Turning A Ford Into An iPod

Almost every business in the world that has hardware devices that run customized software want to create their own version of the Apple (NASDAQ:AAPL) App Store. Apple claims that developers have created nearly 200,000 applications and that over two billion have been downloaded from the store itself. Every handset and wireless operating system company that tries to compete with Apple has its own version of the store.

Now, Ford wants to be in the software application download business as well.

The Wall Street Journal reports that “The car maker hopes to persuade software developers to tap the Internet service, GPS location-finding capability and digital-music setup already found in its Sync entertainment-and-communications system, which it developed with Microsoft Corp.”

The biggest problem the Ford program faces is that there are a limited number of things that drivers can do while they are driving. Other activities become a distraction, and a danger. Ford does not want to be faced with the same sort of liability problems it had with design flaws in its Pinto and some of its SUVs. Those simply lead to fighting many defendants year after year in court.

The other target for downloaded applications in cars is obviously passengers many of whom have little to do while driving. Most cars have radio and CD devices. A growing number also have backseat entertainment DVD players and complex navigation systems. Passengers may be a good market for software and content that comes through the car’s satellite connection, but the competition is strong.

Almost every American who wants to own an iPod owns one. Others people who want entertainment have portable Sirius XM (NASDAQ:SIRI) players. Some consumers have portable versions of Nintendo and Sony (NYSE:SNE) game consoles. Others have portable DVD players.

Ford wants to compete with devices that are already in the car. Ford would have consumers download what they already bring with them.

Douglas A. McIntyre