With 2014 around the corner, it’s time to look at what to expect next year in products, trends, and sales.   Here’s some of our own predictions and some from industry experts and industry members.

1. Expect more HDMI and MHL in car radios  for mirroring a smartphone onto the car radio screen (including video and apps)
2. Expect suppliers to introduce more driver safety products for the aftermarket including advancements in night vision and possibly even blindspot detection.
3. We’ll see more car audio brands offering car-specific speaker/amplifier systems.
4. The car audio aftermarket will decline by 11.4 percent in North America  in 2014 over 2013, according to Strategy Analytics.  Aftermarket revenues for 2014 will drop to $2.360 billion, from $2.663 billion in 2013.
5. There will be a push to find the killer app in the Connected Car.  In other words, suppliers will look for a way to market and better monetize the Connected Car in the aftermarket.
6. Audiovox’s Tom Malone believes that WiFi hotspot in the car will start to gain prominence.
7. Expect to see more tablet integration in the aftermarket.
8. Wireless charging of devices in the car will gain a foothold in the aftermarket.
9. For car sales in general: Kelley BlueBook projects 16.3 million For 2014 up from 15.6 million in 2013
10. For the U.S. economy in general:  gross domestic product (GDP) is forecast to climb 2.9 percent, up from 1.9 percent growth in 2013. See economic predictions here.

An article in Wired.com serves as a warning to car audio installers, however talented and careful they may be.

A former Top 100 installer on Mobile Electronics Magazine’s annual listing, says the story, is now in prison for installing “traps” or hidden compartments in vehicles.

Credit: FBI Bulletin

Occasionally, car audio installers are asked to install such secret in-car compartments, we are told, for use to store valuables. But the traps may also be used to traffic drugs or other illicit items, and so may put installers at legal risk, as it did for Alfred Anaya of Valley Custom Audio Fanatics in San Fernando, CA.  He is now serving a 24 year sentence in federal prison.

Anaya was charged with “false compartment activity.”

The traps require considerable skill as they must be undetectable to the eye and difficult to “trigger.”   To open or trigger a trip may require several steps involving relays or sensors or even voice control.  One might need to press a window button three times, followed by a door lock four times, for example.

The traps themselves can be hollowed into almost any part of the car including seats, gas tanks, trunks, and the dashboard.

According to an FBI Law Enforcement Bulletin in October 2010, there is no federal statute specifically outlawing traps but authorities may pursue installers under a statute stating it is unlawful to sell drug paraphernalia (which includes any equipment of any kind designed to conceal an unlawful substance, underTitle 21, U.S. Code, Section 863(a) (1)).

Anaya’s tale is all the more instructive because he may be viewed as a victim of his skill.  His traps were so intricate and blended so well with the car’s interior that he attracted the attention of local drug smugglers.   It’s also instructive because Anaya apparently tried to stay on the right side of the law.  Every installer would do well to read the Wired story here: http://www.wired.com/threatlevel/2013/03/alfred-anaya/all/

Hear that whooshing sound?  That’s Northern car audio dealers  from the east coast to the mid-west exhaling with relief now that the weather has finally cooperated and remote starters are flying off the shelf.

Car audio dealers from Maine to Michigan reported significantly higher sales over last year, as winter favored them with the ideal remote start scenario—an extended cold snap early in the season.

Remote start supplier Compustar said, “You’re seeing customers that held off on buying a starter last year because of the warm weather showing up in droves at our dealers’ stores. The growth isn’t concentrated either, as we are selling through our entry-level and high end products,” noted Marketing Manager Justin Lee.  He said the company is up significantly this year over last.

Audiovox said remote start sales are up by high single digits over last year.

Retailers such as ABC Warehouse in Pontiac, MI, which claims to be one of the largest Directed remote start dealers said its sales are up “a lot.”  The gains are enough to bring the whole car audio category for the retailer up slightly for the season (excluding portable navigation devices), said buyer Bob Frazier.

John Samp of ABT, Glenview, IL said, “We’re killing it with remote start. We’re doing anywhere between 30 and 40 a day.” He expects car audio will be up for the season as a result.“ It’s definitely a good end to the year.”

Sound FX of West Warwick, RI is up by 30 percent compared to this time last year.  “Last year as of December 26^th I was booking [installation appointments for remote start] through the first week of January.  We’re already backed up to January 17 and we have 6 more days left of selling,” said Mark D’Elia.

Sanford Sound in Sanford, Maine said sales are up 20 to 25 percent and KustomEis Car Audio of Regina, Canada said sales are up by double digits.

One Northeast retailer said the slower economy overshadowed the weather and sales are tracking below last year.

At CES next month, Google will jump into the car entertainment market with both feet in a bid to rule the interface for the car radio with apps.

It will launch its own car OS rival to Apple’s iOS in the Car, according to EE Times, a well-regarded electronics journal.

Additionally, Google will form an industry group, expected to create standards to make it easier to develop apps for the car, said the report.

