This seemed really interesting. I had no idea GM was doing this.
Connected cars and broadband wars • 9:48 AM
Clark Schultz, SA News Editor
The roll-out of 4G LTE high-speed wireless connections in all 2016 General Motors models could provide the automaker with new sources of revenue and jump-start tech initiatives of rivals. GM sees OnStar 4G leading to e-commerce revenue from transaction splits (fast-food, hotel rooms, entertainment, advertising), services, and data usage. Software upgrades pushed out via broadband connections could also save GM money on repair and warranty costs.
While execs with GM estimate OnStar will generate $350M in profit over the next three years, some analysts have aimed much higher with their projections. Gartner sees 10% of all revenue from the automobile industry generated from connected broadband platforms - a formidable mark which explains the increasing presence of Apple and Google in the sector. Partnerships between Silicon Valley and Detroit are expected to accelerate.
GM sits in a nice position to defend its turf against the tech heavyweights through its valuable OnStar property - while BMW, Audi, Nissan, and Tesla are also a few steps away from Internet-based revenue streams.
Other companies which might benefit to a degree from a connected car explosion: MBLY, NVDA, AMBA, SWKS, SBUX, DPZ, T.