Pioneer 2010 Annual Report Download - page 11

Entering the Smartphone Market with a
New Business Model
Considering the potential size of the smartphone market and
the possibilities for developing applications, Pioneer will
develop a new business at the forefront of the market by
promoting the widespread adoption of car navigation applica-
tions for smartphones.
Currently, Pioneer provides car navigation systems in
which all necessary functions, including software, displays and
communications, are bundled together into a single product.
As a new business initiative, Pioneer aims to provide car navi-
gation applications—comparable to full-fledged car navigation
systems with communications functions—at a low price, by
combining car navigation information provided using the com-
munications functions of smartphones with the hardware
components that interface with vehicles. This will enable us to
provide high-performance navigation applications in compact
cars, light vehicles and other vehicle categories where the
adoption rate for car navigation systems has been low.
Pioneer’s Strengths—Supporting
New Business Models
Pioneer’s strengths lie in its expertise in not only the manu-
facturing and sales of the hardware that interfaces with
vehicles, but also in information services such as probe
(vehicle driving) information and map data. Probe information
refers to vehicle data that has been sent from car navigation
systems with communications functions to servers for
storage. This information includes data on vehicles in use,
including their position, driving duration and speed. The
collected information is analyzed in very short spaces of time,
and is made accessible via the car navigation systems of
vehicles on the road as real-time traffic information. For
example, because the probe information system analyzes
traffic information based on data gathered from vehicles in
use, it can provide at least 10 times more information than
the VICS (Vehicle Information and Communication System),
which conducts observations at fixed points using sensors
installed on roads. For this reason, probe information is vastly
superior in terms of coverage area. In addition, Pioneer’s
probe information provides various services other than traffic
information, including identifying parking lot entrances and
eco-driving and safe driving level assessments.
Pioneer is currently the only company, other than Japa-
nese automakers, that can provide probe information ser-
vices. Our extensive probe information, and map data, as
well as expertise in vehicle interfaces, are strengths that
cannot be matched by other companies. Looking ahead, we
plan to provide services that enhance environmental friendli-
ness, energy efficiency and safety using distinctive technolo-
gies that only Pioneer can develop as an expert in car
electronics. This includes providing information on charging
stations for electric vehicles and guidance on driving routes
that consume less power.
Information Services Provided by Pioneer
Hardware/Software
Map data
Current car navigation systems Display audio compatible with smartphones
(image photo)
Future new head-up display
Probe information
database
Probe information
database of
automakers
Coordination
Quick
charging station
Waiting time 0
minutes
Leveraging Pioneer’s Technological Advantages in the Smartphone Era
200M
Feature: Growth Strategy
PIONEER CORPORATION Annual Report 2010
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