08-24-2019, 03:14 PM | #1 |
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Over the Air Software Upgrades coming to X7, including function purchase store
Video from BMW, showing Over the Air upgrades coming in the future. Presumably, this would include the X7 and other models. Interestingly enough, this will also apparently include a connected store, where you can purchase vehicle function upgrades on the fly, while driving.
I'm not so hot about this myself, for a few reasons. But hey, at least they showed the guy pulling over, while making the option purchases, lol. |
08-25-2019, 04:04 PM | #2 |
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If seems silly to me to put hardware on a car, and then lock out the functionality with software. What really comes into question at that point, is if the package option pricing are worthy of the functionality considering the manufacturer pays for the hardware to be installed, but then locks it out. That tells me, they are overcharging for the packages.
I usually get my cards fully loaded, so not really an issue for me, but something just doesn't seem right with this. |
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08-25-2019, 04:11 PM | #3 |
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Yeah, but on the other hand, maybe there is some function that you want to “try before you buy”, as you are not sure whether it would be worth it to you. There may be something that would allow that, with this approach.
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08-25-2019, 04:32 PM | #4 |
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This comes from tesla
It’s simplifies production, and makes it easier to upsell after the purchase At the end of the day weather it’s a good idea, comes down to adoption rates |
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08-25-2019, 06:32 PM | #5 |
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This is also the way the world is going.
I work in tech and financial analysts loooove subscription services and add-one as it creates a higher and steadiest revenue stream.
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08-26-2019, 07:18 AM | #6 |
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I do see benefits to BMW, for them to do this. As zmm12345 says, it makes production simpler. Instead of having 20 total production configuration options for vehicles, (other than color/trim choices) maybe they cut it down to just 5-6 production variants, something like (1)M-sport vs. Luxury, (2) Trailer Hitch, (3) Captains vs. bench 2nd row, etc. As much as possible, they install electronic-based hardware (i.e. Night Vision, HUD, gesture control, driving assistance) and charge the customer to enable it.
On BMW's side, that moves their operation even more towards mass production, reducing variables, churning out more vehicles that are configured identically the same. Buying even more items (i.e. Night vision) from their suppliers, will reduce their per-unit costs. Can charge for options, upgrades, and subscriptions, and overall profit goes up. However, on the consumer side, I just can't see how this won't translate into higher expenses. If you're going to put a piece of equipment (i.e. Night Vision) on every vehicle, whether the customer wants/orders/uses it or not, that's a higher cost. So you're going to have to charge the Joe Blow BMW owner for that piece of Night Vision equipment sitting in his car, that isn't enabled and doesn't even work, and/or, the other John Doe owner twice as much to enable Night Vision in *his* car, to compensate for Joe Blow not activating his. Definitely also a potential for BMW to start creating even *more* subscriptions or feature purchases, than they already have. (I think the current list of G07 subscriptions is 14???) In the future, will it be--you want an equalizer on your audio system? Feature enable purchase! Car alarm? Feature enable purchase! Etc. |
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