Google and Apple Race for a Piece of the Auto Market

In the automotive market developments are constantly surfacing that don’t just hint at a world of interconnected and automated driving, they scream it. Two tech giants we don’t normally associate with cars are poised to disrupt the market. Google’s push to get an autonomous car on line has been going since 2010, and Apple has been secretly working on a car they plan to push out in 2020.

As of today there’s no news on what exactly Apple’s car is going to look like, but you can bet Apple will want to compete head-to-head with the Google car. Will the Apple car be autonomous? We’ll get to that later, but for now let’s just say no one but the Apple insider knows, and they’re not telling.

Both of these tech companies are currently making a mark on the auto industry with their “smart” products--Google’s Android Auto app, which works with the Android Lollipop OS, and Apple with CarPlay, which works with the iPhone iOS. Apple’s watch is a separate smart device capable of wireless interconnectivity with vehicles.

The interesting thing is this: due to the potential for attracting tech-savvy spenders, automakers are rolling out apps to interface with the Apple Watch. Why is this interesting? Because as it’s happening, Apple is also designing a car to compete with those very same automakers. However, the big fish like BMW and Porsche, to name a few, don’t view Apple as a potential threat. That’s because 2020 seems distant and right now they are eager to get in on the hype and the Apple Watch customer base.

The Apple Watch customer base is worldwide, of course. But you can’t buy the Apple Watch anywhere for less than you can buy it in America, as is illustrated here

Is this a strategic move on Apple’s part? Perhaps they view America as the testing ground for the watch, and eventually, for the Apple car. In that scenario, Apple would be seeking to dominate the American market by offering a lower price on its new tech here in the States. In turn, the American investor and consumer will influence the global market. But will Apple offer Americans a lower price on the car? And what will the car look like?

There’s no way of knowing the answer to these questions. One can easily envision a situation in which Apple releases an autonomous car that will sync with whatever version of the watch is out in 2020. In February, CNN Money reported sightings of a mysterious sensor-filled van registered to Apple. Apparently this van was equipped with sensors that are capable of doing more than “Google-style street mapping.” If the trend we’re seeing right now continues, Apple will seek to one-up Google’s autonomous car, and vice versa. Google will have to have some particularly keen ears to the ground because of the level of secrecy Apple is maintaining.        

In terms of current interconnected driving opportunities, Hyundai just became the first manufacturer to incorporate Android Auto in its Sonata model. Android Auto is the counterpart to Apple’s CarPlay. With Android Auto, the user can control steering through voice command, and they can access Google maps through voice command, too.

Just like Apple, Google is integrating their technology with top car manufacturers, even as they design a car to compete. But big names like Audi and Ford are in the race to release a driverless car within the next five years. So we'll see if Google and Apple will be more than a bug on the windshield, so to speak, of an already highly competitive auto manufacturing market.      

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