Google and Audi are likely to announce a strategic partnership for implementing in-car mobile technology in latter's vehicles. Many experts have tried to draw a parallel between the strategy of Google and Apple as the latter has also collaborated with few auto makers in the past. With two big corporates, Google and Apple competing against each other, one can only expect an expansion of mobile platforms in the global auto market in years to come.
If the joint venture between Google and Audi emerges as a success, it will see the development of in-car entertainment and information systems based on Google's Android Operating System. This deal is expected to be beneficial for both the companies as they get a chance to look forward for growth beyond set boundaries. On the other hand, Apple too would be trying to explore options in the auto sector to ascend forward. As interesting as it sounds, the real battle in the competitive zone will get even more enticing in the near future. Both, Google and Apple plan to compete and outperform other by striking deals with auto manufacturers for developing innovative in-car technology.
In-car entertainment has gained huge momentum due to mass awareness and lowered costs of devices like LCD screen/monitors, along with media playable technologies. Owners look forward for a luxurious drive, all-round in-car entertainment and full connectivity with smart applications. Auto companies too are keen to incorporate in-car entertainment systems to lure buyers. Interestingly, companies like Google and Apple, which have right infrastructure and technologies to get it done for auto makers also end-up as beneficiary rivals. According to some analysts, Google already marks presence with its maps in several cars. It has been around for quite a while now and a collaboration with Audi is only going to make things better for the technology giant. It is believed that the tie-up with Audi will help Google to expand its Android platform through implementation into vehicles.
Greg Sterling, Principal Analyst at Sterling Market Intelligence, reportedly said, “Google competitors Apple and Microsoft are obviously involved in similar efforts and have a head start. Thus there's a defensive element here. However, Google also sees a significant opportunity to reach an audience that it currently cannot effectively reach. In some ways, it's analogous to Google trying to get into TV.” Sterling also said that the auto sector is the new arena to extend benefits of Internet access to consumers. This is going to induce competition between those players who can incorporate such technologies in vehicles. He called Google's initiative as a remarkable approach and wise one too.
To further clarify, Sterling said, “Google can potentially deliver services, apps and advertising to the consumer through the in-car Internet experience. If you step back, you see Google expanding across platforms: PC, mobile, wearables, TV (the living room) and now more extensively into the car.” Interestingly, Google and Audi are likely to announce collaborative efforts with other companies too, including the chip maker Nvidia. The endeavour would be to incorporate advanced Android Operating System in next-generation cars. Thilo Koslowski (who specializes in advanced in-car electronics), an analyst at the research firm Gartner Inc., reportedly said, “The car is becoming the ultimate mobile device. Apple and Google see that and are trying to line up allies to bring their technology into the vehicle.”
As the news goes around, Apple was first to take such initiatives. Now, Google is trying to get past Apple’s “iOS in the Car” initiative that was announced in last summer with the introduction of iOS 7. Implementation of this operating system in a car allows a seamless integration and synchronisation with an iOS device. It enhances the driving experience as owners get a number of benefits. As explained by Apple on its website, a car with an iOS allows connectivity and sync with the iPhone 5 or an advanced version. This interactive platform makes use of car’s built-in display and controls. It allows passengers to easily make phone calls, access stored music, send and receive messages and get directions while travelling, etc. Apple explained further “It’s all designed to let iPhone focus on what you need, so you can focus on the road.”
In the current scenario, both Google and Apple have the opportunity to unleash their business plans and the market conditions are also favouring them. As a matter of fact, the overall market is expected to grow at a rate of 12.1 per cent till 2016. Based on the present economic conditions, the market will be worth $14.4 billion by 2016. Luca DeAmbroggi, Senior Analyst for automotive infotainment at his, had predicted, “In the automotive market, wireless connectivity demand is racing ahead of older wired technologies as applications increasingly focus on supporting mobile devices and cellular communications.”
While giving more insight into the kind of development that one can expect, DeAmbroggi further said that the legacy wired USB connectivity is now being challenged by wireless mechanisms in vehicles. Incorporation of Bluetooth technology for data transfers between fixed and mobile devices over a short range and embedded cellular for two-way wireless telematics connectivity are getting popular among customers.
