Will Apple Inc. (NASDAQ:AAPL) Be Entering Into the Telematics Industry For Real?


The SIM introduced by Apple Inc. (NASDAQ:AAPL) may not be that successful in the tablet market, but the company can surely start its operations in the telematics market.

The global sim introduced by Apple Inc. (NASDAQ:AAPL) has not gained much popularity in the wireless industry, but the market experts are not ready to write off Apple sim as of yet. According to these market analysts, in this age when internet of things is on a rise, the company can surely use this thing in other applications and processes.

Since the SIM is programmed globally, it can offer features that can be used in way more important gadgets.  It’s been quite a while since Vodafone Group Plc (ADR) (NASDAQ:VOD) and AT&T Inc. (NYSE:T) used their global SIMS to connect the cars. The analyst at Light Reading, Dan Jones, said that the next logical for Apple Inc. (NASDAQ:AAPL) is to eneter into the telematics industry with its SIM card and Apple iPhone.

According to Dan Jones, it is very costly for an automobile maker to invest in the global SIM in order to come up with a connected car. It would be easier for an automobile maker to just contact Apple and benefit from its global SIM. By installing global SIM into the car, the car manufacturer can give its customers a choice to choose their preferred network from a whole array of choices. If we think about it, the idea is quite feasible. The automobile manufacturer will not have to set up environment for a specific carrier, and thus the car owner will have a broader range of choices.

The installation of global SIMS into the automobiles makes sense, for the lifetime of cars is much greater than that of the gadgets.

Coming to Apple Inc. (NASDAQ:AAPL), the company commented that it would want to extend its operations into the telematics industry. Apple said that it has sealed a deal with General Motors Company (NYSE:GM) whereby it will offer its iOS services and apps to the car maker in order to design a connected car.

Where the SIM did not get much appreciation in the wireless industry, chances are that it may receive a warm welcome in the telematics industry.

According to the results of recent surveys, the customers these days prefer to buy a car that has in-car connectivity.  A survey conducted by Ericsson and AT&T showed that around 72 percent of the customers would be willing to wait for their cars, if the cars have the features of in-car connectivity. Moreover, 50 percent of the customers said that they would be willing to transfer to those car manufacturers that offer connectivity service in their preferred car.

The market size of the connected cars is on a rise. Estimates are that the total market size will reach $20 billion by the end of the year 2018. In the year 2013, this market saw total revenues of $8 billion. Let’s wait and see how much progress 2014 brought in this particular industry.

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