"During the automaker's Tuesday earnings call, CEO Mary Barra highlighted the rapid growth of GM's in-vehicle software and subscription business. In the past nine months, GM's software generated $2 billion, and customers have already signed up for about $5 billion in future subscriptions. The company said it now has 11 million subscribers for its OnStar safety system, up 34% from a year earlier. Another half a million customers are also paying for Super Cruise, its hands-free driver-assistance system."
"Now, that's still just a fraction of its total revenue, which was $45.29 billion in the last quarter alone. But the margins on those services are also higher than on cars sales. 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's in-vehicle technology and subscription services generated nearly $2 billion over the past nine months and customers committed about $5 billion in future subscriptions. The company sells three main subscription products: OnStar safety features, in-car internet access, and Super Cruise hands-free driver assistance. OnStar has about 11 million subscribers, up 34% year-over-year, while Super Cruise has roughly 500,000 paid users. The software and services business retains roughly 70 cents of every dollar earned, far above typical auto margins, and GM plans to add features through over-the-air software updates to reduce hardware reliance.
Read at Business Insider
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