Alphabet (NasdaqGS: GOOGL) is integrating Google Play directly into XPENG vehicles, extending its software reach into in-car systems. The two companies announced the collaboration as part of XPENG's push to build out connected cockpit services around Android-based platforms. The deal gives Alphabet another hardware channel for Google Play apps, subscriptions and media inside XPENG's intelligent vehicles. The Google Play integration in XPENG cars is one chapter in a wider Alphabet story that goes well beyond this single auto deal. Our analysis turns up 1 major warning sign for Alphabet as well.
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