Apps, the little software programs that make our phones so indispensible, are quickly becoming part of our cars, too.
BMW AG is working on setting up an app store, modeled on Apple Inc. 's iTunes, to deliver automotive apps to its owners. The store is expected to launch in Europe later this year and in the U.S. in 2015.
For the car makers, electronics and communications capabilities are becoming key selling features, and for many buyers, especially the coveted younger consumers and first-time car buyers, they're more important than horsepower or handling.
"This is a big transition in the industry in the digital context" said Mathias Haller, chief architect of infotainment systems at Audi. Car makers can't afford to fall behind or take a wrong turn on dashboard technology. Ford Motor was an early leader with its Sync system, but later, more complex versions have proved buggy and frustrating to customers, and have hurt the company's standing in quality surveys.
Call it Carapps 2.0. For the past few years, new cars have had the technology—USB ports, microphones, Bluetooth—enabling drivers to make hands-free phone calls. And in some models it is possible to listen to podcasts or stream music from a smartphone. But the first generation of these interfaces were often clunky, distracting and potentially dangerous. Frustrated by confusing voice commands, drivers were forced to pick up their phones—and hope their thumb taps the right icon or swipes the screen the right way to select a song, look up an address, or enter a destination.That won't be the case soon.
Last month at the New York International Auto Show, Mercedes-Benz demonstrated a car equipped with an early version of an infotainment system that uses Apple's iOS extension for automobiles, CarPlay. It has the same look and feel as an iPhone—the icons that appear on the car's display are the same as the iPhone's icons. "If the driver has less to learn, then it makes it more safe," said Kal Mos, Mercedes's director of connected infotainment. Mr. Mos said the system could start appearing in Mercedes vehicles by year end.
The mobile technology providers and car makers remain wary of each other, but they also have a lot to gain if they can win over more consumers.
"It is an absolute arms race to put [smartphone technology] into every car," said Kanwalinder Singh, vice president of business development at Qualcomm Inc., whose computer chips are key components of smartphones and increasingly are turning up in automobiles. About 100 million cars sold each year world-wide, and right now only about 10% have some kind of built-in communications system, he says.
Updated May 14, 2014 6:14 p.m. ET
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