Imagine that you’re interested in purchasing a new phone. Usually, the question goes as far as, will my new iPhone work well with the Windows computer that I have owned for over a decade? I think we can all answer that question. Extend this notion to purchasing a car. Would you prefer an operating system powered by Apple or Android? Suddenly, a new phone becomes a big deal, as it may influence your purchasing decision of certain cars.
This imaginative scenario seems to increasingly become a reality. Google’s Android Automotive team started in 2015, introducing an Android operating system for cars. The system is open-sourced and installed on the in-vehicle hardware. It is maintained by Google, which is a viable partnership for car manufacturers. As Google has the in-house resources to take care of software updates and continuous improvements regarding quality. It entered the market in 2020 through a partnership with Polestar, resulting in a wave of cars with Android displays.
Apple is close behind and rumoured to take it a step further with its newest version of Carplay software. The difference with Android Automotive is that it actually integrates components from the vehicle, like speed. It announced partners like Volvo and Porsche, for its launch in 2023. It remains a big step for Apple to license its software like Google has. However, they seem backed into the corner because if they refrain from doing so, Android will have a large chunk of control regarding automobile operating systems, which could make integration with Apple features difficult.
Google’s operating system did not only drive Apple to new extremes through forcing it to license its software. Additionally, it is pushing the traditional car manufacturing industry out of its comfort zone too. Car manufacturers have taken it upon themselves to create in-house operating systems to display in their cars. This rapid development fascinates me as the mobile tech industry innovates yet another way to be an unmissable part of our lives. Do you think this development will disrupt how we purchase cars? Or will it be a feature that is easily overlooked by the consumer? Let me know in the comments!
References:
Android, n.d., What is Android Automotive? | Android Open Source Project Available at: https://source.android.com/docs/devices/automotive/start/what_automotive (Accessed 2 October 2022).
Apple, n.d., iOS – CarPlay – Apple Available at: https://www.apple.com/ios/carplay/ (Accessed 2 October 2022).
Mims, C., 2021 Apple and the End of the Car as We Know It. Wall Street Journal. Available at: https://www.wsj.com/articles/apple-and-the-end-of-the-car-as-we-know-it-11621656010 (Accessed 2 October 2022).
Mims, C., 2022 The Next Big Battle Between Google and Apple Is for the Soul of Your Car. Wall Street Journal. Available at: https://www.wsj.com/articles/the-next-big-battle-between-google-and-apple-is-for-the-soul-of-your-car-11664596817 (Accessed 2 October 2022).
Hey Tes, loved your article.
I wrote a piece on digitization in the automotive industry earlier. I find it fascinating to see how fast this massive industry is adapting technology.
During my research I also noticed that both Google and Apple had automotive projects in their funnels. Considering the industry for the past 60 years it is unheard of that so many new entrants are entering this value space.
This made me wonder how. How would these tech companies meaningfully compete in an industry which has been dominated by strong incumbents, relying on their previous learnings and Economies of Scale. In my personal opinion, this is because electric vehicles, and the technological opportunities they have brought with themselves change what customers will value in cars.
This is especially noticeable for self-driving vehicles. (Assuming that you can buy a reliable one in the near future) your decision will be centered around other aspects of the vehicle than they were for regular cars. You won’t care about the transmission, acceleration, or handling of the car. That service is reduced to getting you from point A to B, something that all self-driving cars can do in the near future. What you will care about more however is what you can do in your free time while getting from A to B. How well is the tech integrated in your car? Are you able to work efficiently while traveling? Does the car enable a great entertainment experience? These are all performance metrics that the decades-long expertise of GM is unable to deliver on better than a tech firm.
This is the opportunity that Apple and Google are homing in on. Unlocking and dominating this new value space in the automotive industry opened up in part by the introduction of EVs.