Apple Drives iPod Integration Deals

Apple (Nasdaq: AAPL) announced Thursday that Ford Motor, General Motors and Mazda are the latest automobile manufacturers tuning into iPod integration. The trio join a growing list of car makers that have agreed to build support for the music players into their vehicles.

Apple -- which has already announced similar deals with a long list of major automakers including BMW, Honda, Mercedes-Benz and Volkswagen -- said the latest deals would put iPod integration into nearly three-quarters of all new vehicles to be available for sale in the U.S. next year.

"Now more than 70 percent of 2007-model U.S. automobiles will offer iPod integration, with GM alone making it available on all 56 of its models, representing millions of cars and trucks," said Apple Vice President of Worldwide iPod Product Marketing Greg Joswiak.

Driving the iPod

Industry observers said carmakers have typically tended to view vehicle sound systems as proprietary features and major selling points, but now, they're responding to what they see as significant customer demand for iPod integration in particular.

"[Car manufacturers] in general have been resistant to open the dashboard to outside players," ABI Research Principal Analyst Dan Benjamin told MacNewsWorld. "From an automaker perspective, being able to accept this is relatively new."

Apple said iPod compatibility will appear in most of GM's 2007 models -- and all 2007 Mazda vehicles -- beginning later this year. Ford will offer it on Ford and Lincoln Mercury models.

The iPod integration technology consists of playback capability as well as ability to charge and stash the players in vehicle dashboards. Standard iPod controls for musical selections, playlists and other functions will also be included.

"It's an amazing accomplishment," JupiterResearch Vice President Michael Gartenberg told MacNewsWorld. "The key is, [Apple has] a multi-year advantage over other folks, and they've proven they can pretty much get in everywhere."

Top of Mind

The iPod auto deals are another step in a series made by Apple to ensure its media player remains on top, both in terms of sales and in the minds of consumers, who are unlikely to switch devices if their car works with an iPod, he noted.

ABI's Benjamin cautioned that there are a variety of difficulties and challenges special to the automobile environment, however, including carry-over issues such as digital rights management (DRM) of music content.

"There are major issues with offering this kind of connectivity," he said. "To a certain extent, Apple has to be careful here."