Skip to main content

GM Is Quietly Becoming a Subscriptions Company

1 month 1 week ago
"General Motors has been pulling a Tim Cook and boosting its software and subscription business," reports Business Insider. During the automaker's Tuesday earnings call, executives said they're increasingly leaning on software subscriptions like OnStar and Super Cruise to generate high-margin recurring revenue long after customers buy their vehicles. GM says OnStar brought in about $800 million in the second quarter, while Super Cruise revenue grew about 70% year over year. From the report: GM says its software business keeps roughly 70 cents of every dollar it brings in. That's a rare level of profitability in the auto industry, as many car sales generate just four to 10 cents per sales dollar. [...] GM expects to add about 1 million OnStar subscribers this year, bringing the total close to 13 million. Super Cruise, GM's hands-free, eyes-on driving system, is growing even faster. GM added about 70,000 subscribers during the quarter and expects to end the year with more than 850,000. Revenue from the service increased about 70% from a year earlier. And a lot of drivers are sticking around after the free period ends. GM said between 30% and 40% of eligible owners continue paying after their included three-year Super Cruise subscription expires. [..] "We do think we have tremendous levers, multiple levers of growth," Barra said on the call. "We definitely think there's a lot of opportunity at GM to grow, improve margins, and become less cyclical." "Software and services are becoming increasingly important to how customers experience GM vehicles and how we deliver value beyond the initial purchase," a spokesperson previously told Business Insider. "As vehicles become more software-defined, we can introduce new digital experiences through updates and optional services rather than hardware changes."

Read more of this story at Slashdot.

BeauHD

iOS 27 Code Suggests Apple Could Restrict Leased Devices After Missed Payments

1 month 1 week ago
Code found in the iOS 27 beta suggests Apple is developing a system that could restrict leased iPhones when customers fall behind on payments. The discovery follows a recent Bloomberg report that Apple may soon launch a new "Apple Upgrade" leasing program, allowing customers to pay for hardware through monthly installments. 9to5Mac reports: The code describes a system called App Managed Features, which allows an authorized financing or provider app to enroll an iPhone and perform ongoing status checks. If the contract is no longer in good standing, Apple's system services can place the iPhone in "Restricted Mode," which blocks access to most apps until the payment or contract issue is resolved, while keeping a small set of apps available. The fixed allowlist currently found in the iOS 27 beta includes: Accessibility Reader, App Store, Health, Magnifier, Phone, Clock, Settings, Wallet, Passwords, and the Restricted Mode interface itself. Apps that can send critical alerts, such as Messages, Home, and certain medication or safety apps, may also remain accessible. However, the provider appears to have some control over those exceptions. The code does not appear to cancel, suspend, or otherwise modify App Store subscriptions associated with blocked apps. As a result, a subscription could continue billing even while access to its app is restricted. Additionally, there isn't a fixed number of missed payments that automatically triggers the restrictions. The financing provider's app decides when to lock the device based on its own policies. Finally, the new framework also introduces a new type of activation lock called "Partner Finance Lock," which is meant to prevent users from erasing, reselling, or stripping a restricted device for parts.

Read more of this story at Slashdot.

BeauHD