By Brandon Matthews
Yesterday, I was privileged to attend Sirius XM Radio’s (SIRI) new hardware unveiling at the Sirius XM studio’s in New York. The new radio lineup offers a host of products that are sure to top Christmas wish lists this year. There were actually FIVE new offerings presented yesterday, and I can attest that when these devices are displayed later this year in stores such as Best Buy, Radio Shack, Wal-Mart and in the case of the XM Skydock in Apple’s (AAPL) own iStores, they will quickly sell out. The radio’s presented include the XM Skydock, XM Onyx, XM RCi, Sirius Stratus 6 and the Sirius TTR1. I have included the product highlight flyers link at the end of this review.
XM Skydock
The Skydock was certainly the highlight of the show. Although much has been written already about the dock, it is not until you actually have a chance to see the device and use the device that its capabilities can be truly appreciated. A soon to be released free app from the Apple’s iTunes will enable nearly 10 million existing iPhones and nearly 30 million iPod Touch’s to be instantly converted into a full fledged satellite radio. With a subscription to XM and the Best of Sirius package, users of these 40 million devices will be able to enjoy everything that Satellite Radio has to offer. It’s important to remember that OEM penetration rates of satellite radios in new vehicles has averaged about 50% over the years, which leaves millions of new car owners without satellite radio’s. The ease of the Skydock’s installation will certainly appeal to everyone.
Featuring a disp
lay that automatically adjusts for portrait or landscape view, the device allows users to select up to 12 of their favorite channels for easy searching. A simple touch of the screen allows users to “TAG” a song which can later be downloaded for purchase through iTunes, or it can be saved as a favorite by song or artist, which will alert the user whenever that song or artist is being played on any channel in the Sirius XM lineup.
The display also allows users to enter sport’s team names and stock symbols, which will then allow scores and stock quotes to be scrolled along the bottom of the display. Priced below $120, the XM Skydock is sure to be one of this years most requested holiday gifts.
Sirius TTR1
My second favorite radio of the presentation, and yet the one I have the greatest personal potential benefit from, is this new tabletop Internet radio, that can work through either a hardwired Internet connection or get this….any wireless connection! This Wi-FI radio can be placed just about anywhere that a wireless Internet connection exists, no computer required! Although marketed for home use, this radio can function just as well in a work environment which does not give employees access to computers…. Restaurants and auto shops come quickly to mind as examples. Suggested MSRP is a reasonable $149.00.
Sirius Stratus 6
The perfect entry level de
vice for those on a budget or those who prefer to listen to just music, the Sirius Stratus 6 is “A La Carte” enabled, yet allows for the full breadth of Satellite radio offerings as well. This plug and play radio, like all of the portable car radio’s presented, utilizes the revolutionary new XM PowerConnect Transmitter, which works through the vehicles own radio. With a suggested MSRP of $69, this radio makes an ideal sub $100 gift, leaving plenty of room for an initial reduced price A La Carte subscription to be included. Optional accessories include a home docking station and portable boom box also, allowing for portability with just one device.
XM Onyx
A bold new offering which features a full color display, color personalization that can match any cars dash light configuration and also includes the new XM PowerConnect technology, “song seek,” and optional home dock and portable boombox.
XM Express RCi
Not included in any of the press releases, the XM Express RCi is an adaption of the XM Express, which now features XM’s new PowerConnect technology, significantly improving the quality of sound from this entry level XM Radio device.
To View all of the device features above, click HERE!
Position: Long SIRI
Nice product review Brandon! With good 3Q results this should give the 4Q some extra oomph! I was worried that with all the cash for clunkers auto sales taking away some 4Q auto sales that the 4Q numbers for Sirius would be down somewhat but this new product lineup will certainly offset it.
I am confused by some of the reports suggesting the skydock works through the car’s electrical system via the cigarette lighter, while others suggest an XM transmitter? Do they mean an fm transmitter so that the audio can be transferred wirelessly, or is there something actually called an XM transmitter? If it is an fm transmitter, then how is it any different than any other fm transmitter that I could get for 20 or 30 dollars. Is the sound transfer any better than what has been around for the past few years? I get the fact that the skydock’s primary function is to make the iphone a sat receiver, but in the absence of an auxillary input, is the only option for the skydock fm transmission of the audio signal? If so, I don’t know how many people will pay $120 for the dock, extra for a subscription, but still endure a fuzzy audio signal. I wont. I drive a 2005 Lexus with no auxiliary (the forward thinking at Lexus still includes a cassette player though). I am sure there are many without auxiliary inputs that wont find an fm transmitter acceptable quality. Please someone help clarify this confusion. Not so surprisingly, there is absolutely no information on SIRIUS’ website about this forthcoming product release, nor specifics on the product itself. Great forward thinking there as well.
