Jim Cramer is a big fan of Apple Inc. (NASDAQ:AAPL), but that doesn’t mean the investor thinks they will be a success in every market. On Mad Money on Wednesday, Jim Cramer expressed doubt about Apple CarPlay, the firm’s in-car iOS platform. Cramer says that Apple will not dominate the market.
The comment came in response to a user question about Harman International Industries Inc. (NYSE:HAR). the firm makes in-car systems right now and has a market cap of $8.7 billion. shares have fallen by more than 13% in the last month, and one investor was looking to find out why. Cramer said it all came down to Apple.
Apple will not dominate
“Problem is the Apple car play. People think Apple will take over car infotainment. They are wrong and you should stick with Harman,” he told the caller. That’s far from negative on Apple’s CarPlay, but it does present some lack of faith.
After Apple killed the smart phone market with the iPhone and the Netbook market with the iPad, the firm will disappoint if it enters a market without at least trying to disrupt it. Cramer seems to suggest that Harman, the current leader in the space is sort of safe despite the intentions of Apple.
CarPlay is not a big change to the market in Cramer’s mind, and it’s not going to threaten the life of Harman like the Apple iPhone did to the Blackberry, Motorola, Nokia and so many more.
CarPlay has been less than a bright spot at Apple. The firm has yet to get any cars to take the system on board, though Chevy has promised it will offer the option to install CarPlay or Android Auto in many of its cars next year.
CarPlay slows to a halt
There is no doubt that the car market is not a passion at Apple right now. Tim Cook and his team have put a lot of work into Beats Music, the Apple TV, the Apple Watch, and perhaps even an Apple EV, but CarPlay remains out in the cold.
It has been hard to get firms to want to put CarPlay in their cars. Firms like Ford Motor Company (NYSE:F) don’t want a buyer deciding against their cars because they are Apple exclusives.
That caution has slowed the market. Cramer can see that. He reckons that Harman will be safe as a result. Car-makers simply don’t want to side with Apple or Google, and until they do neither firm will be able to get the upper hand in the market.
The Chevy compromise seems the most likely going ahead. If a customer wants Apple’s CarPlay they can have it, if they want Android Auto they can have it, and if they want the ordinary system, likely made by Harman, they can have that too.