As car makers struggle to advance their car radios without making them too complex for the average user, a window of opportunity has emerged for tech companies to create a safe user interface for the Connected Car.

Apple announced in June that its car radio interface, iOS in the Car, will be available  next year in new cars offering simple mirroring  from iPhones to the car radio with lots of voice control.

iOS in the Car is expected to be available in half of all cars world wide by 2018, according to ABI Research.

As EE Times said, “The fireworks are about to begin,” as Google and Apple will face off in a contest to create a simple but powerful radio system for connecting to smartphones and using apps in the car.

Kenwood is shipping early a number of new audio decks for 2014, all of which include a new feature called Drive EQ.

Drive EQ compensates for road noise when the radio is playing at lower volumes.  It boosts frequencies in the music that are generally affected by road noise, without distortion, it said.

The feature is found on three new CD/radio models, a CD-less receiver and a marine receiver that ship this month.

The trio of new CD radios with Drive EQ includes the KDC-258U with iPod/iPhone connectivity and Pandora and iHeart Radio control over an iPhone at $120 suggested retail price.  It also has a front-mounted USB port and a 2.5 volt selectable preamp-output for rear speakers or subwoofer with low pass filter. Step down models include the KDC-158U and the KDC-118U, each at $110.

The new CD-less receiver is the KMM-108U, which connects to an iPod/iPhone and supports Pandora and iHeart Radio apps for iPhone.  It also has an “AppMode” for listening to iPhone apps such as TuneIn Radio and Aupeo. For audiophiles, the KMM-108U supports FLAC (free lossless audio codec) audio files.  The head unit has a front USB, 2.5 volt selectable preamp output and a remote control at $100 suggested retail price.

Kenwood’s new marine receiver is SiriusXM ready, iPod/iPhone compatible and supports Pandora and iHeart Radio for iPhone.  It also has AppMode for listening to additional iPhone apps and it has a CD door cover and front USB plus a coated circuit board to protect from the elements and pre-amp output.  It works with a up to 6 remote controls. The KMR-D358 is now available at a suggested retail price of $140.   It is joined by a marine receiver/speaker package that includes the receiver and two-way 6.5 inch speakers with 100 watt (Max) power handling at $240.

A KCA-RC35MR remote control for the marine deck is available at $90.

Lexani Motorcars New Adage: Tis the Season for Luxury

CORONA, CA (12.13.2013) – Samsung TVs, iPads, quality sound systems, and new cars are on countless Christmas lists this year. This custom Cadillac Escalade encompasses all the top gifts under one (quite beautiful) roof. Lexani Motorcars, the internationally recognized leader of customized luxury coaches, showcases one of the most acclaimed luxury SUVs ever made for its global clientele—a fully equipped Cadillac Escalade conversion called the Adage. This fully equipped Executive SUV is complete with the technology and amenities to make any trip feel like a getaway. Sit back, relax, and let yourself experience genuine luxury.

This stunning, one-of-a-kind Cadillac Escalade features an unassuming exterior and an interior design that integrates only the finest bespoke amenities rivaling those found in high-end yachts and private jets. Each vehicle is meticulously crafted using only the highest quality materials, furnishing, and carpentry, with incomparable attention to detail. And it doesn’t stop there—the craftsmen at Lexani Motorcars will make every effort to integrate a customer’s specific requests for additional amenities to create a unique vehicle for business or play.

In the next 4 to 8 years, cars will out-tech smartphones, which will ultimately be limited by a small power supply and little headroom for sensors.

Car makers will overcome the current problem of long development cycles by using modular electronic components  that can be easily swapped.  Plus, in the car you  can add arrays of sensors, and aim them more effectively than can a smartphone in your pocket.  And the car gives you a relatively unlimited power supply.   So says leading automotive analyst Thilo Koslowski of Gartner.

“The car will be cooler than smartphones and tablets going forward because you have so much more opportunity to create these immersive experiences… you have no power limitations, you can use all kinds of sensors.  We’re really about to see a huge explosion on innovation in this space,” he said.

Silicon Valley is already training its sites on the car and it’s possible that technology companies will like the profit margins and increase their involvement in the sector, he said.  Koslowski  told us in an interview, “It’s fair game to assess that a lot of technology companies realize the connected vehicle represents an area they have a lot of expertise in.  There’s Google, but there could be others.  It could be Samsung.  A lot of companies that really understand technology may find it attractive enough in profit margin to get involved.”

But hasn’t the car always lagged behind due to long production cycles?  Koslowski believes automakers will figure out how to create tech modules that can be swapped out for upgrades.  “You may be able to swap a module to give you more computing power, and to give you more sensors—audio, video sensors, heat sensors, multiple cameras.” An Audi A3 already allows you to upgrade a motherboard in the glove compartment to improve the car radio/navigation system.

So where does the aftermarket fit into the car of the future, especially with semi-self-driving cars in the works?    Koslowski says aftermarket companies will have to get away from the center console and get deeply involved in sensors and other new technologies.   And as cars become more “automated,” video will become a more important part of entertainment systems, he said.

