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Dolby (DLB) Boosts In-Car Audio Experience of NIO ET7 Model

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Dolby Laboratories, Inc. (DLB - Free Report) recently announced that it has collaborated with a leading automobile manufacturer, NIO Inc. (NIO - Free Report) , to incorporate its much-acclaimed Atmos technology in the latter’s smart flagship electric sedan — the ET7. Dolby Atmos will come standard on the latest sedan model and is expected to be delivered from the first quarter of 2022.

Headquartered in Shanghai, China, NIO specializes in the manufacture of smart EVs and autonomous vehicles. With research and development facilities based in Beijing, Munich, Shanghai, San Jose, London along with six other locations, the company is also involved in the first single-seater, all-electric racing series — FIA Formula E Championship.

NIO is known for launching one of the world’s fastest electric cars, the EP9, in 2016. The China-based auto giant had unveiled its ET7 model in early 2021. Backed by avant-garde dimensions, the ET7 is equipped with a futuristic autonomous driving sensing system that offers an improved intelligent connectivity experience.

With double-dash daytime running lights, ET7’s revolutionary design creates substantial space for all occupants driven by multi-scenario interactions. Dolby Atmos is a state-of-the-art audio technology that empowers artists and creators to enjoy an immersive listening experience, thereby expanding their creative palette.

With more than five decades of industry expertise, the platform’s professional tools are heavily relied upon by content creators. Its intuitive tools are used for editing, mixing, and streamlining sound design workflows. It lets sounds travel in three-dimensional space with greater precision and taps new business opportunities with the creation of accretive movie titles, games, and TV series.

The incorporation of Dolby Atmos in NIO’s latest ET7 model comes as a boon especially at a time when the majority of auto companies are transitioning toward providing improved driving experiences with the rising adoption of future-proof automotive innovation technologies amid smart mobility scenarios. With a total output of 1000W, the NIO ET7’s audio system is equipped with 23 speakers. It has four primary channels that feature a mid-tone and bass driver, tweeter, four overhead speakers, and a subwoofer.

Thanks to Dolby Atmos’ best-in-class clarity and active tuning algorithm, the electric vehicle will provide passengers with an enhanced in-car audio experience. Driven by Dolby’s technological prowess, NIO will be able to create a unique value for the ET7 model by emphasizing on the future of car audio to consumers based in China and internationally. Music is a crucial part of the in-car experience and Dolby Atmos’ presence will make the overall experience worthwhile with an extraordinary listening experience. Currently, the vehicle is available for pre-order through the NIO app.

Dolby is well poised to benefit from higher adoption of Dolby Vision and Dolby Atmos technology with the rising demand for premium-viewing experiences. Its growth strategy stands on three pillars — advancing the science of sight and sound, providing creative solutions, and delivering superior experiences. Diligent capital deployment strategies and robust financials ensure the Zacks Rank #3 (Hold) stock’s long-term growth. Gradual growth in Dolby Cinema’s footprint, as a result of the post-pandemic market revival, is expected to drive the San Francisco, CA-based company’s business.

Dolby’s shares have lost 10.7% against the industry’s growth of 20.4% in the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Some better-ranked stocks in the industry are GoPro, Inc. (GPRO - Free Report) , and Panasonic Corporation (PCRFY - Free Report) .

GoPro carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has been revised 12% upward over the past 30 days.

GoPro delivered a trailing four-quarter earnings surprise of 90%, on average. It has gained 46.4% in the past year.

Panasonic is another solid pick for investors, carrying a Zacks Rank #2. The consensus estimate for current-year earnings has been revised 2.1% downward over the past 30 days.

Panasonic has a long-term earnings growth expectation of 25.72%. It delivered a trailing four-quarter earnings surprise of 23.2%, on average. The stock has appreciated 17.6% in the past year.

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