Apple's New Car Software Could Be a Trojan Horse Into the Automotive Industry

With Apple's new CarPlay software announced in June, the company is '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,' reports CNBC. From the report: 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. Industry observers believe carmakers need to embrace software services -- and look at Apple's offering with skepticism -- or risk getting left behind. 'It's a really difficult time in the industry, where the car companies think they're still building cars. They're not. They're building software on wheels, and they don't know it, and they're trading it away,' said Conrad Layson, senior analyst at AutoForecast Solutions.

The new version of CarPlay could be a huge emerging revenue engine for Apple. First, if a user loves the iPhone's CarPlay interface, then they're less likely to switch to an Android phone. That's a strategic priority for Apple, which generates the majority of its revenue through hardware sales. Second, while the company doesn't yet charge a fee to automakers or suppliers, it could sell services for vehicles the same way it distributes iPhone software. In June, Apple revealed that it has explored features that integrate commerce into the car's cockpit. One new feature announced this summer would allow CarPlay users to navigate to a gas pump and pay for the fuel from the dashboard of the car, according to Reuters. Apple already generates tens of billions from the App Store, and stands to boost that if it ever decides to charge for services in cars...

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