Tesla to develop an App store to compete with iOS and Android

Tesla to develop an App store to compete with iOS and Android

Tesla may be developing its own app store to allow owners of its electric cars to download and install apps, just like they do on Apple or Android smartphones, according to reports.

Discussions about whether the company was working on an app store surfaced in December after the company unveiled the latest version of its in-car interface, which introduced a customizable icon bar at the bottom of the screen.

The move led some to speculate that Tesla CEO Elon Musk might announce the move during the company's latest earnings conference call in late January, but that speculation ultimately did not come true.

Now, speculation that Tesla may be developing an app store has gained more support, because "insider" Tesla investor Sawyer Merritt retweeted a video of the late Apple CEO Steve Jobs on his Twitter, in which Jobs introduced Apple's app store. In addition to the video, Merritt also added the following text: "Rumor has it that something similar will soon appear on four wheels starting with the letter T."

Teslascope later retweeted the tweet. They said: "The rumor has emerged! Tesla has been developing its own 'app store' since May 2021, and the company will launch the app store before it starts delivering Cybertruck. It was thought that Musk would announce the news during the earnings call, but he only mentioned that this year will be the 'year of software'."

Teslascope then said: "Given that Musk did not mention this in the earnings call, we believe that the company's previously scheduled launch timeline may have been extended, despite the fact that development work has been ongoing since the start of the V11 UI and the launch of the new Model S/X."

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

The so-called "Year of the Software" may come from a statement made by Musk in the fourth quarter 2021 earnings call, when he said that the Full Self-Driving (FSD) software will be the asset with the largest value growth of all asset classes in the company's history."

His statement was also recognized by Tesla CFO Zachary Kirkhorn, who said: "With the rapid development of FSD, software-based profits will eventually become a strong supplement to hardware sales profits. And I think the software part of the business is what we really need to focus on."

If Tesla does launch its own app store, it would add another attractive selling point for its electric vehicles, which have pioneered the concept of "software on wheels" with their range of electric vehicles.

Others believe that by launching an app store, Tesla will be able to create a new source of revenue and increase subscription revenue for its autonomous driving services.

Tesla's move to develop its own app store is not intended to compete with companies such as Volvo and Polestar, which have integrated Android Auto into their electric vehicles, making it possible to download and install specific vehicle apps through the Google Play Store. Tesla may have been planning its own app store long ago, having ruled out integrating Apple CarPlay and Android Auto into its electric vehicles.

Some have pointed out that launching an app store may not bring Tesla much additional revenue, but the purpose of this practice is not just to earn app subscription fees. After all, people don't change cars as frequently as they change mobile phones, and children and teenagers cannot own their own cars.

But compared with mobile phones, the unit profit margin of cars 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 give up the current ecosystem. Once car owners also enter a certain ascended system, they will be more likely to buy the original brand vehicle when they change cars. With increasing brand loyalty, Tesla is likely to continue to increase sales and consolidate its position in the automotive industry.

All this does not take into account the autonomous driving function. After the autonomous driving function is truly realized, the brand loyalty of Tesla consumers will be further enhanced.

Which brings us to another question: When will the Apple Car arrive?

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