Boston, MA 01/02/2013 (wallstreetpr) – US-based satellite and Internet radio streaming services provider Sirius XM Holdings Inc. (NASDAQ:SIRI) may soon face serious competition from Internet technology services leader Google Inc (NASDAQ:GOOG). With Google said to be drawing up partnerships and plans to venture into the promising yet nascent connected vehicles segment where Sirius is currently the only major player, Google will look to extend the power wielded by its booming Android operating system.
Current Automobile Trends:
Present automobile industry trends indicate most automobile makers will incorporate Internet connectivity into most, if not all, new passenger vehicles. The connected vehicle software market is set to become the new technology kid on the block. Google’s Android, which continues to sway masses and markets worldwide with its superior features at economical prices, has brought on the anvil Google’s foray into the lucrative satellite broadcasting space. And with software leader Apple Inc (NASDAQ:AAPL) collaborating with auto giants Mercedes, BMW, General Motors and Honda in the same space, Sirius could see its marketplace heat up. Apple’s current technology allows using Apple devices to stream content directly to the dashboard control system.
Sirius and potential competition:
Sirius XM Holdings Inc. (NASDAQ:SIRI) is already considered the current leader, if not a dominant player of the connected vehicle technology industry, after it acquired the connected-vehicle-services portion of USA-based Agero for about $530 million, coupled with the widest radio programming options and a handsome 26 million subscriber base in USA alone. As a competitor, Google could pose a serious threat to both the standing and viability of Sirius operations. Experts feel that a technological alliance between Sirius and Google could immensely benefit the connected vehicle revolution, eventually benefiting both leaders.
Riding on strong full-year revenue forecasts ensuing healthy sales revenue posted recently, industry and shareholder sentiments have been quite positive on Sirius stocks, despite recent operating costs shooting high for the radio operator’s diversification plans beyond its core satellite radio services. Sirius XM Holdings Inc. (NASDAQ:SIRI) stocks came down $0.02 on NASDAQ to $3.49 at their December 31 trade close from their previous $3.51 close, continuing into their after-hours.
