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Auto Applications Store is Coming
1. The
Auto
Application
Store
is
Coming
!!!
By
Dave
McNamara,
Autotechinsider.com
March
2010
“Hand-held
Revolution”:
Smartphone
Connectivity
driving
New
App
Software
Today,
only
about
20%
of
the
population
has
powerful
phones.
Smartphone
owners
are
those
of
us
that
can
afford
monthly
data
plans
for
constant
Internet
connections
and
the
capability
to
download
applications
to
their
phone.1
These
are
the
people
who
are
participating
in
the
“hand-‐held
revolution”
that
is
also
increasingly
capturing
the
imagination
of
the
driving
public.
As
an
owner
of
a
Droid2
on
a
Verizon
3G
data
plan,
getting
a
new
application
for
my
phone
creates
the
same
excitement
as
going
into
a
record
store
in
the
1960-‐70’s
to
obtain
the
latest
new
release.
There
is
a
sense
of
excitement
and
discovery.
More
importantly
downloading
applications
is
easy,
quick
and
affordable,
that
is
once
you’ve
bought
into
the
expense
of
the
smart
phone
and
its
data
plan.
A
whole
new
world
has
opened
up
–
applications
to
inform
you
(e.g.
Fox
News
widget),
entertainment
you
(e.g.
YouTube),
provide
a
useful
tool
(e.
g.
Bubble/plumb
level)
and
delight
you
(e.g.
BumpTM
to
swap
content/info.).
Many
have
devices
such
as
the
Kindle
and
iPad
have
built
in
connectivity
-‐
3G
cellular,
Wi-‐Fi
and
ever
present
Bluetooth.
The
automotive
manufacturers,
notably
Ford
with
SYNC,
have
announced
the
launch
of
their
apps
store
with
Pandora
(Internet)
Radio,
Facebook
and
Twitter
as
the
cornerstone
apps.
A
key
infotainment
auto
supplier,
Continental,
has
embraced
the
Android
platform
and
is
presently
launching
AutolinqTM
as
their
approach
to
an
open
platform
to
develop
and
make
available
apps3.
We
are
to
expect
smart
phone
penetration
to
reach
about
40-‐50%
in
2012,
which
will
drive
the
creation
of
automotive
focused
apps
stores.
Recognizing
this
growing
trend
several
questions
come
to
mind:
• Will
Auto
Application
Stores
(AAS)
emerge
as
important
revenue
and
customer
satisfaction
initiatives?
What
is
exactly
the
business
model?
• What
automotive
applications
will
emerge
and
how
will
they
be
developed?
What
will
be
the
partnership
model
between
the
vehicle
OEMs,
auto
elecs.
Suppliers
and
new
third
part
software
developers
from
the
Consumer
Electronics
(CE)
community.
• Will
applications
be
created
by
the
vehicle
manufacturers
or
third
parties
will
they
originate
from
a
thriving
developer
community??
• Will
Android
or
Apple
emerge
as
the
software
platform
or
will
a
new
automotive
software
platform
such
as
GENIVI4,
Microsoft
or
QNX
Car5
emerge.
1
Altman
Vilandrie
data
www.altvil.com
2
A
recommended
site
for
Android
users,
www.droidforums.net/forum/
3
www.conti-‐
online.com/generator/www/de/en/continental/automotive/themes/passenger_cars/interior/connectivity/
autolinq/pi_autolinq_en.html
4
www.genivi.org/
5
www.qnx.com/products/qnxcar/
Information
provided
is
for
internal
use
only
and
not
for
publication.
Autotechinsider
LLC
1
2. The
Auto
Application
Store
is
Coming
!!!
By
Dave
McNamara,
Autotechinsider.com
March
2010
Look
to
the
Apple
App
Store
for
Answers
Phone-‐based
applications
have
been
with
us
for
several
years
now.
We
need
to
look
to
Apple
to
understand
and
see
how
the
automotive
application
store
might
evolve.
The
first
$500
iPhone
was
launched
in
June
2007
to
a
somewhat
skeptical
world.
Initial
only
a
few
select
applications,
about
eleven,
were
available
integrated
as
part
of
iPhone
software.
These
early
basic
apps
were
quickly
followed
in
a
few
months
by
an
application
store,
as
we
know
it
today.
The
rest
is
history!
Today,
applications
purchase
is
a
big
business:
• 30
new
applications
created
each
month,
• over
1
million
are
available
,
• with
a
revenue
of
about
$200
million
a
month.
The
Apple
apps
store
has
set
the
tone
for
other
stores.
