By Brandon Matthews
According to a source at Best Buy (NYSE:BBY), the company circulated an email last week stating that they will not be restocking Satellite Radio inventories in anticipation of new product releases and stating that Sirius XM Radio (NASDAQ: SIRI) will be “completely changing its product line.”
Following what appears to have been a robust fourth quarter at retail for Sirius XM Radio, many observers have noted that inventories at major electronics retailers have nearly sold out. We have also been witness over the last several weeks as Sirius XM Radio has offered unbelievable deals on existing hardware inventories, such as the Stratus 5 for twenty dollars and portable units for under fifty bucks. These close-out pricing offers appear to validate the Best Buy memo.
The Consumer Electronics Show (CES) is slated to begin on January 7, 2010. In an interview on Satwaves Radio last quarter, Joe Caltabiano, National Sales Manager of the Satellite Radio Division of Audiovox (NASDAQ:VOXX), announced that the company would be unveiling new and exciting Satellite Radio products at the event. The flagship XM Skydock has been named one of The Consumer Electronics Association’s 2010 Best Of Innovations award nominees and promises to be a highlight of the show.
According to the CES website, Sirius XM Radio and Audiovox will be sharing some very prime real estate at the show in the Central Hall (Booth: Central 10506,Central 11006). Under a veil of secrecy similar to pending announcements from Apple (NSDQ: AAPL), no details have been released about any new radio offerings that may be in the pipeline, with the exception of a rumored home docking device to complement the XM Skydock.
Speculation has now begun as to whether the company will offer other SkyDock-like devices for Android and Blackberry phones. Further evidence seems to support the introduction of new Wi-Fi enabled radios.
Position: Long SIRI