Steven Sinofsky:

It might seem like a small point today, but the locus of innovation in automobile electronics is shifting from hardware to software, and from the car manufacturers to innovative companies building transportation capabilities using mobile platforms. We see the convenience of using maps on a phone with crowdsourced data for road and traffic conditions. We’ve also seen entertainment unbundled, with the ubiquitous tablet now serving as the prime back-seat entertainer. Features that used to be original equipment or add-ons are better, more agile to change, and cost less when offered through modern mobile platforms.
 
 This sign has two disruptive elements. First, it is an economic challenge for auto makers who have spent enormous energy building out business and sales approaches based on car “electronics.” Disruption to this disrupts the economics of auto sales, especially since safety and comfort have been “pulled” into the assumed base price of cars.
 
 Familiarity and personalization of transportation comes from what is on my mobile device — not in the car — making the transition from one vehicle to another more seamless.
 
 Second, from a consumer or owner perspective, the familiarity and personalization of transportation comes from what is on my mobile device, not in the car, making the transition from one vehicle to another much more seamless. LocalMotion (Disclosure: Along with Lyft, it’s an a16z portfolio company; I serve on its board) even unbundles the most basic car functionality of entry and ignition, by using an RFID or other means to access the car. With that come all sorts of features previously dependent on a specific car, from GPS location to repair notification — all on my mobile device.