Let me remind you all about the AUTO-PC
I have not posted to this board for atleast a month, but I have been
monitoring the discussions on SI and have certainly been keeping up with
the day to day rises, but mostly fall of this stock. I think the past week or so
has exposed us all as either traders or investors. I prefer to label myself
as an investor. I first was introduced to this stock in July by a coworker.
I was excited about the technology and potential it has for many applications.
Today this coworker who has preached his intent of being long in this stock, dumped his shares. Many people are simply getting impatient and would rather dump their money into internet stocks that in theory rise exponentially each day. Even though many of these stocks have little fundamentals and are at their current prices due to speculation, hype and infamous bandwagon psychology. Below is an explanation of the most significant reason I am and will continue to be invested in GMGC.
AUTO-PC: Take my vision, from someone who works in the field of mobile audio electronics. I think this going to be the most significant development in the
high-tech sector within the next 1-2 years. People, we spend nearly 1-2 hours on average in our car each day, commuting back and forth to work, running errands and traveling on the weekends. The time we spend will only increase as traffic gridlock gets worse and the miles we drive increases (an upward trend since the 70's) This is untapped time that is ripe for commerical exploitation. Especially when as Americans, we feel it is our duty to constantly improve our personal productivity. I am confident that the majority of the time we spend sending/receving e-mail, interactively listening to news broadcasts and on-line shopping WILL BE in the vehicle environment, naturally through VUI. The Auto PC without VUI is doomed to fail.
No driver is going to start typing while they drive. A simple VUI is too impractical for the mobile environment. There is just too much background noise. You need a significant amount of computing power to accurately and quickly understand voice and make sense of a persons words in a car.
And it is in the best interest of the service provider to have the technology in a NOC not permanently embedded in everyones car, which would make upgrades difficult as VUI improves over time. Microsoft realized a while ago, long before GMGC ever came into the picture, that the PC would eventually makes its way into our cars. Would anyone like me find these new articles? Microsoft wants a large piece of this untapped market. But they can't do it alone and Microsoft knows that. Clarion is a company respected and trusted by automakers. Clarion manufactures OEM audio technology as well as aftermarket components. They are currently promoting their aftermarket Auto-PC which is way too impractical for the masses, as it exists right now. But it is a step in the right direction, integrating audio controls with PC functions. Microsoft is working with GMGC and Clarion to convince automakers to adopt this new technology. Microsoft is looking for a new application for windows CE and a portal to Microsoft Sidewalk. Gee, I wonder why they had that demo at the CES this January? Could it be that this is a great place to get good press and attention and impress automakers? Why would automakers be interested in this technology? The auto industry is the most competitive it has been in years. That is why you see big auto companies gobbling smaller weaker companies. It will be the survival of the fittest when the new vehicle market starts to turn sour. Auto prices are at their lowest in years (when adjusted for inflation and equipment). With most automakers producing reliable cars, they need to find new ways of seperating themselves and improving margins, especially when the profitable sport utility craze subsides. There is only so much horsepower, leather, so many airbags you can add to a car. So how about technology that will allow consumers to do more in their car? Or technology that will make day-to-day living with their car easier. GM is already offering a VCR and a small LCD TV in two of their minivans. Take Cadillac for instance (a division of GM). They offer the "On-Star" service, that with a simple press of a button can summon roadside assistance, directions, hotel reservations or allow an operator to unlock your doors remotely. One can only imagine the potential that a VUI based Auto PC could have for both automakers and consumers Hence I feel this is the most significant reason Microsoft invested in this company. General Magic is allied with Microsoft and loosely tied with Clarion, the current leader in auto based PC development. No other companies have publically announced any pursuit of this market. All that is required is a liason between the average consumer in his vehicle and Microsoft's abundance of online commerical services. This is where GMGC and Clarion complete the puzzle. No other company with VUI technology has the connections that GMGC does in this emerging market. Not to mention the other deals GMGC is currently working on with cellular providers. My only concern is how GMGC will derive revenue from these AUTO-PC services. I am not saying they can't. I just do not exactly know how. I would love some feedback and argument to my opinions. Lets get a serious discussion going.
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