Most
Apple
apps
are
being
priced
at
less
than
a
dollar,
the
cost
range
being
$.99
to
$4.99.
Entertainment
apps
cost
more
and
the
most
popular.
According
to
Gravity
Tank,
users
spend
about
$60-‐65
a
year.6
Recent
research
conducted
by
Autotechinsider
LLC
through
the
Linkedin
(www.linkedin.com)
polling
application
is
that
most
of
us
(over
138
responded)
want
free
apps
but
are
willing
to
consider
paying:
• 46%
of
respondents
ONLY
obtain
FREE
apps
for
their
smart
phone
• 15%
of
respondents
PURCHASE
apps,
the
vast
majority
paying
less
than
$5
per
month,
only
1%
willing
to
pay
more
than
$5.
• $18%
of
the
respondents
are
intrigued
by
the
concept
of
an
AUTOMOTVE
APPS
Store
The
Automotive
Application
Store
Business
Model(s)
A
key
question
is
how
will
the
AAS
work
exactly?
How
will
automotive
applications
be
encouraged,
submitted,
verified
and
lastly
how
will
payment
be
made?
There
is
a
balance
between
helping
developers
get
to
market
quickly
with
a
viable
revenue
stream
and
overall
customer
satisfaction.
Customers
obviously
prefer
that
applications
are
free.
Our
research
at
Autotechinsider.com
research
has
verified
that
most
smart
phone
user
are
paying
less
than
$5
month
for
applications
and
are
predominately
obtaining
free
applications,
but
considering
paying
for
premium
apps.
We
expect
that
the
two
business
models
to
emerge
will
be
supported
by
the
vehicle
manufacturers,
that
is
one
that
is
advertizing
or
marketing
based
and
the
other
largely
user
funded.
I
expect
the
initial
model
adopted
by
the
vehicle
manufacturers
will
be
marketing
based,
that
is
the
initial
focus
will
be
on
providing
an
applications
store
as
primarily
a
tool
to
increase
customer
satisfaction.
The
app
store
in
the
marketing
business
model
is
an
important
tool
to
improve
customer
satisfaction
amongst
the
growing
smart
phone
demographic
and
to
create
a
fast-‐to-‐market
environment
for
new
features.
As
Ford
SYNC
has
indicated
the
smart
phone
generation
is
exactly
the
new
customer
the
auto
OEM
wants
to
attract!
Potentially
AAS
sponsored
by
OEMs
will
have
the
additional
benefit
lower
6
Gravity
Tank
is
an
innovation
consulting
company
www.gravitytank.com
Information
provided
is
for
internal
use
only
and
not
for
publication.
Autotechinsider
LLC
2
3. The
Auto
Application
Store
is
Coming
!!!
By
Dave
McNamara,
Autotechinsider.com
March
2010
software
development
costs.
Premium
applications
that
require
user
fees
will
follow,
most
likely
as
enhancements
to
basic
free
applications.
Applications
that
require
on-‐going
subscription
costs
due
to
hosting
costs
are
a
possibility,
but
this
author
envisions
that
most
likely
these
applications
could
be
advertising
funded.
Ford
has
set
the
tone
by
providing
Traffic,
Directions
and
Information
(TDI)
for
the
first
three
years
with
out
a
monthly
fee.7
Even
though
Ford
has
teamed
with
MapQuest
and
Google
Inc.
to
bring
street
directions
and
other
information
to
SYNC
owners,
other
valuable
data
base,
such
as
weather
data
and
Points-‐of-‐Interest
data
for
niche
applications
-‐
sight
seeing,
etc.
In
summary,
it
is
difficult
to
project
a
large
market
of
paying
customers
for
premium
apps.
As
several
people
who
we
surveyed
stated,
“my
requirements
are
largely
met
by
free
apps”.
What
Applications
will
we
find
on
the
Auto
App
Store?
A
key
questions
is
what
are
the
applications
that
most
interest
the
automotive
customer.
At
the
2009
Consumer
Electronics
Show
(CES),
Ford
announced
the
suite
of
new
off-‐board
navigation
and
information
base
applications
working
through
a
voice
portal.
At
the
2010
CES,
the
concept
of
an
application
store
with
addition
Internet
radio
based
applications,
news
services,
Twitter
and
Facebook
were
added
-‐
stream
Pandora
and
tweet
hands-‐free.
More
importantly,
Ford
announced
support
for
third-‐party
applications
and
will
provide
a
SDK
to
developer.
At
CES
there
was
a
line
of
potential
developers
at
the
Ford
both
in
North
Hall
asking
for
the
SDK.
