Will Android Take Over In-Vehicle Infotainment?

For Nathan Tennies from Barr Group, the answer seems to be a resounding “yes”:

It’s frankly hard to see how automakers using AGL—or other infotainment platforms—will be able to keep up with Google. […] And for some automakers, putting the kibosh on Google may ultimately be more important than providing customers with the best IVI experience […] But mobile giant Samsung provides a cautionary tale about the difficulties of competing with Android.

Samsung and the other Android handset makers provide a cautionary tale why using Android is a bad idea. The premium handset market is heavily dominated by Apple’s iOS. Customers are willing to pay prices of 700 Euros and more for an iPhone, because iOS is the big differentiator from Android.

Why should customers pay 700 Euros for Android phones, if 300 Euro Android phones are good enough for them! Android OEMs can only differentiate on price. And their average selling prices have been declining for years.

Car OEMs would be stupid to bet on Android. They would give away an easy and compelling way for differentiation. I can’t see this happening for premium car makers like Daimler, BMW, Porsche and Tesla. They are currently investing heavily in operating systems other than Android.