Car Makers Promote Support Of Technology Brands Like Apple Inc. (AAPL), Google Inc (GOOG)
Spending on electronics for connected cars has continued to increase as vehicle modernization and electrification intensifies. However, for the most part, many automakers haven’t given much thought to what they use in their vehicles as long the components pass regulatory tests and are affordable. A major shift in the connected car world is in the air as automakers look to differentiate their products by siding with recognized brands like Apple Inc. (NASDAQ:AAPL).
That being said this is a double edged sword when it comes to aligning with Apple and Google, as it could give both tech companies a pathway into the car for the future as the car experience becomes increasingly technology based.
Currently, Google Inc (NASDAQ:GOOGL) and Apple have their Android Auto and CarPlay systems. While users may more closely associate Android and Carplay systems, BlackBerry Ltd (NASDAQ:BBRY)(TSE:BB)‘s QNX plays a crucial role in the underlying operating system in which many of those systems work. Carplay often is deployed on top of BlackBerry’s QNX. QNX is in an effect a white label operating system that allows the automaker to put its mark on the experience. On the chips side, Nvidia Corporation (NASDAQ:NVDA), Qualcomm, Inc. (NASDAQ:QCOM) and others are battling for connected car sockets.
Battle for the control of auto sockets
In the battle for smart car sockets, Nvidia has already won the heart of Tesla Motors Inc (NASDAQ:TSLA), a leader in car electrification.
Qualcomm’s chips are widely used by major automakers, including General Motors Company (NYSE:GM). Intel Corporation (NASDAQ:INTC) has inked partnerships with the likes of Land Rover and Jaguar, but wants to do more. Huawei, through its telematics arm Hi-Sense, is also trying to entice Western automakers to use its low-cost chips.
Automakers attach a higher value on connected car experiences, but there is need for justification. For that reason, using components from well-known suppliers, such as Apple, Qualcomm and Nvidia looks like a sensible strategy when trying to justify the cost.
Tesla is one automaker that seems to have known this from an early stage. The company uses Nvidia technology and has been promoting Nvidia very much.
Besides branding, security is another important consideration for automakers pushing into the connected vehicle arena. For that reason, the selection of car electronics components suppliers would require a lot of thinking on the security front.
There seems to be no shortage of competitors in the connected car components market, but that poses some challenges for automakers. Deciding on who to side with and what the future holds for you and your vehicle electronics supplier can be uncertain for many automakers.
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