During August in the US, retail sales of Satellite Radio receivers dropped 27%. Some have questioned whether this drop is going to be a permanent thing or just a spur along the way.



Analysts are suggesting that it is not retail sales that should be watched to indicate the success of this growing market. What should be watched is the number of radios that will be installed in new cars. It is the high penetration into vehicles that will make the difference in growing the market.

Chrysler has said that it will install satellite radios in 70 percent of its 2008 models. Other automobile manufacturers have indicated similar figures. It is this installation in new automobiles that is going to make satellite radio as a viable and highly profitable business.