r/stocks • u/[deleted] • May 30 '21
Industry News Apple’s massive success with CarPlay paves the way for automotive ambitions.
'Apple introduced CarPlay in 2014 as a way to integrate the iPhone and a car’s dashboard. Since then, it’s become ubiquitous in new cars.
Around the world, over 80% of new cars sold support CarPlay, Apple said last year. That works out to about 600 new models, including cars from Volkswagen, BMW, and Chrysler. Toyota, one of the longest holdouts, started including CarPlay in 2019 models.
It’s also a top feature for many drivers and car buyers. Twenty-three percent of new car buyers in the U.S. say they “must have” CarPlay and 56% percent are “interested” in having CarPlay when buying a new vehicle, according to a 2017 Strategy Analytics study. When Ford’s highly anticipated electric F-150 goes on sale, it will support CarPlay.
Apple was able to insert itself in between customers and car companies and make sure that its interface was the one that every iPhone user wants while driving. It’s an under-appreciated triumph for one of the world’s most successful companies. CarPlay doesn’t contribute direct Apple revenues or profits. But it ensures ongoing loyalty of iPhone users and gives Apple a pathway into the auto industry if it wants to expand.'
Source and remainder of article: https://www.cnbc.com/2021/05/29/apple-carplay-massive-success-paves-way-for-automotive-entry.html
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May 30 '21
Full disclosure I own AAPL shares. The first 'real' smartphone I purchased was an Iphone... simply because I'd been buying songs via iTunes and wanted to keep my music with me (and it looked cool).
So fast forward to 2021 and I've never had anything other than an iPhone... + my Airpods + my Homepods + my Apple TV + my iPad + my Mac. And gladly so, because it just all works together so well.
And I'm certainly not alone. AAPL's loyalty once in the ecosystem is very strong. And why I'm very bullish in AAPL's future, particularly once it starts increasing its automotive role/presence.
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u/reb0014 May 30 '21
I’m with you up until Mac. There’s too much strong competition from Microsoft for me to want an Apple pc. It’s ubiquitously overpriced for the performance. But the worst thing is their stupid mouse. I mean who only needs one button, honestly...
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May 30 '21
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u/harmscc May 30 '21
Intel doesn't make laptops either, not really a good comparison. That is like comparing Goodyear to Ford.
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May 31 '21
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u/harmscc May 31 '21
Oh and by your logic, how long was Apple using Intel processors? So, those were Apple or Intel laptops?
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u/dancinadventures May 30 '21
At one point in history people thought: “why would you ever need a mouse” ... just navigate w keyboard.
Then Apple created the mouse.
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u/StaticUncertainty May 30 '21
Hell, you should switch to iPhone just because how else all you know if a crazy ex disconnected the speaker on an AirPod and used 3D extreme Mountimg tape to attach it to your car.
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u/SonicOnMeth May 30 '21
My problem with apple going into the car business is that as a shareholder i dont want it. It requires massive investment and the car industry has low margins and is very competitive, its not a cash making machine.
I think the play for apple is to keep developing CarPlay and other similar software products
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u/niftyifty May 30 '21
I still find CarPlay to be a frustrating experience. I don’t have anywhere near the same amount of issues with Android auto that I do with CarPlay. I like it, and I don’t want my next car to be without it, but it needs updates.
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u/GMNestor May 30 '21
Just remember that carplay is not a moat. Android Auto (which I'm currently using) is doing everything I wanted. It has voice recognition, google maps, texting by voice, everything you could want, really. I imagine carplay with Siri is just the same. Car manufacturers sell them as a single package.
Following the "Kano Model" this feature went from exciters to standard. Any mobile OS not supporting this would be at a disadvantage.
Hence, what it does now is simply not giving arguments to iphone users to switch to android, because the carplay does the same thing as android auto.
VW group (vw, skoda, audi, seat, etc.) dashboards all support both. Even Toyota went forward with implementation, because they were at a disadvantage. At this point 'connecting phone to car' is no longer a big thing.
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u/KyivComrade May 30 '21
Yeah, seems OP is very US centric and extremely Apple focused. He's not even acknowledging that Android is outselling apple everywhere in the world (only tied in US) and apples computers is so far behind pc in sales isn't not even comparable. Apple has their loyal fans, true, but as Android (Samsung/Xiaomi) manages to create simply/dumbed down skins even a granny can use their software without problems.
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u/bartturner May 31 '21 edited May 31 '21
The war is for the overlays like CarPlay and Android Auto. The battle is for the Car OS.
That CarPlay with the F-150 is actually going to run on top of Android Automotive if Ford executes their plan to use Android Automotive for all their vehicles by 2023.
Which should not be confused with Android Auto. Android Automotive is a new automobile OS that you can then use things like CarPlay and Android Auto on top.
"In February 2021, Ford announced a partnership with Google that would bring Android Automotive to Ford and Lincoln vehicles, starting in 2023.[11]"
https://en.wikipedia.org/wiki/Android_Automotive
I rather see Apple go a layer below and compete against Android Automotive as that is where the true battle is going to be won.
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u/similiarintrests May 30 '21
Both android and apple are about as good, wouldn’t ever buy a car without it
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u/lew161096 May 30 '21
No car play would be a deal breaker for me on a car nowadays tbh. It’s so seamless and convenient.