A couple weeks ago, we posted an article, which you can find here, that touched on Apple Inc. (NASDAQ:AAPL) and the possibility of the company getting more involved in the auto industry in the near future.
When it comes to the connected car industry, there is no denying the fact that Apple is in position to take the lead. Whether or not this happens sooner rather than later is yet to be seen, but the Cupertino based company is definitely doing its part in changing the automotive industry.
ABI Research is once again publishing quality information related to this topic: $1.67 Billion in Revenue from Automotive App Downloads by 2018
Take a closer look at the title and you will see that things are about to get very interesting in the near future.
Not only is revenue from automotive app downloads expected to top $1 billion, but ABI Research feels that this is going to happen within the next five years. Can you imagine this happening so soon?
The report goes on to add the following:
“ABI Research forecasts that the number of automotive apps downloaded in cars will jump from around 12 million at end of 2012 to 4.3 billion at end of 2018 generating revenues of $1.67 globally.
Although connected cars have been on the market for several years, pioneered by platforms such as GM’s OnStar and Ford’s SYNC, their growth has been relatively modest and car companies have struggled to generate revenues from monthly subscriptions.”
At this point, you may be wondering where Apple Inc. (NASDAQ:AAPL) fits into the equation.
This is something principal analyst at ABI Research Gareth Owen has discussed:
“Car OEMs now increasingly see infotainment as a key differentiator in their cars. We predict a sharp growth in the adoption of connected car infotainment systems over the next few years, with apps being the main driver, as for the iPhone.”
It only makes sense that Apple Inc. (NASDAQ:AAPL) would dive into this industry head first. Cupertino is already the leader in the smartphone app market, so it only makes sense for the company to do the same in the auto industry.
But remember, Apple is not going to be alone. Other companies will be looking to make headway, not to mention the fact that auto manufacturers will be cautious with how much control they hand over.