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Intel Deal an Important One for BlackBerry’s QNX Business

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Intel has chosen BlackBerry’s QNX solution for its smart car initiative

QNX is BlackBerry’s (BBRY) infotainment and telematics platform used in automobiles. Infotainment systems control the communication and entertainment systems in a vehicle. During its conference call to announce fiscal 1Q16 earnings, BlackBerry’s management noted that it had signed a deal with Intel (INTC), which chose QNX for its smart car initiative.

This is an important win for BlackBerry, which is still the leader in the automotive infotainment software market. According to a report from IHS Automotive, and as the chart below shows, QNX had a 53% share of this market in 2013. It was followed by Microsoft (MSFT) with a 27% share and Linux with a 3% share.

Apple (AAPL) CarPlay and Google (GOOG) Android Auto also opted for QNX software a few months back, which was another big win for BlackBerry. During the conference call, BlackBerry mentioned that there are now over 60 million cars using the QNX solution.

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Linux OS the biggest threat to BlackBerry’s QNX

Although QNX currently leads this market, the Linux operating system could be a threat to BlackBerry. The IHS Automotive report suggests that BlackBerry and Microsoft will lose market share to the Linux operating system, or OS, in the future. Apparently, Linux is set to become the leader in the automative infotainment operating system market.

The most attractive feature of Linux OS is its open-source nature, which means that automakers can customize features according to their needs. Automakers such as GM (GM) and Tesla (TSLA) have already adopted Linux, as it provides them with better control over their automotive systems.

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