Brandon:
Please clarify some of my confusion above. Even in your article you merely mention the “ease of installation” with no specifics. If it simply plugs into the cigarette lighter, with an fm transmitter or audio auxiliary transferring the audio signal, then there is ostensibly no installation, just plug and play. I really wish a company that has the where-with-all to put satellites into orbit could be more adept at communicating to their current and potential client base. I respect many here with their knowledge of the market, and intricacies of trading and analysis, but sometimes the necessary message gets lost or brushed aside much to the demise of the bottom line.
I concur, Brandon – an excellent product review and certainly evidence that Sirius XM has become much more innovative and responsive to market potential. This lineup of new products is really superb and sure to enhance top line revenues in coming months and years. The relationship with Apple should continue to benefit both companies and joint product development into the future should continue to reinforce positive expectations for SIRI. The stock continues to trade from dominant strength and psychology should remain positive into the November release of 3rd Qtr. earnings and guidance. The dual influences of auto resurgence and new wireless device expansion should remain the dominant factors in investor thinking with regard to upside potential for SIRI. Both of these factors show tremendous potential for subscriber expansion in coming years and SIRI – below 1.00 – remains an opportunity for institutions to get aboard early in the game. Current backing and filling for consolidation of gains along the way has been constructive – and carried out in a way that affirms technical strength (only limited pullbacks while moving averages rise toward current share price levels). Shorts have every reason to remain highly nervous over this action – as their losses from last March (estimated to be in excess of $74 million – based upon released short interest figures and price performance since that time) now continue to grow almost daily. We can expect to see the usual “bashers” and TV flacks try to pressure SIRI to assist their institional benefactors who remain short – but investors are now seeing the true demand for SIRI over an expanding array of platforms and this should override any nervousness caused by the negative articles from the usual suspects.
An FM transmitter works through a cars antenna…because the FCC made the output so weak on these devices, there is significant distortion. The new XM PowerConnect system works through the radio heads internal wiring, meaning little to nil distortion.
And by the way, it offers an auxiliary input as well
Thank you, Brandon. And well ok, then, the XM power connect sounds like something that should be emphasized as a selling point! I am an iphone user and this device solves many issues with a single device, provided it is nil distortion. I wasn’t on board to subscribe with the internet connection, but this changes things significantly. I eagerly anticipate the release of the skydock, and will hold off on spending $500 to equip my vehicle for the Ipod, because it sounds like this device will do more for less. I would have to assume that a subscription is necessary for the XM power connect to work, otherwise the device would have a value just for its iphone connection capability despite one not being an XM subscriber. That capability alone sounds like something very marketable, because ipod and iphone interfaces aren’t cheap, and often cumbersome.
brandon, did you see the SR-H2000 also? lots of cool features but one feature i find very intriguing is its capability to use an F Connector for the satellite antenna. That makes it convenient for home installation since coax cable is simpler to deal with than xm antenna wire. also the radio could be moved to other rooms of the house as long as a coax connector is there.
I did see that, but they spent very little time promoting it. I have a picture that I’ll post this weekend on the forum…lots of pics in fact….also they did not include a press release for that receiver
ok thanks. on that one my mind goes in lots of directions imagining cable tv and sat tv companies partnering with siriusxm to offer package deals. appeals to the consumers who don’t have time to be bothered with technology but could get addicted to sat radio in the home. maybe they would give it a chance if the cable guy would set it all up for them. i may just buy this radio for the home rather than the internet table top because i’ve already wired my house with coax and could avoid the network traffic that streaming radio brings.
Thank you, Brandon and great coverage by satwaves for this event! It must have been exciting to be part of this limited few selected by Sirius/Xm to attend this event before being released to the public!
Do you know if any of these new vehicle devises (especially the skydock) can also be transmitting GPS data & display?
I think offering a GPS and Sattelite radio services bundle could, attract alot more new subs.
Also, does any of these new devices have video capablity to deliver video to support a possible bundled package with Direct Tv as many have speculated?