Audiovox is going through tough times these days with their stock plummeting by more than 15 percent today, after the company announced last night that sales dropped 21 percent in its latest quarter, and that it lost $2 million. Among other things, Audiovox blamed the sharp losses on a decline in satellite radio sales. A decline in satelliet radio sales? Lets take a closer look. As they say, the devil is in the details.
At first glance, one might be inclined to believe that Audiovoxs troubles stem from a lack of consumer interest in satellite radio. But thats not the case. The facts are clear, Audiovox no longer sells Sirius plug-and-play units. To be fair, Audiovox admitted that the decline in satellite radio retail sales was related to the fact that they no longer sell Sirius plug-and-play units. Thats a no-brainer, really…. sort of economics 101.
The company also voluntarily suspended sales of the Audiovox XM Express products after the Federal Communications Commission dismissed an equipment certification. Audiovox said that it has since resumed shipments of XM Express following a resolution of the matter with the FCC.