Report: Car stereo prices set to soar

According to CE Outlook, the price of car stereo components may be on the rise. The report says that even before Japan suffered its earthquake, tsunami and nuclear disasters, manufacturers responsible for automotive audio equipment were already beginning to increase MSRPs. The main source of that surge came from steeper prices for metals like aluminum and copper, which are used in heat sinks and connectors. Rockford Fosgate and JL Audio both increased their prices by March 1 of this year after the cost of materials increased six to eight percent. Manufactures say they expect another increase of similar severity by the end of 2011.

Meanwhile, the tragedy in Japan has delayed or stopped business completely at several suppliers responsible for building car audio components. CE Outlook reports that Alpine has already announced that a number of its suppliers have suffered substantial damage. That damage may lead to delays or additional price increases as manufacturers scramble to find interim replacements.

[Source: CE Outlook]

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