Currently reading: Will Apple's over-the-air business model work in cars?
Car makers are looking to maximise revenue from software updates. Will they be the golden ticket?

Apple’s profits margins are legendary, but topping them all are its margins for 'services'. These software-based features run at around 70% – roughly double those for hardware like iPhones.

Car makers, used to working on margins of up to 10% if they’re really focused, slaver at the thought of profits like that.

Now they think they can lift margins to tech-company levels with the same strategy: offering software-based services that car drivers will be happy to buy regularly.

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“A regular subscription income is like gold dust to any business,” says Richard Peberdy, UK head of automotive at consultantcy KPMG.

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