Competing with iOS and Android? Sources say Tesla will develop an app store

Tesla launched its own app store, most likely to build its own "ecosystem."

Sina Technology News At noon Beijing time on February 7, tesla may reportedly be developing its own app store, allowing its electric car owners to download and install apps here, just like Apple or Android smartphones.

Last December, Tesla released the latest version of Tesla's in-vehicle interface, and discussions about whether the company is developing an app store have surfaced. At that time Tesla introduced a customizable icon bar at the bottom of the screen.

The move led some to speculate that Tesla CEO Elon Musk might unveil the move at his latest earnings conference in late January, but that speculation never came true.

Today, speculation that Tesla may be developing an app store is more supported by "insider" Tesla investor Sawyer Merritt retweeted a video of late Apple CEO Steve Jobs on twitter in which Jobs introduced Apple's app store. In addition to the video, Milt was accompanied by the following text: "Rumor has it that something similar will soon appear on something with four wheels that begins with a T. ”

Subsequently, Teslascope retweeted the tweet. They said, "Rumors have come!" Tesla has been developing its own 'app store' since May 2021, and the company will launch it before it starts delivering Cybertruck. Musk was expected to announce the news on the earnings call, but he only mentioned that this year will be the "year of software". ”

Teslascope then added: "Given that Musk didn't mention this on the earnings call, we believe that although development work has been ongoing since the V11 UI and the release of the new Model S/X began, the company's previously set launch time may have been extended." ”

However, it must be pointed out that from all the information available now, Musk does not explicitly say that this year will be the "year of software". He simply said: "Whether in terms of cars or factories, Tesla is more like a software company than a hardware company." But the outside world is not fully aware of this. ”

The so-called "year of software" may have come from a quote Musk said on the fourth quarter of 2021 earnings call, when he said that fully autonomous driving (FSD) software will be the largest increase in value of all asset classes in the company's history.

His claim was echoed by Tesla CFO Zachary Kirkhorn, who said: "With the rapid development of FSD, software-based profits will eventually become a powerful complement to the profits from hardware sales." And I think the software part of the business is what we really need to focus on. ”

If Tesla does release its own app store, the company will add another attractive selling point to its electric car. With a series of electric vehicles, Tesla pioneered the concept of "software on wheels.".

Others believe that by releasing an app store, Tesla will also be able to create a new revenue stream and increase subscription revenue for autonomous driving services.

Tesla's own approach to developing app stores is not meant to compete with companies like Volvo and Polestar, which have integrated Android car systems into their electric cars, making it possible to download and install specific vehicle apps through the Google App Store. Tesla ruled out the integration of Apple's CarPlay and Android cars into its electric cars a long time ago, and Tesla may have been planning its own app store long ago.

It has been pointed out that publishing an app store may not bring tesla much extra revenue, but the purpose of this practice is not just to earn app subscription fees. After all, people don't change cars as often as they do with their phones, and children and teens can't own their own cars.

But compared to mobile phones, the unit profit margin of the car is obviously much higher. Tesla launched its own app store, most likely to build its own "ecosystem." Every year when people change their phones, many people choose to stay in the iPhone or Android camp because they are reluctant to the current ecosystem. Once the owner also enters a certain ascension system, they are more likely to buy the original brand vehicle when changing cars. With increasing brand loyalty, Tesla has the potential to ramp up sales and consolidate its position in the automotive industry.

And all this, has not yet considered the automatic driving function. After the real realization of autonomous driving, Tesla consumers' brand loyalty will be further improved.

And that brings us to another question: When will apple cars arrive?

This article is from "Sina Technology"