Analyst commentary on issues, trends, and developments in the automotive telematics, navigation, and infotainment markets.

Some of you may enjoy the sport of Apple rumor-mongering, an activity which must give Steve Jobs much pleasure.  His PR department can simply deny things, and they’ll bloom and spread on their own.  Five (plus) years of such denials is what led to the iPhone hysteria, culminating last Friday in an amazingly successful launch. That topic is worthy of a separate blog.  But for now the topic is cars.

German magazine FOCUS started the rumor in mid-June.  It rippled across the blogosphere, tickling the fancy of many car and computer enthusiasts.  The story goes something like this:  Apple is developing a navigation system for Mercedes, potentially using Google Maps.  The project may even feature an iPhone-like touch-screen interface and include the sound system.  It would launch in 2009 and Mercedes would have a 6-month exclusive, after which other OEMs could use the technology.  Apparently His-Steveness has a penchant for Mercedes automobiles, lending credence to the rumor. 

(Since Steve Jobs' choice of automobiles is now in play, I wonder what Fake Steve Jobs drives?  If you enjoy Apple-watching, or the Cult-of-Steve, FSJ is especially entertaining:  http://fakesteve.blogspot.com/.  Full disclosure statement:  I make fun of Steve and Apple with all good intentions – The man has always been a visionary, and I’ve personally used Macs since the days of the Lisa. Many businesses and business leaders could learn a lot from Apple and Steve Jobs. The value of an unrelenting focus on customer-centric design, first and foremost.)

OK, so the Mercedes Apple Infotainment System rumor is out there.  Would it be nice?  Yes.  Is it likely to happen?  No. 

Think about this with a clear head for a moment. Do the automakers desperately want a bit of Apple’s flair and customer fanaticism?  Absolutely.  Do the automakers, especially the Germans, desperately need a dose of Apple’s interface design skills and customer-centric usability?  Double Absolutely.  But does Apple need the automakers, or have anything to gain from devoting precious resources to them?  Not in the least.  The usual Apple modus operandi is very tight control over all elements of product and pricing, strong Apple branding, total design freedom, and solid profits.  Would a Mercedes infotainment system deliver any of those key factors? 

Secondly, for Mercedes or any other OEM, 2009 navigation and infotainment systems are already designed, sourced, and purchased. They’re done. Only an accessory or add-on option (like the Ford/Microsoft SYNC) could be possibly be done in that time frame, even for late 2009 as a model year 2010.  Apple has no experience in automotive spec hardware or software, and is unlikely (after the Motorola ROKR flop) to welcome partnering with anyone.

I’d bet there is work going on between Apple and Mercedes, but it’s a simple thing blown out of proportion.  Apple is working to expand their connectivity to cars.  They may even be developing an add-on box that provides navi and multi-media device connectivity (like the Ford SYNC). The iLink? The iNav? Regardless of what iName it is given, that is the likely outcome, not an Apple Infotainment System.

Mr. Jobs has said Apple wants to have a four-legged chair - Mac, iPod, iPhone, and AppleTV.  Automotive is not on the list – except that all those things can be part of a car’s infotainment system.  Apple will probably leave that to others, or perhaps work to help create the integration. But they will only brand things they control 100%.

I welcome your comments, especially from my friends and former automotive colleagues now working at Apple… I promise to hire you if you get fired for blabbing… 

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