Google Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL), two tech giants, after conquering their main markets, now aim to take control over cars on the roads. CNBC in an article reported about both companies’ latest moves in the auto market.
Google Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL) are known to battle for the control of the smartphone and tablet markets. They are not only offering devices in the markets, but also software, and it is the software aspect of the business that they can be seen trying to bring to more devices beyond smartphones and tablets and the next battlefield for the two tech companies is the auto industry.
The push to dominate the auto industry appears to be a priority for Google Inc (NASDAQ:GOOGL), as well as Apple Inc. (NASDAQ:AAPL), as the companies come to terms with the fact that saturation in the smartphone business may not offer hope for future revenues. Perhaps for Google, even revenue from ads is under threat as the competition heats up and imposing higher costs for ads becomes difficult. That is why the auto industry where most Americans, for instance, spend a lot of their time, is an area that can offer revenue hopes if properly harnessed.
CNBC cited a market report by Machina Research, which revealed that currently about 10% of the cars coming to the market in the U.S. have inbuilt connectivity features. However, about 90% of the U.S. automobiles are expected to have connectivity capabilities by 2020. Google Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL) are not only partnering with automakers to include their operating systems in the cars, but more than providing software connectivity platform in cars, the two tech companies also have the agenda of venturing into the auto industry with cars that can drive themselves and provide a lot of features to ensure a higher quality of the ride.
Google Inc (NASDAQ:GOOGL) has a self-driving car project, and it is just a matter of time before Apple Inc. (NASDAQ:AAPL) might decide to pursue the same segment.