As Apple CarPlay Rollout Nears, Details Emerge

This morning, Apple (NASDAQ: AAPL  ) announced the rollout of its long-awaited iOS in the Car, rebranded as CarPlay. Along with the announcement are some new details. Volvo even released a video of Apple's iOS-based CarPlay in its own press release this morning.

CarPlay. Image source: Volvo's official announcement of future integration with CarPlay.

New details on Apple's CarPlay
First and foremost, investors have received some confirmation that there are many manufacturers ready to integrate CarPlay in their vehicles. "Vehicles from Ferrari, Mercedes-Benz, and Volvo will premiere CarPlay to their drivers this week," Apple said in a press release today. "[A]dditional auto manufacturers bringing CarPlay to their drivers down the road and include BMW Group, Ford, General Motors, Honda Motor Company, Jaguar, Land Rover, Kia Motors, Mitsubishi Motors, Nissan Motor Company, PSA Peugeot Citroen, Subaru, Suzuki and Toyota Motor Corp."

CarPlay piggybacks off an iPhone via a Lightning connector and will be available as an iOS 7 update for the iPhone 5s, iPhone 5c, and iPhone 5. But Volvo's own press release this morning says that CarPlay Wi-Fi connectivity will be "coming in the near future." Volvo's video demo is the first official look at CarPlay in action.

What does Apple's move into vehicles mean for investors?
At the 2014 International Consumer Electronics show in Las Vegas, Apple was notably absent. Though Apple had already announced its iOS in the car at that point, the tech giant's absence meant investors were left with scant details. But with the veil finally removed, investors can now begin to think about how CarPlay could strategically play out for the company over the long haul.

The big question will be whether Apple's CarPlay will be able to compete effectively with Google's Open Automobile Alliance announced at 2014 CES. The alliance consists of a new and open Android platform to be used in cars. But Google is taking a very different approach with an aim to eventually power the car itself with Android as opposed to Apple's strategy to piggyback CarPlay on Apple devices.

By requiring Apple devices to power CarPlay, could Apple lose out to Google's approach to powering the car itself? The Motley Fool's technology bureau chief, Evan Niu, has expressed concern regarding Apple's refusal to give up its integrated approach as it takes iOS to the car:

I don't necessarily believe that Apple will lose the upcoming skirmish -- I just can't figure out how it can win. Maybe Apple needs to change gears every once in a while.

So early in the game, there's no reason to get excited or disappointed about Apple's CarPlay. But as the inevitable melding of software and vehicles continues, Apple investors should begin to keep an eye on this new space.

Three stock ideas to buy and hold for the long haul
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal "The Motley Fool's 3 Stocks to Own Forever." These picks are free today! Just click here now to uncover the three companies we love. 

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2862075, ~/Articles/ArticleHandler.aspx, 8/28/2015 11:14:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Daniel Sparks

Daniel is a senior technology specialist at The Motley Fool. To get the inside scoop on his coverage of technology companies, follow him on Twitter.

Today's Market

updated 1 hour ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
AAPL $113.29 Up +0.37 +0.33%
Apple CAPS Rating: ****