By The Associated Press
Shares of car stereo equipment maker Harman International Industries Inc. fell Tuesday, a day after Apple said most major car manufacturers have agreed to integrate Apple's voice-control software into their vehicles.
That could ramp up competition for Harman's products.
THE SPARK: Apple CEO Tim Cook told a conference of software developers Monday that eight automakers agreed to integrate its voice control technology, called Siri, into their cars. That would allow users of iPhones and iPads to access music, directions and other information while driving.
The automakers involved are GM, Toyota, Chrysler, Honda, Mercedes, Audi, BMW and Jaguar/Land Rover.
THE BIG PICTURE: Harman supplies audio and entertainment systems to automakers. The company also provides consumer electronics and big speaker systems used for public events.
THE ANALYSIS: Systems that allow drivers to plug smartphones into vehicles are "the greatest risk to embedded infotainment systems" like Harman's, Baird Equity Research analysts wrote in research note Tuesday.
Still, the analysts acknowledged, "this is a rapidly changing space in the automotive world," and it will be three to five years before winners and losers can be identified.
SHARE ACTION: Shares of Harman fell $1.88, or 5 percent, to $36.12 in late afternoon trading Tuesday. Harman has traded between $25.53 and $52.75 over the past year.
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