Where are XM's New Gadgets?
It's early November, and the only new XM receiver we've seen is the SkyFi3. And after yesterday's earnings call, we now know that nothing else is planned until CES.
Odd. Last year XM held the XMas In August event which showcased the upcoming devices of the year. Lots of hype. Lots of buzz. Yet, amidst all the fun stuff, there was disappointments. The Samsung Nexus was delayed. The Dell XM/MP3 player never came to fruition.
This year, the last press event (that I've known of) was back when the Inno was unveiled. That was in Spring.
No events. No fanfare. The SkyFi3 got it's announcement, but no coming out party. So what happened?
It sounds like the hammer of Nate Davis has come down, and in an effort to control costs, the product development cycle has been lengthened. Less focus on that expensive R&D for devices that really don't provide the lionshare of sales anyway, shifted focus towards marketing. That's my assumption anyway.
So the early adopters will have to continue on with only the Inno. Meanwhile Sirius has released a myriad of new plug-and-play units, not to mention the Stiletto. The Inno was introduced in early summer, so it's had enough time on the shelves to get that early adopter exposure. Now XM can discount it for the Holidays. Competitive move or forced circumstances?
Whatever the reason, it's a bit disappointing, especially for websites like this where we go ga-ga over new gadgets. Maybe they won't provide astronomical sales, but c'mon - they're fun. Yet in the ultimate goal of profitability, would you mind a couple geeks crying?
Sure, why not... we'll still be waiting here pining away.


Comments
Ryan, not to sound like an XM-fanboy, but none of the recent Sirius product releases are exactly catching fire. Several big gadget sites have panned the new Stilleto as being difficult, poor quality, and just plain kludgey.
I do agree with you that I'd like to see more "sizzle" in XM's marketing, and the animated "sound waves" just don't do it for me.
Posted by: Eric | November 7, 2006 4:33 PM
The price of the Inno/Helix is dropping but I'm looking for a killer deal, similar to what was done for the MyFi last year so I can get me an Inno or Helix.
Posted by: prozac | November 7, 2006 4:41 PM
So XM saved a few buck by not doing a Christmas in August. Im not worried. Just give me more Passport compatible device and im a VERY happy camper.
Posted by: XMScott ? | November 7, 2006 4:50 PM
Given the long-term nature of the gadget development cycle, I doubt we're seeing the result of a budget crunch.
Just speculating, I would think it has more to do with the impending resolution of the RIAA suit (should a dismissal occur).
I would think another possibility is that XM has determined that $400 devices just don't sell that well and so they want to provide more time for discounted sales of Innos/Helixes. It is important for these big CE guys to make some money on what they build before they're obsoleted. By delaying bigger/better units until after Christmas it should give them time to move some of these in volume before bringing out the latest and greatest.
It'll just make CES that much better.
Posted by: StackPointer ? | November 7, 2006 5:17 PM
If you read the transcript, Nate Davis said that XM doesn't have enough fresh devices, so your assumption that that XM is slowing down in this regard is incorrect.
"Our third major priority is to improve our product offering. To ensure we stay consumer focused, we've established a new product marketing group and appointed Blair Kutrow, who has 20 years of experience developing products as the Head of Product Development for companies like Nextel and Vanguard. Here too, we're well along the way with a pipeline of new products. The first new product out of the box will be SkyFi3, which is scheduled to begin arriving at retailers later this month. This plug and play radio is the latest addition to the best-selling family of satellite radios, and it leverages our technology to reduce hardware subsidies compared to the previous SkyFi2."
Posted by: havaloc | November 7, 2006 5:42 PM
The discounting has already begun. Sam's Club is selling the Inno for $236.
Posted by: Steve | November 7, 2006 8:15 PM
THANK GOD someone else finally took note of the lack of XM products coming out. I thoght it was only me!
I have to say the reason I belive they havnt released any products this holiday is simple.
#1. The INNO is still a rocking unit and will give the Stiletto a run for its money with a reduced price.
#2 They just released the INNO/Helix in May, no need to canibalize their own products yet.
#3. I think XM is realizing that the outlook on Satilite Radio is not so good, and with SIRIUS benifiting from the Stern effect, its better to watch their competitor spend itself into doom rather then go down the same road.
I mean SIRUS is paying Howard 500 million, spending a TON on advertising and promotion as well as revamping all their product line as well as the Stiletto. That is why SIRIUS stock is still in the $4 range and XM is in the $13.39 range. Siruis spends too much!
And I think XM knows that the product offered by XM is STILL superior. I dont think XM needs to fight. Just sit back and wait this out for a while.
Oh one last gripe. WHERE IS MY INNO BOOMBOX! 6 months and no boombox? Comeone it would rock. A nice boombox to compliment my unit. PLLEEAASSEE XM I CANT WAIT TILL CES!
Posted by: mrFancyPants ? | November 7, 2006 8:45 PM
I say it's part of the cost cutting scheme by Davis. XM already has plenty of plug-n-play units, and a portable that can be updated if necessary.
Retail subscribers are starting to crest now. OEM and simplicity are going to be what drives people to satellite now. XM and Sirius don't need to have 20 units for sale anymore. Keep it simple and keep the costs down.
Posted by: SatelliteRadioFan ? | November 7, 2006 8:46 PM
SatelliteRadioFan--Interesting comment above...iTunes doesnt need dozens of devices...just a few easy/hot ones. That said, I've been listening to XM over my Treo 700w with EVDO...no recording capabilities, but whatev. I get the convergence of XM with music (Napster to Go, etc). Look for the smartphone model to take over in the next 18 months.
Posted by: Eric | November 7, 2006 9:14 PM
"That is why SIRIUS stock is still in the $4 range and XM is in the $13.39 range."
Please, please educate yourself before speaking. Stock price by itself cannot be used for valuation. Stock price multiplied by the number of outstanding shares (market cap) can give you an idea of what a company is worth. If I incorporate and issue 10 shares of stock at $1500 each does that make my company "better" than Google who can't break a measly $500 share price?
Posted by: cfg ? | November 7, 2006 9:36 PM
Keep in mind that to those of us who read this site, XM411 and siriusbackstage, there are NEVER enough new units. However, to the millions of potential subscribers walking into Best Buy, Circuit City, etc., the units available are NEW to THEM! As long as they have a choice of units, the fact that some are "older" models really isn't an issue.
Also, keep in mind that CES 2007 is coming and XM said it will be announcing new models for the coming year.
The key for XM this quarter is to have plenty of units on the shelves for buyers.
Posted by: iband | November 8, 2006 7:08 AM
I always love to see new toys come to fruition, however I don't think there's any immediate need for new receivers in the current marketplace. The RoadyXT, Audiovox Xpress, Inno/Helix, Nexus, and SkyFi3 all have their target audiences, be it someone who wants just a basic PnP to listen (RoadyXT/Xpress), or someone who wants a portable with expandable MP3 capability (SkyFi3).
Plus, with the increased focus of XM on their own product - content - it wouldn't surprise me if XM were to eventually just sell the chips, and leave the manufacturers to (design) their own devices.
Personally, though, I'm with XMScott. I want a Mini Tuner car receiver of some sort! I'm already using my Passport in two locations - home and work. Now I just need a device that will accept it for the road between them so I can axe another receiver from my account!
Posted by: MikeV | November 8, 2006 8:15 AM