The IT Nerd

I have to admit that I was trying to find a non cynical way of speaking to this story from Reuters. But I can’t so I am going to call it out for what it is. Let’s start with this:

General Motors plans to phase out widely-used Apple CarPlay and Android Auto technologies that allow drivers to bypass a vehicle’s infotainment systems, shifting instead to built-in infotainment systems developed with Google for future electric vehicles.

Apple CarPlay and Android Auto systems allow users to mirror their smartphone screens in a vehicle’s dashboard display.

GM’s decision to stop offering those systems in future electric vehicles, starting with the 2024 Chevrolet Blazer, could help the automaker capture more data on how consumers drive and charge EVs.

GM is designing the on-board navigation and infotainment systems for future EVs in partnership with Alphabet Inc’s Google.

This decision doesn’t seem to affect gas powered vehicles. But GM has committed to not making gas powered vehicles in 2035. So read into that what you will.

The question is why would GM go this route. Here’s why:

Buyers of GM EVs with the new systems will get access to Google Maps and Google Assistant, a voice command system, at no extra cost for eight years, GM said. GM said the future infotainment systems will offer applications such as Spotify’s music service, Audible and other services that many drivers now access via smartphones.

“We do believe there are subscription revenue opportunities for us,” Kummer said. GM Chief Executive Mary Barra is aiming for $20 billion to $25 billion in annual revenue from subscriptions by 2030.

That’s right, it’s all about the Benjamins. I am guessing that GM traded having CarPlay in their cars to get Google to help GM to do something that would result in a recurring revenue stream. Because recurring revenue is what all the cool kids want these days.

The thing is GM is going to regret this.

Android Auto and Apple CarPlay are must haves when buying a new car. In my mind, deleting Apple CarPlay is going to make a lot of Apple fans simply say “There’s no Apple CarPlay in this EV? Over to the competition I will go.” But the flip side to that is that they might be counting on being like Tesla where they don’t use Apple CarPlay and Android Auto, but their cars still sell. Though many Tesla owners who want CarPlay have used a hack to get it. Ditto for Android Auto. That implies that these are features that at least some Tesla owners want. Despite what Elon Musk may think.

Don’t be surprised if GM reverses course if their EV sales aren’t what they think they should be relative to the market, and when they dive into why, this decision to dump Apple CarPlay comes up as a factor. It may take a few years to get there. But I am sure that they will regret this decision.

This entry was posted on March 31, 2023 at 12:26 pm and is filed under Commentary with tags Apple, GM, Google. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.