It’s not life-threatening when your phone crashes, but it could be if your vehicle does. But what if they are not so different? The union of connected cars and the ubiquitous smartphone brings both crashes and convergence.
Smartphone users are accustomed to charging up phones overnight, carrying an auxiliary battery pack if they travel longer distances, and managing a spent battery by reducing the load. Electric vehicle owners are coming to expect similar options for their electric cars. While drivers in North America still appreciate the prestige of equipping a vehicle with leather seats and surround sound speakers, what they really seek is battery range and features that preserve it, which are found in smartphones.
The importance of this is less obvious here than in other parts of the world, perhaps obscured by the upscale marketing of U.S. vehicles. They don’t sell cross-branded vehicles like a “Mint/Ford” or a “TMobile/Tesla.” Still, it has been rumored for years, then rebuffed by Apple, that Project Titan is a team working in the vehicle space.
Elsewhere:
It’s different in China. There, one of the leading smartphone (and home appliance) companies started selling electric vehicles in 2024. They report 100,000 of these vehicles, the Xiaomi SU7, were sold in the first nine months. But that’s a drop in the bucket- their competitor, BYD sold about 1.7 million cars.
Xiaomi is the first bona-fide smartphone company to launch an automobile. But there are other matchups in the wings. Sony (of Japan) is pairing with the Honda Motor Company to make the Afeela electric vehicle brand for the U.S. market. And Huawei, the global Chinese phone maker, partners with various automakers to produce an electric vehicle under the Aito brand.
Huawei is a company of particular importance in this market. This Chinese telecommunications giant began in 1987 as a provider for rural areas when they imported telephone switches. They grew and became, for a while, the world’s second largest smartphone manufacturer before being challenged by security and tariff restrictions. Domestically they collaborate with BYD, Dongfen, and other Chinese domestic car manufacturing firms. Overseas they work with Volkswagen and Stellantis. Huawei is particularly integral for autonomous vehicles and EV powered ones.
New Synergy?
The Chinese are known to lead in the electric vehicle market, at least in sales. They build 60 percent of the 14 million EVS sold globally. Market analysts say that the auto industry in China benefits from lower wages, expands by government subsidy, and prioritizes a vertical supply chain for batteries. But might there may be hidden synergy from their extensive research and development with smartphones? Does that give these overseas companies a fast- start and advantage?
Historically, there’s reason to think so. Way back in the 19th century, the first manufacturers of cars imagined horse-drawn buggies and carriages, and created car platforms that were similar. But the more successful entrants did not design around a horse and instead reengineered the platform to suit a motor, transmission, and steering wheel. There’s a more recent example if you consider the much touted Volkswagen Microbus, called the ID.Buzz. It’s a dud when it comes to electric vehicle range because the tall, rectangular, and flat faced- shape is not optimized for battery configuration at higher speeds.
Huawei, Xiaomi and other firms have deeper experience as telecom providers. That provides a layer of experience with batteries that U.S. and European car makers do not have.
Navigation, Apps, & More:
Consider navigational systems and informational centers: these have become a necessity in electric vehicles since they help drivers locate in real-time compatible charging stations. Then the same system, like a phone app, synchronizes with them for charging speed, time, and payments.
Apps help these telecomm based firms succeed. Having them is essential to a modern car, but the knowledge of how to develop them starts elsewhere. Currently, General Motors equips cars with its own informational apps, but has come under fire for ignoring Apple Play.
Perhaps the ultimate ‘telecom vs. auto company’ blow out will be found in the battery swap. Swaps are not new, and were proposed, then failed, nearly 20 years ago. Swaps are almost unheard of in the U.S. market, but have come to define another alternative for the Chinese. A purpose built car, called the Nio, sells about 222,000 units annually and is said to have between 1,000 to 3,000 swap centers. It takes about three minutes to drop out a battery pack and refresh it with a new one. For North American EV drivers, a battery swap seems dangerous and far-fetched. But for a smartphone owner, it’s just another energy saver and convenience.