8
As
we
detailed
in
our
2010
CES
Report
(see
www.autotechinsider.com
for
report
availability
and
pricing),
Ford
has
created
an
intriguing
new
developer
community
and
alliance.
The
engagement
with
the
University
of
Michigan,
as
led
by
Ford
Researchers
has
evaluated
the
100,000
or
so
iPhone
applications
to
determine
what
should
be
a
“short
list”
for
introduction
on
SYNC.
A
new
project
called
“American
Journey
2.0”
is
underway9.
As
expected
social
networking,
navigation
and
mobility
information
are
important
to
the
new
generation
of
highly
connected
drivers.
The
following
are
a
few
new
applications
being
considered.10
7
http://media.ford.com/article_display.cfm?article_id=30444
8
http://articles.latimes.com/2010/jan/08/business/la-‐fi-‐ces-‐ford8-‐2010jan08
9
www.autoevolution.com/news/ford-‐to-‐upgrade-‐sync-‐with-‐american-‐journey-‐20-‐project-‐12709.html,
http://media.ford.com/article_display.cfm?article_id=31285
10
www.gearlog.com/2009/12/ford_announces_app_store_for_s.php
Information
provided
is
for
internal
use
only
and
not
for
publication.
Autotechinsider
LLC
3
4. The
Auto
Application
Store
is
Coming
!!!
By
Dave
McNamara,
Autotechinsider.com
March
2010
What
are
the
new,
or
rather
not
yet
announced,
applications
that
we
should
expect
to
be
targeted
towards
the
automotive
customers.
• The
majority
of
applications
will
be
enhancements
to
existing
mobile
applications:
o created
for
the
smart
phone
by
the
consumer
electronics
development
community
that
are
“enhanced”
adapted
to
work
in
the
vehicle
in
a
safe
and
effective
manner,
i.e.
automotive
user
interface
creation.
o Ford
SYNC
in
providing
an
SDK
(API)
allows
developers
to
map
cell
phone
(buttons)
to
the
Ford
Instrument
panel
controls
(hard
buttons
and
voice
interface)
• Other
applications
will
be
cell
phone
based
portals,
using
voice
technology
as
a
significant
new
user
interface.
An
example
is
Aha
Radio.11
o 3G/4G
connectivity
enables
the
phone
to
become
a
useful
portal
with
powerful
search
capabilities
to:
home,
office
and
other
cars
Traffic,
weather
and
location
based
services
o a
remote
control
device
to
home,
office
and
vehicle
for
customization,
security,
energy
efficiency,
etc.
New
home
connectivity
standards
emerging
Machine-‐to-‐Machine
interfaces
(M2M),
new
applications
that
will
be
context
aware
and
able
to
configure
your
vehicle
and
home
accordingly
• More
entertainment
apps
-
new
video
and
mobile
TV
applications
with
new
search
applications.
We
have
seen
at
CES
the
introduction
of
powerful
new
widgets
that
streamline
search
and
integrate
new
Internet
applications
with
video
(e.g.
my
sport
scores,
my
news,
etc.).
Companies
such
as
Gracenote
are
working
on
enabling
these
new
entertainment
apps
by
providing
technology
that
allows
powerful
search
capabilities.
The
Automotive
Apps
Store
Must
be
Better
The
AAS
will
be
different
than
smart
phone
focused
app
stores
–
more
robust
apps
and
a
focus
on
ease
of
use.
As
a
recent
CNET
article
indicates
we
should
remember
“the
next
time
your
PC
crashes,
consider
yourself
lucky
that
the
same
flaky
PC
operating
system
is
not
controlling
your
car.”12
For
example,
new
middleware
from
QNX,
called
QNX
car
and
the
GENIVI
Infotainment
referenced
platform
(www.genivi.org/)
based
on
Linux
were
designed
with
these
competing
and
challenging
objectives
in
mind.
Automotive
infotainment
needs
to
sync
with
the
clock
speed
of
the
PC
or
consumer
electronics
world–
the
ability
to
quickly
upgrade
and
experience
new
applications,
but
not
the
“flaky”
part.
The
vehicle’s
instrument
panel
and
infotainment
system
increasingly
have
more
and
more
in
common
with
a
PC
and
our
smart
phone,
the
ability
to
quickly
add
compelling
new
11
www.ahamobile.com
see
www.youtube.com/watch?v=fOcf78Vd2TQ
12
http://news.cnet.com/8301-‐13924_3-‐1045)4331-‐64.html
Information
provided
is
for
internal
use
only
and
not
for
publication.
