Carmakers and Apple face a number of serious challenges if they decide to form an alliance to produce an iPod-capable car.
United States of America (Press Release) September 14, 2007 --
Apple and Volkwagen will face a number of serious challenges if they decide to form an alliance to produce an iPod-capable car, and such a vehicle is unlikely to reach the market for three or four years, according to iSuppli.
The analysts note: "While there appears to be strong consumer desire for an iCar, the potential Apple/Volkswagen collaboration faces a set of daunting challenges."
Speculation about the iCar was spurred by a recent meeting between Apple CEO Steve Jobs and Martin Winterkorn, chief executive of the German car manufacturer.
It is not yet known if they discussed an iCar project, or if it was simply a conversation regarding cross-functional leverage opportunities for each company.
A move into cars presents Apple with a chance to extend the iPod ecosystem, while Volkswagen would benefit from strong sales of such a vehicle, iSuppli explains.
The total automotive infotainment market is set to be worth US$50 billion by 2012, the analysts say, pointing out that vehicle production is rising at a steady 3 percent rate. However, the automotive infotainment market will expand faster, at a Compound Annual Growth Rate (CAGR) of 8 percent between 2006 to 2013.
According to the analysts, a difference in the two firm's corporate culture would present the greatest challenge: "Although the old clichi says 'opposites attract,' the cultural divide between Apple and Volkswagen may be too wide to bridge," said Richard Robinson, principal analyst, automotive electronics, for iSuppli.
Author: Jonny Evans
Source: http://www.pcworld.com/
The analysts note: "While there appears to be strong consumer desire for an iCar, the potential Apple/Volkswagen collaboration faces a set of daunting challenges."
Speculation about the iCar was spurred by a recent meeting between Apple CEO Steve Jobs and Martin Winterkorn, chief executive of the German car manufacturer.
It is not yet known if they discussed an iCar project, or if it was simply a conversation regarding cross-functional leverage opportunities for each company.
A move into cars presents Apple with a chance to extend the iPod ecosystem, while Volkswagen would benefit from strong sales of such a vehicle, iSuppli explains.
The total automotive infotainment market is set to be worth US$50 billion by 2012, the analysts say, pointing out that vehicle production is rising at a steady 3 percent rate. However, the automotive infotainment market will expand faster, at a Compound Annual Growth Rate (CAGR) of 8 percent between 2006 to 2013.
According to the analysts, a difference in the two firm's corporate culture would present the greatest challenge: "Although the old clichi says 'opposites attract,' the cultural divide between Apple and Volkswagen may be too wide to bridge," said Richard Robinson, principal analyst, automotive electronics, for iSuppli.
Author: Jonny Evans
Source: http://www.pcworld.com/
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