Apple Inc wants to power the dashboard of your next vehicle, but first it must convince automakers that they will not end up surrendering future profits to the iPhone company like the makers of flip-phone handsets.
Apple on Monday gave a preview of a new generation of its CarPlay software that would migrate from its home on the entertainment screen to power everything in front of the driver.
While the move from one screen to another might seem like a small step for Apple, it is a huge leap in terms of the technological and business engagement between the iPhone maker and the world’s automakers.
Photo: EPA-EFE / Apple Inc
Electric vehicle leader Tesla Inc has proven the popularity of a large in-vehicle screen and fully integrated software with consumers. Automakers are pushing to control the relationship with consumers in the more software-dominated vehicle as a way to generate more profits.
The current version of Apple CarPlay, available in 98 percent of new cars in the US, is fundamentally limited in its capabilities.
CarPlay apps live on the entertainment screens of vehicles and can play music or podcasts after a user has connected their iPhone to the vehicle, but the software cannot control even basic functions of a vehicle, such as changing climate control settings.
Presenters at Apple’s developer conference on Monday showed a slide with the logos of more than a dozen automotive brands, including Ford Motor Co, Mercedes-Benz AG, Audi AG and Porsche AG.
Apple said the automakers are “excited” about the concept of dashboard displays that offer a more consistent Apple look and feel.
To do so, iPhones would communicate with a vehicle’s real-time driving systems for the first time — a critical step toward Apple potentially powering autonomous driving functions.
Representatives of some of those brands described their companies as interested, but said no decisions have yet been made for future models.
“We are working with Apple on this development project,” a Porsche spokesperson said.
Automakers are wary of Apple and other tech giants. They saw how phone makers such as Motorola Inc and Nokia Corp and the one-time powers of the music industry shriveled as iPhones and Android smartphones consumed those businesses.
“There’s no question this is a threat, because the automakers, particularly as we transition to software-defined vehicles, realize they run a significant risk of losing whatever ability they have to interact with the consumer unless they get their act together,” said Evangelos Simoudis, a Silicon Valley venture capital investor and adviser who closely follows connected vehicle technology.
At the same time, big automakers know their entertainment systems are a persistent cause of consumer complaints to quality scorekeepers at J.D. Power and Associates and other market research firms.
In China, younger consumers are turning their backs on established brands, in part because their connectivity does not match what Tesla or China’s own technology-industry bred electric vehicle start-ups offer.
The next generation of vehicles from major automakers are to have sprawling dashboard screens. Mercedes-Benz, for example, has shown a prototype Vision EQXX electric sedan with a display screen that is 121cm wide, and would offer functions such as an “efficiency assistant” that would calculate the most fuel-efficient route for a journey.
The competition now is over who would develop the software to power such displays, who would control the data flowing from the vehicle and the customers on board, and who would get to generate revenue as vehicles roll down the road.
Automakers do have one advantage over former phone handset makers: They are the gatekeepers for the critical electronic systems of vehicles, which are subject to extensive government safety regulation and hardware durability requirements that are far more stringent than those of the smartphone industry.
There are signs that automakers and technology industry companies are coming to terms. Alphabet Inc’s Google has agreements with General Motors Co, Volvo Cars and the Renault-Nissan-Mitsubishi Alliance to provide software for the next generation of systems. Amazon.com has cut deals with automakers to integrate its Alexa voice assistant in vehicles.
At Apple, Emily Schubert, an engineering manager for car experience, said during Monday’s conference that using the new software, “your iPhone communicates with your vehicle’s real-time systems in an on-device, privacy friendly way, showing all of your driving information.”
The software also provides hints at Apple’s future in autonomous driving.
While Reuters previously reported that Apple could release its own electric vehicle with autonomous feature as early as 2024 or 2025, moving its software to instrument clusters puts the iPhone maker closer to the key vehicle systems and controls Apple would need to access to provide autonomous driving software to other companies.
“Cars have changed a lot, with larger-sized screens and more of them throughout the car,” Schubert said during the keynote. “There’s an opportunity for iPhone to play an even more important role.”
Apple announced the software far ahead of its release to the public, saying vehicles using it would not be announced until late next year. Apple appears to be giving automakers plenty of time to customize the new CarPlay software, an acknowledgment that the final look of the software could be different for Fords and Ferraris.
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI
INFLATION WATCH: A rate hike in March would help keep inflation at 2.16 percent this year, although a weak currency and higher electricity rates are an issue, S&P said Moody’s Ratings and S&P Global Ratings have reaffirmed Taiwan’s sovereign credit ratings at “As3” and “AA+” respectively with a stable outlook on the back of high income and wealth levels, a strong institutional framework and robust external positions. The affirmations came as Taiwan’s economy is gaining momentum after quarters of slowdown induced by stubborn global inflation and monetary tightening. Taiwan’s strong fiscal and external buffers have improved relative to peers as evidenced by recent shocks linked to the COVID-19 pandemic and the ongoing US-China technology dispute, the two ratings firms said. “Taiwan stands as the epicenter of the global semiconductor supply chain, accounting
RIDING AI WAVE: : Most of its NT$15bn capital budget would be spent on packaging technologies used in AI and HPC chips and advanced testing technology, it said Chip testing and packaging service provider Powertech Technology Inc (PTI, 力成科技) plans to increase this year’s capital expenditure by 50 percent to expand capacity to meet growing demand for advanced memorychips used in artificial intelligence (AI) products. The company proposed to spend NT$15 billion (US$460.94 million) to expand advanced capacity and equipment, compared with a budget of NT$10 billion it planned three months ago. “We are seeing a recovery in market demand as well as new business opportunities. We will spend heavily on advanced packaging” equipment, Powertech chief executive officer Boris Hsieh (謝永達) told investors on Tuesday. “We will focus on ramping