“Ultimately that means you have more of a PC experience..that means you don’t really have to focus on the driving aspect.” But Koslowski doesn’t see driving reaching the point where you lay back on a sofa while the car drives itself due to legal issues.

The Gartner analyst foresees a time when the car can determine if the drivers around you are “safe” drivers or if they are driving poorly. In fact, all of us may have driving scores, and the future navigation system might route us on the safest route (where the drivers are safer) not just the fastest route.

“Ultimately the car will become self-aware.  The phone can’t do that because you don’t get all the sensors.  The car can not only read the state of the driver and passengers but the environment,” he said, noting, so it can tell if you are driving in the rain or in the left lane and then tell incoming callers you’ll call back at a later time.

Best Buy is asking its suppliers to provide it with Connected Car products and it is exploring an effort to present the Connected Car in a simple, understandable manner to the consumer, said industry members.

Three vendors said the chain has asked them specifically for “Connected Car” products that offer Internet connected or networked solutions.

One supplier said the chain hopes to develop a Connected Car program by the April 2014 product reset.  But to date, there is no formal Connected Car program from Best Buy.

“They are realistic about the category and open to new ideas, like what the Connected Car can be.  They are actively looking for new products in the Connected Car,” said a  supplier.

Best Buy did not respond to CEoutlook inquiries.

One vendor said that Best Buy is searching for a way to present the idea of the Connected Car to the public in an easily to grasp manner, something which may seem simple, but is actually a challenge.  “They are trying to find a way to deliver a clear message that shows the benefits to consumers,” he said.

Store-wide, in other areas of electronics, Best Buy is pushing Internet-connected devices like smart TVs, smartphones and tablets and it wants car audio to be relevant just like these other devices that have captured the fancy of consumers.  “They want to see these same attributes in mobile electronics solutions,” said one supplier.

The term Connected Car refers to technologies that link the car infotainment system to the Internet.  It includes radios that link to a smartphone or that include WiFor or 3/4G.  It may refer to technologies that let you  track a car over the Internet or let you remote start a car from a phone.  It can also include advanced safety features through radar and sensors.   Future connected car technologies include vehicle to vehicle (V2V) communication and autonomous cars that drive themselves.

Many specialists don’t participate in Black Friday, but this year, those who did, saw sales anywhere from flat to up by 45 percent.

Some retailers in the Mobile Electronics Specialists of America (MESA) buying group reported the strongest gains:

Freeman’s Stereo Video, NC, (7-stores) was up 45 percent for Friday and Saturday compared to last year. It increased its marketing with Pandora and with other media including Google ad words during the holiday kick off. Sales for the entire week Monday through Saturday were up just shy of 30 percent.

Line at Sound of Tri-State on Black Friday

Custom Sounds, TX, (16-stores) said sales for the weekend jumped 21 percent.

Sound of Tri-State, DE, (3 stores) was flat for the weekend.  Black Friday itself was up 11 percent but Saturday was slower than last year for the chain.

Car Toys, WA, (50-stores) said, “Car Audio results were very positive – we were thrilled.  Sales were up in virtually all categories beyond expectations with powerful results in bass reinforcement, head units and security,” said Jim Warren, Senior VP Merchandising.  The company promoted on TV, radio and social media and said store traffic was up year over year.

For the holidays and through next year, many retailers said they are pushing backup cameras more heavily.  Some are looking to driver safety as a category of focus now that more new cars include iPhone/iPod connectivity and Bluetooth. Others are getting more aggressive in LED lighting.

Sound Advice, FL said its sales were flat for Black Friday weekend, but for the week from Monday to Sunday, sales were up 31 percent.  The company promoted a week early because of the late Thanksgiving holiday this year.

As for Black Friday specials, Freeman’s said in-dash navigation and AV were the top categories, but it saw increases in all categories.  A strong seller was the Pioneer AVICX850BT.

Custom Sounds’ Mike Cofield attributed some of its double digit gains to a new method of in-store training the chain has implemented in a step by step sales process from the time the customer walks in the door.   Cofield said, “At the Men’s Warehouse, by the time you are out of the dressing room with the suit on, the sales guy already has the shirt, tie and cuff links laid out.” He said the new sales program uses a similar step by step approach “that we can teach a new salesman in two weeks.”.

Custom Sounds also added Pandora advertising through a MESA group buying deal that starts at a $1,000 buy-in, instead of Pandora’s usual $10,000 minimum buy, he said.

Top products for the weekend at Custom Sounds were the Rockford R1L2X12 dual 12-inch subwoofer box, the Kenwood  PW1210  amp and sub package (62 were sold), Jensen in-dash navigation ($299), Alpine SWR12 subs and JL Audio 12W3 subs, as well as remote start.

Some retailers opted out of Black Friday this year, including Car Concepts, UT.  The store said since the recession, during Black Friday, customers  would buy a remote start at $89 and then get angry at the price of a data module to install it.