this starts looking like real money
The SD Cars Gold Rush Winner
Jean-Louis Gassée
1.4K13

I think the digital giants, Alphabet (Waymo) and Apple are looking to identify this differentiated module licensed to the automakers for some amount (say $1000 out of the total car price of $30,000) and also be in position to get recurring revenue through services. Even assuming $1 per day of use and 250 days of use, that adds up to a tidy sum for the digital giants). So, we should look at the dual-cash registers that emerge with SD cars. So, Apple’s reported reorientation to only focus on autonomous drive (say some combination of hardware, software and services) as the nerve center of the next-generation car (SD Car) makes sense as it lets the traditional automakers become the integrator (different from manufacturer) of the SD cars but with Apple’s key module at the core. That might look like a break away from integrated view Apple has adopted so far but may be more strategic than trying to take on the full responsibility like Tesla. Interesting space to watch for sure.

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