As a long time BlackBerry (BB) endure, I’m capable of infrequently concentrate on I’m asserting this, but QNX+Amazon’s (AMZN) Alexa might presumably per chance also vastly substitute the infotainment panorama.
On a vary of times, I if fact be told maintain argued that Android P with its Play Retailer used to be going to displace QNX as the gold approved in infotainment. Heck, I even urged that BlackBerry roll its possess Android infotainment based entirely on it is gain Android to gain in on the apps revolution.
A bit background:
QNX at the present time is in something cherish a hundred and twenty million vehicles and most continuously powers the infotainment method. QNX is accounted for in BlackBerry Technology Choices (“BTS”) division.
BlackBerry continues to gain traction in its core corporations – Mission Software program, BlackBerry Technology Choices (“BTS”), and Licensing and IP. … It represents over 25% of BlackBerry’s core earnings. This product is primarily pushed by BlackBerry QNX. (emphasis added.)
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In most cases, your infotainment method is a laptop with an running method (QNX), apps cherish Pandora, and peripherals (DVD, design exhibit, and heaps others.) The subject is that there if fact be told are no longer many apps for QNX-based entirely in-flee infotainment. Oh determined, GM will encompass some homebrew apps, Ford will produce the equivalent. They will then toss in just among the dozen or so 1/three-celebration apps cherish Pandora, and call it a day.
But in at the present time’s app-centric world, QNX falls short. And this is where Android (GOOG) shines:
Drag around the pill long satisfactory and it is likely you’ll presumably per chance also be in a situation to search out a Play Retailer icon that ushers you into Google’s in-automobile marketplace. Or no longer it is definitely no longer the Play Retailer you’re most definitely unheard of to, though: Google informed us there are “thousands of apps” which maintain been pre-authorized for utilize on in-automobile Android programs, though a vary of those I got to perceive a study were streaming providers cherish Spotify and Deezer. There are just a few boundaries to perceive into memoir, though. For one, Google says – for now, anyway – that it is likely you’ll presumably per chance well be no longer acquire and set up apps whilst you are driving. Elegant satisfactory. Or no longer it is significant to level to that you almost definitely can’t engage with some apps the style it is likely you’ll presumably per chance well for your smartphone, either. We’re informed that it is likely you’ll presumably per chance well no longer, articulate, flee via the entire lot of your Google Play Tune library on the touchscreen to search out a song – the abilities is limited to just a few diverse interactions that are already enabled in Android Auto at the present time. For that, you’re at an advantage preserving down a button on the steering wheel and asking Google Assistant for some assist. (emphasis added.)
But by having a entire integration of Alexa into the very core of QNX, you maintain a Cortana-cherish, Siri-cherish, or Google-cherish direct assistant, but better (Or no longer it is Alexa) resplendent for your automobile.
I produce love “Hiya Google”, but I have been an Echo user since pre-launch in January of 2015. The entire direct assistants are precise, but this article will not be any longer to debate which direct assistant is appropriate, but quite spotlight the very fact that Alexa, with her app store (known as abilities), will shortly gain its manner into your automobile in a native trend.
With the exception of for presumably music, getting directions, and heaps others., no longer many of those abilities are acceptable for automobile. But, (and right here is why I discussed the BlackBerry/Alexa Mission method being co-developed with Amazon,) apps will be written. BlackBerry with out a doubt can’t plop an Amazon Echo down on the company convention desk and call it an endeavor-method with the total key sauce of BlackBerry without writing some apps.
Hiya BlackBerry! When that you would have the ability to maintain no longer already thought of it, redirect some of those “endeavor apps writers” to invent apps for Alexa within the automobile. Severely. And when that you would have the ability to maintain no longer but started constructing an Alexa-centric infotainment method based entirely upon QNX, successfully, then, I’m disappointed in you.
Show that even with the combination of Alexa by 1/three-celebration automobile manufactures, BlackBerry will lose out on the additional earnings since they’d no longer be offering the answer. BlackBerry desires to e book right here by offering the QNX/Alexa solution, entire with apps, to the automobile manufactures. Then allow them to set aside their skin on it.
Till this latest trend, I used to be firm that over time, automobile makers would pass far from QNX powered infotainment and adopt the feature-rich (read app store,) Android P for infotainment, whereby cutting BlackBerry out of the image. But it doesn’t want to be this kind. Alexa apps/abilities can produce most if no longer all direct actuated machine operations, cherish: turn up the A/C, play Coronary heart to Destroy Kim Petras, or gain the weather instances for the next day.
The build there is a hole within the Alexa abilities for automobile is within the exhibit oriented operations, cherish maps. But this doesn’t if fact be told distress me too unheard of as those are merely so many more apps to write.
Then, what few desired app facets can’t be mapped without wretchedness to the Alexa direct SDK, BlackBerry would write those closing native QNX apps in-condominium. I might presumably presumably imagine that most definitely the most glossy Alexa-Infotainment “By BlackBerry” apps might presumably per chance well be core and free to the client. Others might presumably per chance well be top payment apps, some with a service associated (cherish present road instances, and heaps others.)
Within this glossy infotainment mannequin, I might presumably per chance also without wretchedness watch selling 2-three paid apps per automobile at articulate $three. $three *three * a hundred and twenty million QNX automobile installations is $1,080,000,000. And that is the rationale no longer including habitual earnings from selling providers, cherish right-time road instances. Also, installations of this enhanced infotainment method on glossy vehicles might presumably per chance also generate 5x the $three-$5 bare-bones QNX infotainment now instructions.
BlackBerry will lose out within the infotainment condominium except it must deal with the severe lack of QNX apps. I watch appropriate two methods to attain this:
- Salvage their very possess Android-based entirely infotainment method.
- (Declare their over-the-air updates to) Push out an Alexa-centric infotainment method powered by QNX.
This day I’m a dealer of BlackBerry stock and can’t counsel a purchase at present. But if BlackBerry were to hiss one in all the next-gen alternatives for infotainment mentioned above, I might presumably presumably all but again transform selected the stock and purchase, especially at these quite low-stages.
In case your investment thesis is predicated entirely no longer less than in section upon BlackBerry’s automobile OS, QNX, please grab into memoir the easy job equipped on this level to.
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Disclosure: I’m/we are long BB.
I wrote this article myself, and it expresses my possess opinions. I’m no longer receiving compensation for it (as an alternative of from Seeking Alpha). I don’t maintain any industrial relationship with any firm whose stock is mentioned listed right here.
Extra disclosure: My long website online right here might presumably per chance also merely restful no longer be thought of necessarily bullish, I short BlackBerry excess of I withhold long positions. I’m on the other hand patiently awaiting a reason to maneuver sincerely long the stock, and the above article outlines one such scenario.