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Apple Car Play has been a cost option for BMW buyers for a while now. That cost amounts to a one time fee of around $300 in your local currency. BMW has spied an opportunity which will allow it to make much more money out of the deal and, in effect, turn Apple Car Play into its own cash monkey.
BMW's argument - and one that should resonate with new car buyers - is that by switching to an $80 subscription they are actually reducing the cost to car buyers, who tend to replace their vehicle every three years anyway and will be up $60 on the deal as a result.
What the change allows BMW to do now is to continue charging that fee for the life of the vehicle. So the second and third owners will also pay the $80 fee and even some fourth owners. It's likely to keep that subscription fee rolling into BMW's coffers for at least the first ten years of the car's life, meaning that BMW pockets $800 instead of just $300.
What Apple makes of this news hasn't been revealed. Apple charges a one-time fee for the Car Play connection software and the heavy lifting is done by your iPhone. So BMW appear to be gouging iPhone owners, something Apple isn't generally keen on other companies doing.
I think BMW is also putting itself in an awkward position if Apple creates an update to Car Play which breaks compatibility. It is going to have to ensure that it can continue providing the service it's providing to its customers whatever changes Apple makes. Not something owners who paid a one-tine fee for the service will be expecting.
BMW's argument - and one that should resonate with new car buyers - is that by switching to an $80 subscription they are actually reducing the cost to car buyers, who tend to replace their vehicle every three years anyway and will be up $60 on the deal as a result.
What the change allows BMW to do now is to continue charging that fee for the life of the vehicle. So the second and third owners will also pay the $80 fee and even some fourth owners. It's likely to keep that subscription fee rolling into BMW's coffers for at least the first ten years of the car's life, meaning that BMW pockets $800 instead of just $300.
What Apple makes of this news hasn't been revealed. Apple charges a one-time fee for the Car Play connection software and the heavy lifting is done by your iPhone. So BMW appear to be gouging iPhone owners, something Apple isn't generally keen on other companies doing.
I think BMW is also putting itself in an awkward position if Apple creates an update to Car Play which breaks compatibility. It is going to have to ensure that it can continue providing the service it's providing to its customers whatever changes Apple makes. Not something owners who paid a one-tine fee for the service will be expecting.
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