For nearly 15 years, Apple has had a clear strategy: It charges (very much) for its hardware and gives away practically all of its software. It seems that this system which has given such good results is about to end. And what’s more, for the first time in nearly 40 years, the company’s software will be able to be installed on machines that don’t have the bitten apple logo. According to TechSpot, the Tim Cook-led company is going to start charging for Apple CarPlay not directly to users, but to car brands, who will be able to install it natively in their vehicles.
This new business model won’t start with current versions of the company’s in-car operating system, but with the next generation, known as “next-generation Apple CarPlay.” This change marks a rare return to software licensing for Apple,
The Apple brand has evolved rapidly in recent decades, creating a harmonious synergy between its software and hardware. By licensing your next generation CarPlay to automakers, you give them control of the “hardware.” It’s a radical change in the way the company operates, marked by a determination to keep the Apple experience firmly under its control.
The next generation of CarPlay is going to launch on systems from high-end manufacturers Porsche and Aston Martin, Unlike regular Apple CarPlay, which is widely available in vehicles across the price spectrum, it seems like Apple is giving a clear signal that we’re unlikely to see the next generation of CarPlay in “any” car, as Is in case. Moment.
In the current, completely free version, the cars run an integrated version of Apple’s software through the user’s iPhone, not through the vehicle’s main entertainment unit. That is, the entire process executes on Apple-brand devices, not car computers.
Prevents hardware problems like the current Apple CarPlay system slowing down or stopping working. This is a move by Apple to manage any potential damage to its reputation from the potential use of its software on inferior hardware, and serves to maintain a firm. Controlling Apple’s image as a premium brand.
If Apple has decided that Apple CarPlay can work natively in Porsche and Aston Martin vehicles, it is probably because it is sure that its operating system will work without any problems in them. In addition, this decision highlights Apple’s ambitions to strengthen its reputation and continue its progress in the market of luxury products, where the margins are much higher: it is very likely that it will consider licensing its software in these cars. Is charging a lot of money for this.
This is not the first time that Apple has licensed an operating system
The decision is a stark contrast to the last time Apple handed over the keys to one of its operating systems. In December 1994, when Steve Jobs was still in exile, Apple’s then-CEO Michael Spindler signed a deal with Power Computing to license its Macintosh operating system. This was an attempt to combat declining sales and the growth of PCs running Microsoft-licensed Windows software, and the company thought it could help increase revenues. The effect was quite the opposite: very cheap Mac clones became more popular, while the $50 Apple received for the sale of each clone did not come close to compensating for the decline in Mac sales caused by the failed strategy.
Although Apple’s software licensing strategy with the next generation of CarPlay appears to be on very solid ground, it raises another interesting question: What chipset does Apple’s CarPlay operating system run on? Nvidia is a major OEM that supplies chips to automakers based on the ARM architecture, which is used by Apple. But even if you could easily run Apple’s code, it would mean that Apple would hand that code over to Nvidia (or another chip supplier) and work with their teams to make sure everything runs smoothly. Let’s go.
This scenario is somewhat unlikely, especially given Apple’s determination to control the user experience as much as possible. Again, it seems almost inevitable that cars running the next generation of CarPlay will also use Apple processors, but this is pure speculation, as nothing has been said about this.
What about the expected Apple Car?
It seems that the next generation of CarPlay comes from Apple’s most secret project at the moment: the famous Apple Car. The latest rumors suggest that the company’s car, which may take a decade in development, could be introduced in 2028. However, without this the project cannot succeed and has been repeatedly beset by major problems and top executive turnover.
If the Apple Car had already launched, it seems unlikely that Apple would have licensed the next generation of Car Play, because – without a doubt – the experience it provides in the car is something that Apple would Would especially love to keep for myself. The car as a key point of differentiation. By licensing the next generation of CarPlay, Apple at least gets a relatively small return on its investment, but it also prevents Android Automotive from becoming the new default operating system for the most exclusive cars.
However, this raises even more questions: Although it is strategically important to prevent Google from taking over the in-car software market, what if the Apple Car is eventually released? Will Porsche, Aston Martin and others be left in the lurch? Or will Apple continue to license its new generation of Car Play with some sort of user interface differentiation that makes it possible? Will the potential additional sales and licensing fees from Apple silicon be worth continuing this initiative? We will know in a few years.
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