Is Apple Looking to Dominate Your Car Next?

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March 3 (Bloomberg) -- Piper Jaffray's Gene Munster and Bloomberg's Jon Erlichman discuss Apple introducing CarPlay technology for iPhone use in vehicles. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Since 1995. what do you think about the announcement with this?

We know that apple has been talking to automakers for a while.

Now we see the fruits of that.

It is a step.

It is taking the technology of.

For what we think about it is this.

Apple realizes that the next area of innovation and they are trying to make it easier to use their products and lock you in.

It is less about making money about carplay and taking some of the friction out of using your phone which will make you more interested in holding onto your iphone longer or getting another iphone or i had her devices.

Apple is approaching this differently than library or microsoft appeared at the technology is not going to be embedded into the car.

It is more of a plug-in.

Right?

Exactly.

There will be some basic hardware that all of the carplay will have.

A button will allow you to activate siti.

-- siri.

As for the screen, it is to be determined what we will actually see on that.

Normally, if you do not have an iphone on your screen, you have other mapping tools and things like that.

You do not need an iphone to optimize some of the entertainment features of the car.

It would take some of the friction out which is what they're trying to accomplish.

What is your take on the brands that apple is working with here?

Otherwise, we're seeing a lot more high end manufacturers.

I think this is pretty common.

The higher end auto manufacturers like to be in a position to offer you lots of bells and whistles.

They love exclusivity.

That, as one of the first partners, which in a nice position to say that to any of your luxury car shoppers.

Obviously, down the road, and we are heard from other manufacturers saying we will be part of this pogrom at some point, if apple truly wants to make this about being connected everywhere for anyone who was part of this world of apple devices, they're going to have to open the doors to other players.

The very much plan on doing that.

The lifecycle of a car is longer than the lifecycle of an iphone.

Is apple committing to doing things a certain way for 10 years?

That is how long you might have your car if not longer.

They will probably keep changing.

The car may want you to buy a new car.

From apple's perspective, as you hold on, the average life expectancy of a car in the u.s. is just under seven years.

During that time, you typically with apple products will spend $5,000 on different projects.

I think they're interested in locking you in.

I ensure the automotive company will want you to increase how fast you buy the car.

Apple may be able to order it more quickly.

How big of an opportunity is this for apple in terms of revenue?

Let's it just fortifies the halo effect.

This is another angle to the halo effect.

The opportunity really is in keeping their existing base happy.

It is more about that than it is about having a specific website to revenue.

I think it is keeping the base in an android out.

Apple has really huge market share in the u.s. today.

We're seeing reports that apple is hiring a significant hundred of new engineers.

What do you know about this?

What does this mean about some of the stuff they are working on?

There is clearly new stuff coming.

The company on friday talked about that on their shareholders day.

We know there's new stuff coming.

I attribute most of these rumblings about hiring as more as standard operating procedure.

Keep in mind if you look at the total number of devices, 300 million a year, these are huge numbers.

The fact that they are hiring a lot of people in asia were the supply chain, they better be.

They are continuing to grow their business.

That is a sign that they feel comfortable that they are even growing.

Some do not believe apple is growing at all.

Maybe at the base level that is a positive sign.

You have also heard some big numbers about small screened that they are producing like that might be small enough for a watch.

Tell us what you have been hearing.

There have been some reports now.

This is a good example of some big numbers out there that you need to take with a grain of salt.

Recently there have been reports of the asia that between 40 and 60 million orders are for small screens which is probably more like a fit than a watch.

The reality is is is the most likely product category in 2014. some of these numbers, the reality is that there is some jockeying going on for supply of these screens.

Probably numbers you need to take with a bit of salt.

We think the real numbers are probably closer to 10 million as opposed to these 40 or 60 million.

What about a larger iphone?

Is that coming?

It has to be.

The company has said that they believe there is value in a bigger screen phone.

The cycle will suggest it will be august or september.

If you're interested in buying an iphone, it makes sense that you want the bigger screen to hold off until the fall.

Lacks do you want one of those bigger iphones?

Apple fit bit?

You could fit more people in the picture.

All right.

Thank you so much.

We will have more of "bloomberg

This text has been automatically generated. It may not be 100% accurate.

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