Autotechinsider
LLC
4
5. The
Auto
Application
Store
is
Coming
!!!
By
Dave
McNamara,
Autotechinsider.com
March
2010
applications,
but
in
a
safe
and
non
distracting
manner.
I
would
suggest
that
the
majority
of
apps
will
reside
on
your
smart
phone,
but
that
there
will
be
several
auto
focused
apps
that
will
reside
solely
on
your
infotainment
system
that
takes
advantage
of
the
car’s
built-‐in
user
interface.
QNX
articulates
this
vision
well.
In
conclusion,
what
is
in
it
for
the
vehicle
manufacturers
to
create
and
maintain
AAS?
We
doubt
it
is
the
revenue
stream
from
selling
applications
alone,
but
rather
a
marketing
business
model
targeted
at
improving
overall
customer
satisfaction.
In
contrast,
the
goals
of
Google
and
Apple
are
clear.
Google
wants
users
to
be
web
based
through
a
browser
connected
to
a
Google
server.
The
more
we
use
the
Web,
the
more
Google's
generates
revenue.
In
a
similar
manner,
Apple
wants
to
get
users
to
be
customers
of
iTunes
and
its
App
Store
that
requires
us
to
purchase
hardware
like
Macs,
iPhone
and
now
the
iPad.
Vehicle
manufactures
will
want
us
to
visit
their
apps
stores
for
reasons
more
similar
to
Apple.
We
will
be
more
likely
to
buy
the
vehicles
that
are
platforms
to
safely
and
quickly
obtain
compelling
new
apps.
Our
Linkedin
survey
provided
us
with
insights
into
the
concerns
and
questions
of
current
and
potential
auto
apps
store
users,
excerpts
modified
to
protect
the
responder’s
identity
are
listed
below:
“I
have
many
free
apps
now
and
used
to
it…I
MAY
pay
for
auto
apps
through
my
smart
phone..”
Note:
several
comments
about
“free
apps
only”
“I
would
like
to
just
walk
into
a
store
and
have
someone
just
show
me
how
these
applications
work…
I
learned
more
from
testing
the
product
“
“New
apps
are
researched
then
I
download
…”.
“The
cost
of
a
smart
phone
data
plan
for
my
family
approaches
a
car
payment”
“GPS
works
well,
but
I
would
like
to
have
elevation,
waypoints,
compass,
trails,
coastal
markers
in
addition
to
street
directions
and
maps”
“..
the
premium
apps
I’m
interested
are
around
LBS,
like
weather…
another
auto
app
is
to
allow
customization
of
my
vehicle
,
such
as
displays
for
easier
use…”
“A
car
will
require
a
different
set
of
apps
that
are
safe
and
easy
to
use”
“
Auto
apps
need
to
be
non-‐distracting,
since
auto
manufacturers
need
to
be
concerned
about
litigation.”
One
important
take
away
is
that
those
who
are
not
participating
in
this
important
new
convergence
of
consumer
electronics
technology
with
automotive
electronics
will
be
left
behind
–
to
participate
means
to
learn
and
guide
the
direction
of
the
business
model.
This
comment
applies
to
the
vehicle
manufacturers,
suppliers
and
consumers
–
join
the
“hand-‐
held
revolution”!!
Information
provided
is
for
internal
use
only
and
not
for
publication.
Autotechinsider
LLC
5
6. The
Auto
Application
Store
is
Coming
!!!
By
Dave
McNamara,
Autotechinsider.com
March
2010
About
Autotechinsider.com
“The
automobile
industry
is
profoundly
affected
by
adjacent
industries
that
produce
the
technologies
that
are
involved,
directly
or
indirectly,
in
the
production
of
a
vehicle.
Since
the
percentage
of
a
given
vehicle's
cost
related
to
elecs,
software,
networking
solutions,
and
related
services
continues
to
grow,
we
are
most
interested
in
these
technology
areas.
Based
own
our
extensive
experience
in
the
automotive
industry,
we
cover
major
events
and
produce
insightful
reports
on
the
technologies,
the
companies,
and
the
trends
that
we
believe
will
have
a
significant
impact
in
the
near
future”.
Disclaimers
All
information
gathering
was
done
in
compliance
with
the
ethical
standards
of
the
Society
of
Competitive
Intelligence
Professionals
and
within
the
provisions
of
the
US
Economic
Espionage
Act
of
1996.
Information
provided
is
for
internal
use
only
and
not
for
publication.
Autotechinsider
LLC
6