Apple Taking advantage of the popularity of the iPhone, we are entering the automobile industry. Automakers have little idea of how they feel about this.
Apple announced the next-generation car software CarPlay in June. It takes over the user interface of all internal screens and replaces the gas gauge and speed dial with a digital version with the driver’s iPhone. CarPlay has suggested helping automakers sell their cars.
Emily Schubert, Apple’s engineering manager, said CarPlay is installed on 98% of new cars in the United States. She provided shocking stats: 79% of US buyers buy a car only if they support CarPlay.
“This is a must-have feature when buying a new car,” Schubert said in a presentation of the new features.
The automotive industry faces unattractive choices: offer CarPlay, give up potential revenue and opportunities to ride major industry shifts, or develop your own infotainment software and buy new cars. Spend a lot of money to meet the declining audience of car buyers without CarPlay.
Automakers regularly sell additional services and features to vehicle owners on a regular basis as vehicles connect to the Internet, gain automated driving capabilities, and move from gasoline-powered to electric and battery-powered.
According to a McKinsey report, the automotive software market will grow 9% annually through 2030, faster than the automotive industry as a whole. McKinsey analysts predict that automotive software could account for $ 50 billion in sales by 2030.
Apple wants part of the pie.
GMNot listed on Apple’s slides have already earned $ 2 billion annually from in-vehicle subscriptions and are expected to grow to $ 25 billion annually by 2030. TeslaDoes not support CarPlay, but recently began selling “FSD” driver assistance features such as automatic parking and lane keeping as a $ 199 monthly subscription.
Chinese car makers are starting to make electric cars. Deeply integrate with the appAllows drivers to be repaired, contact other owners, and replace rented batteries.
Goldman Sachs analyst Rodhall said in June about the next generation of CarPlay, “We believe this will ultimately allow Apple to offer services that leverage the car sensor platform.” ..
The next generation of CarPlay will require a great deal of support from automakers to allow Apple’s software to access its core systems. Apple has proposed to secure cooperation from several major automakers.
“Automakers around the world are excited to bring this new version of CarPlay to their customers,” Schubert added, displaying slides from 14 automaker brands, including: FordMercedes Benz and Audi.
Industry observers believe that automakers need to adopt software services and should be skeptical of Apple’s products. Otherwise, you run the risk of being left behind.
“It’s a very difficult time in an industry where car companies still think they’re making cars. It’s not. They’re building software on wheels, they don’t know it, and they’re trading. “, Says Conrad Rayson, Senior Analyst at AutoForecast Solutions.”
The new version of CarPlay could be a huge new revenue engine for Apple.
First, if users like the iPhone’s CarPlay interface, they are less likely to switch to an Android phone. This is a strategic priority for Apple and generates most of its revenue through the sale of hardware.
Secondly, the company does not Still charge automakers and suppliersYou can sell services for vehicles in the same way as you distribute iPhone software.
In June, Apple revealed that it was considering the ability to integrate commerce into the car’s cockpit. One new feature announced this summer allows CarPlay users to move to petrol pumps and pay for fuel from the car’s dashboard. According to Reuters..
Apple has already generated tens of billions of dollars from the App Store and is in a position to help if it decides to charge for car services.
For example, in 2021, Apple’s total revenue from the App Store reached $ 70- $ 85 billion. It will take 15% to 30%, depending on the app. Apple currently does not take the percentage of purchases made in the iPhone app for physical goods or services.
The new CarPlay also allows Apple to collect a high level of knowledge and data about how people use their cars.When it’s done, it’s valuable information Released a private carWas below Very secretive development For many years. (Apple’s car group and its CarPlay team are organized into separate divisions.)
For example, people can use Apple’s Maps app to give companies insight into which routes are the most popular and when they have the most traffic. You can also see which CarPlay apps are gaining momentum and downloading.
In a memo earlier this year, Morgan Stanley analysts speculated that advances in autonomous driving could free up trillions of hours a year for Apple to deal with new services and products. This is a potentially huge market.
“How many hours is the value of human time in a car that has nothing to do? It depends on who you ask … but (and this is our view) 1.2 trillion hours times is very That’s a big number, “said an analyst at Morgan Stanley in the year he wrote this earlier.
Apple says heavy hitters such as Honda, Nissan and Renault are “excited” to support the new CarPlay. The 14 brands shown on Apple’s slides delivered more than 17 million vehicles in 2021.
But car companies may not be as excited as Apple suggested. Few have announced models that support the new CarPlay, and most are uncommitted.
Land Rover, which appeared on Apple’s slides, is looking for ways to “work with Apple” to become a “part” of the infotainment system, a spokeswoman said. “It’s too early to comment on future product offerings,” a Land Rover and Jaguar spokeswoman added.
Mercedes-Benz described its CarPlay commitment as a “discussion” with Apple.
A Mercedes-Benz spokeswoman said, “In general, we evaluate all possible new technologies and features internally.”
lack of Commitment from automakers may be a matter of timing and product cycle: Apple says cars will begin to be announced “late next year.” But the cool reaction may be because the new CarPlay has made a big difference in Apple’s relationship with the car.
With the new CarPlay, the car’s real-time system needs to return that information to the user’s iPhone, where it is analyzed, integrated into Apple’s own software, and displayed on the car’s screen. Apple’s interface also includes vehicle control. According to Apple’s promotional video, users can turn on the air conditioner by tapping an Apple-designed touchscreen button.
“It’s worth noting that gaining control of these route functions effectively shifts the in-car experience from the hands of the automaker to Apple,” said Jean Münster, founder of Loop Fund. I’m writing in a notebook.
Whether automakers give up control of the in-car experience can be strategically important to the automotive industry.Tesla Rivian Perhaps for strategic reasons, it has avoided Apple CarPlay over user protests (although Apple CEO Tim Cook reportedly avoided it. Ride On a Rivian truck earlier this month. )
If in-vehicle computers and screens primarily display Apple’s interfaces, automakers will be less able to sell their services to their customers. You may also lose the ability to define customer relationships with online services and apps.
“The purpose of the game must be for OEMs.’When these services are launched, I have to sit at a table somewhere like I put my finger in the pie,” Ana of Radio Free Mobile said. Liszt Richard Windsor said. “To do that, users need to keep their smartphones in their pockets when they get into the car. The moment they turn on CarPlay, Android Auto, Android Automotive, etc., car makers are really in trouble.”