Apple CarPlay – Puts Apple In The Dashboard But Challenges Galore!!

The world’s second largest smartphone player Apple today forayed into the automotive sector in a much bigger way by announcing its latest offering “CarPlay” at the 2014 Geneva Auto Show. Apple’s CarPlay is s first major step by Apple to expand its business model by monetizing its software & services instead of hardware.

With CarPlay, Apple looks forward to bring iOS based platform which has been designed ground-up to revolutionize the in-vehicle dashboard.  The entire ‘Applesque experience’ in the car is centered around its popular cloud-based voice-assistant Siri, Apple maps and Apple iTunes encompassing the major forms of content being used in the car. Apple has announced multiple marquee partners at the launch and more to follow which will be rolling out CarPlay in select models and select markets globally:

Apple CarPlay

This opens up a whole new opportunity for the Cupertino vendor, entering a new vertical with new offering. CarPlay will be the halo service to catalyze the sales of iOS devices for the car owners with CarPlay in-dash. While this is a step in the right direction but we caution the challenges for Apple are plenty in this new space stopping it from becoming the “the gold standard”  in the automotive industry.

1. Apple Maps: The quality of the Apple maps is highly questionable even in US plus a sub-par user-experience and limited POI database. Apple needs to license quality maps from providers such as Nokia’s HERE since it has already un-friended Google.

2. Apple Siri: The Siri performance will be strongly challenged on the road especially and will need a highly reliable network connection in future for use-cases beyond in-vehicle push-and-hold types.

3. Niche Target: Apple is trying to revolutionize Apple iOS devices (iPhone or iPad) experience in the car with CarPlay but leaves out millions of non-iPhone car owners in the dark.

4. Limited third Party Ecosystem:  iTunes alone won’t be to catalyze the in-vehicle media usage and Apple will need to eventually expand / partner with the third party apps and services (e.g. Pandora, Spotify, NetFlix, Games etc.) to bring more content and stickiness to the dashboard.

5. Business Model: Apple has been making significant profit margins by selling premium hardware & locking-in the users with its software and services. This time its the other way round and will be interesting to see how Apple monetizes its platform and services to gain comparable margins or if  CarPlay will remain just a minimal break-even product enabling multi-screen play to drive further iPhone or iPad sales.

For more info, press enquiries or further questions please contact

analyst [@] counterpointresearch [.] com

Neil is a sought-after frequently-quoted Industry Analyst with a wide spectrum of rich multifunctional experience. He is a knowledgeable, adept, and accomplished strategist. In the last 18 years he has offered expert strategic advice that has been highly regarded across different industries especially in telecom. Prior to Counterpoint, Neil worked at Strategy Analytics as a Senior Analyst (Telecom). Neil also had an opportunity to work with Philips Electronics in multiple roles. He is also an IEEE Certified Wireless Professional with a Master of Science (Telecommunications & Business) from the University of Maryland, College Park, USA.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited


In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.