Automakers Wary of Handset Fate as Google and Apple Enter Cars - Bloomberg
That’s beginning to change in the eyes of customers like Jeff Carpenter. Toyota and the auto industry face a dilemma: As Google and Apple Inc. begin to move into their business, automakers must decide whether to hold them off and risk losing customers like Carpenter or embrace their technology and open the door to two of the most feared names in technology. Apple and Google aren’t making cars of course, at least not yet. But they’re building technology for in-car navigation, communication and entertainment, and both have openly speculated about moving further into the auto business. The risk is that automakers end up like mobile phone companies -- low-margin hardware makers -- while the Silicon Valley giants cash in. “When companies like Apple and Google get their toes wet in something, there’s always a long-term strategy,”... “There are going to be holdouts because some of these automakers are not yet convinced that Google and Apple will truly be a partner in developing this kind of technology. Maintaining Control Toyota, the world’s largest automaker, is the leading holdout thus far and is partnering with Ford Motor Co. to use technology it’s developed to maintain more control of how its connectivity systems are designed. Source: www.bloomberg.com
