This morning, Apple Inc. (NASDAQ:AAPL) announced CarPlay, an iOS-based infotainment system for the car. It appears that CarPlay will be driven through a connection to the iPhone via Lightning Connector. We are trying to determine whether Cirrus Logic, Inc. (NASDAQ:CRUS) will have dollar content in each car. If so, this would be a significant incremental unit opportunity for Cirrus. Ferrari, Honda, Hyundai, Jaguar, Mercedes-Benz, and Volvo are all expected to ship models with CarPlay in 2014.
Cirrus Logic, Inc. (NASDAQ:CRUS) already has dollar content in the Ford Sync infotainment system, and also lists Harman Kardon and Bose as existing customers.
- Honda Motor Co Ltd (ADR) (NYSE:HMC) (TYO:7267) ($36.05, NR)
- Hyundai Motor Co (KRX:005380) (005385.KS, KRW135,500, NR)
- Ford Motor Company (NYSE:F) ($15.39, Buy-Ward)
- Harman International Industries Inc./DE/ (NYSE:HAR) ($104.74, NR)
Analysts’ Update: Based on our discussions with Cirrus management, it appears that CarPlay is more of a software-based solution, so near-term, there should be no impact to our estimates. Longer-term, we continue to believe that voice will play an increasing role in the car and home. In order for that to happen, there will be a need for more accurate / higher quality voice processing, which should drive demand for Cirrus Logic products.
