Automotive Electronics: a follow-up

In the last post, I posited that Microsoft’s SYNC will be the technology that brings the most differentiation to automobile electronics and that SYNC will finally unify the electronic interfaces in our vehicles.  I’d like to follow that article up with a few comments.

In the current market, navigation systems (in general) are a point of differentiation between “smart cars” and “regular cars.”  SYNC will provide this kind of differentiation, and more.  Not only will people look for cars with navigation systems in the future, but SYNC will become the technology brand name car buyers will seek out.  Just as features like airbags and all-wheel drive today are on the shopping lists of people who have a need for such features, SYNC will be on the same list of tech-conscious car shoppers.  Some shoppers might even go so far as to purchase a car they like less overall, but with SYNC, than buy a car that’s more visually appealing and attractive, but lacking SYNC.

This can be seen today by the increased demand for Ford’s products that have SYNC as an option: namely the Ford, Lincoln, and Mercury brands.  For example, customers might purchase the Ford Fusion sedan over the Honda Accord sedan just because the Ford has an option to be equipped with SYNC.  However, the Accord might be a better car overall – as can be seen in many reviews (mainly because it’s newer).  The trend here is that technology draws people to cars, and this trend is only going to accelerate as our tech becomes a bigger part of our mobile lifestyles.

Today, it’s in my and the consumers’ best interests that Microsoft license SYNC to manufacturers other than Ford and, conversely, that other manufacturers see the benefit in SYNC and decide to integrate it into their products.  (I say this is interesting for me because there is currently no Ford product that is desirable to me, even with SYNC.  That says something about Ford’s line-up more than it does about SYNC.  I’d go for a VW GTI with SYNC in a heartbeat, for example).  However, if Microsoft takes the Apple iPhone licensing route and decides to collect higher margins on Ford exclusivity, other competitors might enter the market.  I don’t see Microsoft doing this, however, since I see the company most concerned with market share and market penetration – especially in the automobile market – a segment they have been wanting to be in for a long time.

Posted in Automotive, Business, Decisions, Microsoft, Software, iPhone