What Happens to Apple If Amazon Takes Over the Car Dashboard?

What Happens to Apple If Amazon Takes Over the Car Dashboard?.

Unlikely Events Could Shape the Future of e-Commerce Companies PART 2 OF 10

Riding on others' coattails

Amazon (AMZN[1]) appears to be making steady gains in home and vehicle automation in ways that could hurt Apple (AAPL[2]). Alphabet's (GOOGL[3]) Google and Apple have long vied for control of the connected vehicle market[4], but Amazon's strategy is combining car and home, riding on others' coattails.

Connected vehicles belong to the IoT (Internet of Things) economy, which is projected to grow to $1.7 trillion by 2020, according to IDC (International Data Corporation). The graph below shows the global IoT market size.

What Happens to Apple If Amazon Takes Over the Car Dashboard?

ZeroTouch brings Alexa into the automobile

In a recent development, Logitech International (LOGI[5]) unveiled a car dock called ZeroTouch that enables drivers to instantly add Alexa controls to their vehicles. With ZeroTouch, drivers can control music and text, receive calls and reminders, browse product reviews, and turn on lights in their homes by issuing voice commands the same way they do with Amazon Echo.

However, Apple doesn't support ZeroTouch, which limits ZeroTouch to Android systems. The lack of support for ZeroTouch could hurt Apple's home automation push if drivers prefer the same automation experience in their cars as they have at home.

ZeroTouch will help Amazon bring Alexa everywhere people might want to use it. Although Apple already has in-car automation support through CarPlay and Siri, the company is lacking in the home automation space.

Apple's tepid third-party support

Amazon is encouraging third-party developers to integrate Alexa into their products so they can be operated through its Echo smart speaker. But Apple only has access to Siri and its HomeKit platform. Amazon's open-systems approach has brought more skills to Alexa, making the Echo a popular home automation hub.

If developers see Amazon as friendly to their automation dreams, they could help the company penetrate native connected vehicle systems of automakers such as Ford (F) and General Motors (GM). That would be at the expense of Apple.

References

  1. ^ AMZN (marketrealist.com)
  2. ^ AAPL (marketrealist.com)
  3. ^ GOOGL (marketrealist.com)
  4. ^ connected vehicle market (marketrealist.com)
  5. ^ LOGI (marketrealist.com)

Source