“Will your next car be a smartphone?” is the title of an article written by CNN’s Doug Gross and published today on CNN’s Web site. Gross writes: “Forget about using your smartphone in the car. Your next car might be one. A growing number of auto and electronics product vendors creating systems that put touchscreens, and the ability to talk and text, right into the dashboard.”
Putting apps-driven technology into automobiles is part of a growing trend that transforms everyday objects like automobiles, phones, cameras, and even books and magazines into applications. The electronics industry is at the heart of this transformation and is absolutely essential to the success of these ventures.
And why do it? For money, revenue, and profit—that’s why. The old product-sales model said: You sell someone something like a car or a phone, and then you get no more revenue from them until they replace that product. The apps-driven revenue model says you get money when someone buys the product and you get a continuous revenue stream from the sale of apps for that product.
This idea of continuous revenue stream has been honed to a fine point by Apple with its iPod, iPhone, and iPad. The positive impact on Apple’s bottom line hasn’t been missed by others in the business of creating consumer products. All of the smart vendors are racing to turn their products into apps platforms wherever possible, because of the obvious economic benefit.
Apps-driven design is one of the key elements of the EDA360 vision.