With Apple’s software-based services offering up 70% of its profit margins, the question is whether this over-the-air (OTA) business model will ever work in cars.
In comparison car manufacturers often only gain only 10%. For this reason, automakers are turning to ‘software-defined’ vehicles to boost their profits in the hope that the OTA will be a lucrative subscriptions goldmine. In an Autocar article asking the question: “Stellantis is the latest carmaker to spell out exactly how much money it thinks it can make from so-called ‘software-defined’ vehicles at an event dubbed Software Day in December. It predicted revenues of €20Bn ($22bn) by 2030, at which time it reckons it’ll have 34 million data-connected vehicles (essentially, 34 million smartphones on wheels), up from around 12 million now.”
Make sense of the OTA business model, read the complete article on Wards Auto.
Client: InformaTech, originally published by TU Automotive 4th March 2022.


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