Within Applied Solutions, Smart Eye provides Tier1 companies with algorithms and software for eyetracking.
Cameras and other hardware are procured directly from hardware suppliers or developed by Tier1 companies under their own auspices. Tier1 companies develop complete autonomous driving systems in which eyetracking is one of several systems. Most Tier1 companies do not have their own eyetracking software, but procure this from external providers such as Smart Eye.
When Smart Eye gains a design win together with a Tier1 company, this means that the autonomous driving solution (including eyetracking) will be integrated in an OEM's coming new car model. On achieving a design win, Smart Eye creates a solution together with the Tier1 company in which Smart Eye's eyetracking software is integrated with camera sensors and the rest of the autonomous driving system. Smart Eye receives ongoing remuneration from the Tier1 company for this work. When the car model goes into production, Smart Eye will receive licence revenue at up to EUR 10 per car produced, depending on the functionality enabled by the eyetracking system.
A design win is a customary supplier relationship in the automotive industry and is usually defined as a manufacturer's decision to develop a product, with the intention of including certain components from other providers. It should be noted that a design win is not the same as an order or delivery agreement. If the component supplier e.g. fails to achieve specific delivery dates or specifications, the component may be replaced with a similar element or system. When it comes to Smart Eye, a Tier1 company has achieved a design win in which Smart Eye's eyetracking software is part of the system solution covered by the design win.
In the automotive industry, OEM are developing production platforms that are used for several different car models. When autonomous driving systems are procured, this is usually for a technical platform. When additional car models are to be developed on the same platform, the OEM is less likely to replace the autonomous driving system. This means that once Smart Eye, together with the Tier1 company, has won a first design win from an OEM it is highly probable that the same solution will be used for the next car model based on the same platform.
Besides procurement for coming car models, Smart Eye also takes part in pre-development projects in which Tier1 and OEM companies develop concept studies or prototypes for autonomous vehicles. For preliminary studies of this type, Smart Eye is remunerated for its participation.