) and Audi are expected to forge a partnership during the
upcoming Consumer Electronics Show at Las Vegas. The partnership
aims at implementing in-car mobile technology in Audi vehicles.
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The in-car entertainment system will be controlled by Google's
Android operating system. Audi users will now be provided with
all the facilities that are usually available in smartphones and
that too while traveling.
The idea of accessing all the features available in a smartphone
while driving seems innovative and interesting but it has its
demerits too. It may prove to be a source of distraction for the
drivers, thus leading to accidents.
This is not the first time that both the companies have come
together. They already have an existing deal as per which all the
data services and maps for Audi's Multi Media Interface are being
provided by Google.
The partnership will also benefit
), as it will supply the processors needed to run the mobile
This move is believed to be an attempt on Google's part to
) "iOS in the Car" technology, which enables the pairing of the
iPhone with vehicle dashboards.
The inclusion of Google's technology into popular high-end
vehicle models could improve brand awareness and solidify
Google's position in the in-car technology market.
Google generates revenues primarily from the sale of advertising
space on its online properties. It has therefore focused on
protecting and growing its position in the search market through
continued innovation, quality improvements and expansion into
We however anticipate that going forward Google will be burdened
with margin pressure as a result of increasing competition from
the likes of
) and a growing hardware business.
But Google has shown superb execution to date, which has kept the
shares buoyant. As a result, its share price has appreciated
27.9% over the past year.
Currently, Google has a Zacks Rank # 2 (Buy).