Apple announced the next generation of its car software CarPlay in June.
With its new software, Apple is diving deeper into its automotive ambitions, opening up the possibility to enter into a multibillion segment of the auto industry that’s growing quickly: The ability to sell additional services and features to car owners.
Apple is using the iPhone’s popularity to push itself into the auto industry. Automakers are a little unsure how they feel about this.
Apple announced the next generation of its car software CarPlay in June. It takes over the user interface on all interior screens, replacing gas gauges and speed dials with a digital version powered by the driver’s iPhone. It suggested CarPlay helps automakers sell vehicles.
Apple engineering manager Emily Schubert said 98% of new cars in the U.S. come with CarPlay installed. She delivered a shocking stat: 79% of U.S. buyers would only buy a car if it supported CarPlay.
p.s. Has anyone heard any more about the Tesla phone? Now I understand why Musk fired that salvo.
I hope Rob sees this money shot paragraph from this CNBC article and maybe expand upon it? Think about this: $AAPL has a an app store for their CarPlay which can be sent from your iPhone to your dashboard, overriding the OEM’s software opening page.
Does Apple go full tilt boogey and take a majority of revenue from ad sales from the car screen run by $AAPL while the OEM takes a smaller cut? Does $AAPL just vacuum up ingrained data on drivers, how much they are in the car, how fast they drive, what they use for mapping, what they listen to on the stereo, what stores they park in front of, etc., and sell this information to 3rd parties?
This is going to be another interesting development to watch in the car space, for sure.
“The auto industry faces an unappealing choice: Offer CarPlay and give up potential revenue and the chance to ride a major industry shift, or spend heavily to develop their own infotainment software and cater to an potentially shrinking audience of car buyers who will purchase a new vehicle without CarPlay.”
Here’s what I posted on the AAPL board about CarPlay:
She delivered a shocking stat: 79% of U.S. buyers would only buy a car if it supported CarPlay. (Apple executive)
LOL… sounds like they only surveyed Apple employees!
I’d bet that not half of US buyers even know there is such a thing as CarPlay… and, of course, only a portion of those care enough to make it a make or break decision factor.
I have a MacBook Pro, an iPad, an iWatch and have had iPhones for many years.
And… while I’ve HEARD the term “CarPlay”, I don’t know… or care… about it. Maybe there is something there I’d be interested in…
I just called my daughter. She also had “heard” of it… and she’s an All Apple person. She and her husband use Spotify for music. Don’t know/care about CarPlay either.
Sample size is small. I bet… if I were crazy enough to knock on everyone’s door in my subdivision this Saturday night, not one in ten know or care enough to give a hoot.
BUT… after I finish this post, I’ll check to see what CarPlay is about.
Follow-up: CarPlay doesn’t appear to offer anything where I’m interested in switching from my status quo. A couple other folks have commented similarly on the AAPL board. This seems to be a case where the Apple folks are so in love with themselves they don’t realize they’re in a bubble.
Rob, professional skeptic?
Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.
p.s. Has anyone heard any more about the Tesla phone? Now I understand why Musk fired that salvo.
You’re just repeating misinformation. There is no Tesla phone, nor any reason there should be or would be. You are seriously saying you “understand” something you just randomly believe because you think you remember somebody said something once?
Of course you could argue that Tesla already makes a phone, it’s just something you drive around in rather than put in your pocket. Since it connects to the internet, supports a browser, and has speakers and microphones, you could use any web based voice connection and there you go, a phone that can make voice calls.
Follow-up: CarPlay doesn’t appear to offer anything where I’m interested in switching from my status quo. A couple other folks have commented similarly on the AAPL board. This seems to be a case where the Apple folks are so in love with themselves they don’t realize they’re in a bubble.
You’re first-hand observations on this topic mesh. My wife is all-Apple and has a Toyota Prius. She could tie her phone via Bluetooth into her dash for music, but, she prefers listening to NPR to and from work while listening to music at the office and here at home. I mentioned Apple CarPlay to her? “Say what?”
I think the Apple spokeswoman in this article did a couple of rails of ground up unicorn horn to issue such crazy statistics. But I also bet all OEMs not working with $AAPL on the dashboard interface and data-share are thinking, “how do we control, not outsiders, this new vertical revenue enhancer through data sharing?”
I don’t see Musk giving one-inch to Apple on this issue. And I expect deeper thinking OEMs are studying the Tesla OTA experience and wondering, “can we possibly expect a gravitation to Apple CarPlay which is unavoidable?” Musk sees his ownership of driver’s data as an imperative. Why? Why does John Galt want “ownership” of ALL your car’s data?" (You got to think Bezos has raised a toast to his nemesis with a “You sly bastud!” salute.)