Aptiv PLC (APTV) Q3 2022 Earnings Call Transcript
Nov. 03, 2022

Adam Jonas of Morgan Stanley states Apple

"Apple is reportedly speccing out a 10 camera path of optical system and expanding CarPlay."

Adam Jonas
Thanks, everybody. First question is on commoditization of ADAS. You have this pretty dominant Tier 2 supplier (ie Mobileye) of ADAS system on a chip that's looking to become a Tier 1. Qualcomm announced this monster auto backlog integrating ADAS into infotainment. Apple is reportedly speccing out a 10 camera path of optical system and expanding CarPlay. So how fast is ADAS becoming commoditized in your opinion? And what does this mean for the ASUX business?

Kevin Clark
Adam, I'll take that. Listen, we don't view it as becoming commoditized. We have -- as I mentioned, we won another full platform program in China in addition to the large European program that we were awarded earlier this year. It's important that as a supplier, whether you're a Tier 1 or you alluded to the Tier 2 that you have the ability from a perception system standpoint across multiple perception systems, you have the ability to do sensor fusion, you have the ability to do integration and you have the ability to build domain controllers hardware.

And with respect to the players that you're referencing, I'm not aware of any of them that have had the experience and the capability across each one of those areas. So we view ADAS as an important area. We don't view it as an area that will become commoditized as we've talked about in the past. It's obviously an important feature for our customers. It's obviously a feature that helps them sell cars. And it's a feature that they make a lot of money on.