Shulou(Shulou.com)11/24 Report--

CTOnews.com, November 3, Canalys released the latest report that technology companies (Google, Alibaba, Baidu) and smartphone manufacturers (Apple, Xiaomi, Huawei, etc.) are actively planning and deploying to ensure a foothold in the future smart car market. The aim of technology manufacturers is not only to grasp users'in-car behavior and vehicle data, but also to position themselves as first-tier suppliers (such as Huawei and Baidu) or directly announce car-building (such as Xiaomi). Car companies are acutely aware that if they do not act quickly, their market share will be taken away.

Smartphones are becoming the core of consumers' digital lives, and some Chinese car companies are exploring opportunities to make smartphones. Li Bin, CEO of Xilai, said the company plans to make smartphones for its users and plans to update them every year, which makes it have a big impact. Geely also acquired a majority stake in Meizu, a smartphone maker, through Star Times, one of its subsidiaries. Although Geely acquired Meizu mainly because of the need to build a better digital cockpit and ecosystem, Geely and its brands are expected to use Meizu and its related businesses to seek more opportunities in smartphones and telecommunications.

Car companies regain more control over the digital user experience-connected cars have long been seen as an extension of smartphones, as evidenced by the popularity of smartphone mirroring systems such as Apple's Carplay, Android Auto and Baidu CarLife. However, the digital cockpit means that the car environment is becoming the "third space" of the new mobile era. CTOnews.com has learned that Chinese car companies are now trying to use smartphones as an extension of the smart car ecosystem to help achieve eco-led functions and smart driving life-related usage scenarios. However, due to inconsistent goals, there is a certain risk of handing over the development of smartphones and the development of core platform functions to third-party developers. Developers and platform service providers often pursue growth blindly while ignoring the user experience and the expected results initially set by car companies.

Now is a good time for capable car companies to enter the smartphone market, not because of demand, but because of a slowdown in smartphone innovation. In addition to advances in foldable displays and mobile photography, smartphone makers are investing in areas beyond their core competencies to develop their extended ecosystem by introducing more devices and artificial intelligence services. Chinese car companies are expected to take the lead in launching unique innovations that come from the seamless integration of smartphones and cars beyond in-car entertainment and navigation. The use cases of smart user scenarios that help improve safety, driving safety, charging efficiency, and the overall car experience are of great significance to help usher in a new mobile era.

Car companies need to ensure that their sustainable car companies plan to enter the high end of the market with their first smartphone to attract customers who are willing to try new things but have high expectations and high income. Not only do car companies lack brand influence in the smartphone market, but their target audience is also limited to their existing users and potential buyers.

Car companies must be prepared to invest in the long term and strive to become a substitute for the industry to attract users away from existing smartphone brands. They need to launch smartphones that are closely linked to car brands and have unique selling points in order to compete with existing smartphone brands. Before winning high praise from consumers, car companies need to at least ensure that software and features are as mature as those of Apple, Huawei, Xiaomi and other companies. The shorter product life cycle of smartphones and the faster pace of the industry are a challenge for car companies, but provide them with good experience in understanding how the consumer electronics industry works.

For new-power carmakers with poor profitability, maintaining long-term investment in smartphone production is challenging because the business is less likely to deliver good returns quickly. In a highly competitive market, manufacturers that launch devices that are lower than consumers' expectations will be eliminated.

If car companies fail to give priority to smartphones in their strategy and do not realize that the future smart driving experience will be highly dependent on smartphones, they are likely to give up after two or three iterations.

There are plenty of options for car companies to choose from, although technology companies are looking for opportunities in the smart car market to use it as a potential revenue and growth driver, but it is much harder for car companies to achieve the same goal on smartphones. From the perspective of car companies, smartphones are best positioned as an ecosystem, with the initial stage focusing on the exploration of functions and business models. Once the mobile phone product line becomes the key to the user experience, car companies can consider making a profit from the sales of hardware, software and services.

If it is a challenge to encourage users to replace their commonly used phones, car companies can win users from the perspective of spare phones, as many consumers will carry multiple phones for specific use scenarios. For example, smartphones can be bundled with technology option kit upgrades. Manufacturers must clearly inform users of the features they get when they use their smartphones in the car and the accompanying services (subsidies or extra charges) to avoid unwitting surprises. The key is for curious users to start building habits through the unique features of the car company's portfolio of devices and services. Although most manufacturers aim to pursue high standards of equipment and services, it is more important for car companies to have the first smartphone to meet consumer expectations.

Smartwatches are also a viable option for less ambitious Chinese car companies. Although smartwatches are becoming more and more popular, only a small number of Chinese smartphone users use wearable devices. When a smartwatch is paired with a vehicle, many intelligent functions can be achieved, from smart car keys to remote startup, temperature control, and so on. These new features will attract users looking for new experiences. However, car companies must ensure strong health and motion tracking, preferably with mature players in the field of wearables. After all, health and motion tracking are the key reasons why most people use smartwatches all the time.

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