Car firms to provide iPod link up

Analysts said that the new car kit may help boost sales of iPods

Computer firm Apple has teamed up with vehicle-makers Ford, General Motors, and Mazda to integrate its iPod digital music player into car stereos.

The firms will provide a specific iPod connection in most of their new models.

Drivers will be able to listen to music from a player in their glove box or centre console, and will also be able to change songs using stereo controls.

Apple's shares climbed 2.5% in New York on optimism that the tie up will help boost sales of its market-leading iPod.

'Safe manner'

"More than 70% of 2007-model US automobiles will offer iPod integration," said Greg Joswiak, vice president of iPod product marketing.

The biggest loser could be terrestrial radio Craig Moffett Sanford Bernstein

At the moment, drivers have to use an adapter that either plugs in to their car stereos, or emits a radio signal that is picked up by the stereos.

"Consumers are listening to music, they're messaging each other, and they want to engage in all those activities in their vehicles but in a safe manner," said Doug VanDagens of Ford.

Apple's iPods are the best-selling digital music players, with about 75% of the market share.

While many analysts said that they expected the deal to boost Apple's profits, it may hurt earnings at radio stations as consumers prefer to listen to their own compilations rather than their drive-time programming.

That would mean fewer companies would be willing to pay for radio advertising.

"The biggest loser could be terrestrial radio, because their revenue stream is directly proportional to the number of hours you listen," said Craig Moffett, an analyst at Sanford Bernstein.