Speculation about Apple Car is back. This is what we know so far

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The conversation about the iPhone maker’s ambitions to break into the auto industry has been going on for about five years. Expectations for the effort, called Project Titan, vary from the company that develops its own Apple-branded car supplying operating system software to existing car manufacturers.

An Apple car has the potential to become a “transformative event” for the auto and mobility industry in the coming decades, Morgan Stanley analysts wrote in a note to investors last week – just as the iPhone has changed the game for cell phones.

‘There is just so much going on in it [electric and autonomous vehicles] and connected technology, “the analysts wrote.” It may be an appropriate time for the world’s most valuable company to lend a hand in the $ 10 trillion global mobility market. “

Apple kept Mommy around its automotive ambitions, and the company did not respond to a request for comment on the recent reports.

Although Apple is famous because of its design and manufacturing firepower and is equal to money, cars are a completely different company with a lower margin. Still coming from behind in a new market has been Apple’s MO: Apple didn’t invent the smartphone, for example but it created an innovative, clean, user-friendly design that has revolutionized and helped space dominate the market.

Here’s what we know about the possible Apple car.

Why would Apple make a car?

Electric vehicles are a fast-growing industry and the excitement around it reached a new peak in 2020. EV companies have seen their stock prices and fundraising dollars grow healthy this year, unlike the many companies limping through the 2020 pandemic.

Analysts suspect that Apple and other tech companies like Google’s Waymo want to take that opportunity, especially as infrastructure expands to support greater adoption of electric vehicles.

Apple may also be looking at the rapid growth of Tesla, the world lleading manufacturer of electric vehicles. (CEO Elon Musk recently tweeted that he approached Apple CEO Cook about a sale to Apple during the early days of Tesla’s Model 3 program, but said Cook declined to meet. Apple did not respond to a request for comment.)
Elon Musk claims that Tim Cook declined to meet with him to discuss the purchase of Tesla
Tesla’s market cap has exploded to more than $ 630 billion – after its stock is up 682% this year, making it worth more than the combined market value of most of the world’s major automakers. Given that car development typically takes four to five years, Apple could now give the gas to ensure it can become a viable Tesla competitor.

“If they keep waiting, could Tesla be so far ahead of them that Apple can never catch up?” DA Davidson analyst Tom Forte said.

Some experts think it is more likely that Apple will partner with one or more car manufacturers to sell a car operating system, self-driving software or other related technology instead of making the entire vehicle.

“Collaboration probably makes the most sense,” said Mike Bailey, director of research at FBB Capital Partners. “The only problem I’ve heard of is that cars can be less profitable compared to Apple’s other products, so that’s a concern if Apple moves into a less profitable industry.”

It took Tesla years to become profitable, posting its first annual operating profit in January 2020 after nearly a decade as a public company.
Produce a car, or even an operating system, could be a new area of ​​revenue growth for Apple, something the company has been working on for the past several years following inconsistent revenue growth from its biggest revenue driver, iPhones.
Building self-driving cars could also create more time for people to use their iPhones, other Apple devices and Apple services. According to Morgan Stanley analysts, drivers and passengers worldwide spend 600 billion hours a year in cars. One of Apple’s car-related patents: a virtual reality system that can help passengers work in a car without getting motion sickness.

“When you look ahead, it’s hard to see that the Apple car is the next big thing, as the cloud has been before Microsoft and Google, for example. But then again, nobody really saw the cloud coming,” said FBB’s Bailey. “This could be very interesting for Apple, but it seems to go a long way.”

Wait, auto-related patents?

Apple has been granted many patents for a wide variety of vehicle inventions, such as systems for controlling the movement of autonomous (or partially autonomous) vehicles and methods to adjust the transparency or opacity of car windows.
2020: When the excitement of electric vehicles kicked into high gear
Apple has also fought to protect automotive-related intellectual property. In 2019, the FBI accused two Chinese nationals working for the company of stealing trade secrets from the self-driving car project. Apple said in a court that the exposure of confidential material would be “enormously harmful”.

Who is working on the project?

A search on LinkedIn reveals that Apple has hired experienced executives, engineers and supply chain executives from Tesla, Google’s Waymo, Fiat Chrysler, BMW, Ford, Uber and other automotive industry leaders in recent years.

Project Titan has attracted talent such as Doug Field, who developed vehicles at Tesla, Ford and Segway, and Julian Honig, a former Audi designer.

According to his LinkedIn page, Field joined Apple in 2018. CNBC reported in January 2019 that Apple had laid off 200 people from Project Titan; At the time, Apple would only share a statement describing a workforce redeployment with employees moving to other teams.

In short, the exact size and composition of the project are not clear.

What’s next?

In the short term, analysts say Apple likely has a few more pressing priorities, such as building the ecosystem around its 5G iPhone and ramping up its healthcare efforts.

But the idea of ​​an Apple car remains a tempting possibility.

“Do I think Apple could be a major competitor in electric autonomous vehicles if desired?” asked DA Davidsons Forte. “Absolutely.”

– CNN’s Matt McFarland and Sherisse Pham contributed to this report.

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