Ford bets on your smartphone instead
Reports have suggested that Ford Motor Company (NYSE:F) thinks consumers will object to paying for more than one data plan. Why not get the data via folks’ smartphones, the argument goes, since they’re already paying for that connection?
There’s some merit to that argument. But at the same time, it’s worth noting that there’s a precedent for people paying to upgrade their in-car entertainment options. Your humble Fool is one of millions who pay well over $100 a year to hear Sirius XM Radio Inc (NASDAQ:SIRI)‘s satellite radio service in their cars.
If people are willing to pay that much for what is essentially a bunch of radio channels, is it reasonable to guess that they’d be willing to pay, say, $200 a year for a service that brought them in-car TV or movies or games? (Or maybe more to the point, a service that brought these features to the kids in the back seats?) Along with real-time traffic and navigation updates?
It’s a big question. At least right now, I can’t blame Ford Motor Company (NYSE:F) for taking a more conservative approach. But I have a feeling that GM’s plan is going to work out pretty well – and unless the Blue Oval has another plan up its sleeve, that could leave Ford scrambling to catch up.
The article Ford Could Lose This High-Tech Battle originally appeared on Fool.com.
Motley Fool contributor John Rosevear owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.
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