applications and vehicle-device products that are well-positioned to market at optimum price points will support mainstream growth. Emerging connectivity solutions will focus on iPhones, music and location-enabled smartphones, and Bluetooth A2DP.

According to Joanne Blight, Director in the Strategy Analytics Automotive Practice and the reports author, Our studies show the optimum target price point for vehicle-device solutions is in the $200-300 range, and the rapid success of Ford SYNC, Fiat Blue&Me and others is because they meet the simple hands-free and music playing requirements of consumers at prices they are happy to pay. Blight also notes, Systems-based connectivity solutions are just not competing. Its like watching in-vehicle navigation all over again once portable navigation devices hit the market.

"Software integration, HMI and the capability of vehicle-device interfacing products to support an ever-growing list of devices and device functions is the critical cost challenge moving forward. New automotive partnerships in the supply chain are essential to lower product development costs," adds Chris Webber, Automotive Vice President at Strategy Analytics.