Domestic Black Box Market Stagnation... Tinkware's 'Connected' Gambit

Thinkware Q1 Operating Profit Down 48.1% Due to Profitability Decline
Impact of Ukraine War, Raw Material Price Increase, Semiconductor Supply Shortage
Continuous Growth of Premium Black Box Equipped with 'iNavi Connected'
1 in 2 New Cars Equipped...Expecting Profitability Improvement
Strengthening Domestic and International Connected Services...Showcased Vehicle Management System (FMS) at UK's 'CV Show'

Through connected services, you can check information such as vehicle impact status, parking location, and battery condition via your smartphone.
[Photo by Thinkware]

[Asia Economy Reporter Kwak Min-jae] Thinkware is seeking new growth engines in the Internet of Things (IoT). As the domestic market for related products such as navigation systems and black boxes enters a stagnation phase, the company aims to find new revenue sources in the 'connected services' market. To this end, Thinkware plans to strengthen the scope of services and product applications using communication networks and enhance connected services overseas as well.

Thinkware is developing 'iNavi Connected' as a core item of its connected services. iNavi Connected is a service that allows users to check the vehicle's current location, interior and exterior screens, and driving distance through a black box by installing the corresponding application on a smartphone. Since launching the connected service for black boxes using LG Uplus's communication technology in 2018, upgraded versions have been released annually. In 2019, the company launched 'Connected Pro,' which includes customer convenience features such as smart remote playback and emergency SOS alerts, and last year introduced the 'Connected LTE' service that notifies shocks with original footage instead of motion video.

Thinkware's move to strengthen 'connected services' stems from concerns that profitability in navigation and black box sectors may deteriorate over the long term. As the industry leader in this field, Thinkware's operating profit in the first quarter of this year was 700 million KRW, down 48.1% compared to the same period last year. The Ukraine war, rising raw material prices, and semiconductor supply shortages affected profitability.

On the other hand, the iNavi Connected segment continues to grow steadily. According to Thinkware, out of 1.6 million domestic new car sales last year, about 700,000 vehicles were equipped with black boxes capable of iNavi Connected services. This means that about one in every two new cars released is equipped with a black box supporting this service. If sales of premium product lines such as the T700 and Q1000 black boxes, which support iNavi Connected, increase, it will positively impact Thinkware's profitability.

Web screen of the iNavi Vehicle Management System (FMS) beta service, introduced in Korea on the 30th.
Photo by Thinkware

Thinkware also plans to expand connected services in overseas markets where it has gained an advantage through supplying BMW. In May, Thinkware participated in the 'CV SHOW 2022' held in Birmingham, UK, where it unveiled the Thinkware Connected service, an iNavi vehicle management system (FMS). On the 30th, the company introduced the FMS beta service for the first time in Korea.

A Thinkware official said, "Connected technology based on real-time communication networks will be commercialized not only domestically but also overseas in connection with the vehicle electronics market, and we plan to continue expanding it in the future," adding, "We will enhance competitiveness through differentiated technological advancement that organically connects vehicles, drivers, and products."

This content was produced with the assistance of AI translation services.