The Apple Car has miles to go before it hits the road in 2024. Till then, here’s all the obsession, speculation, and excitement about the iCAR!
Apple offers some of the best features, design, and technology that sets it apart from the rest. Apple users are always looking forward to hearing the latest, whether it is the next iPhone, Apple Watch, or the Apple TV. This time around, there has been quite a lot of speculation making news about the Apple CAR. While it is welcome news, it is also crucial to understand that the process involved in smartphone production and an automobile is different. Apple fans across the world are surely rejoicing over the news. But there are quite a few questions that need clarification before the investors get excited over the prospect.
Electric vehicles and autonomous driving are the next-gen technology for cars, and the timing couldn’t be better for an Apple CAR. Technology changes in the auto industry may change the looks of a car making it different from what it is today. There has not been any official communication from Apple about the Car plans. Industry experts are looking at more than a hundred thousand car sales in the first year and that the Apple car sales would reach a million by the end of 2030. While Apple fans may agree with the numbers, it does feel far-fetched since the car sales report between a group of Electric vehicle startups put together has been a hundred thousand in 2020. The purchase decision of a car is slightly different from a smartphone, and that can be one of the reasons why the numbers seem ambitious.
Watch: Here’s What iFans Can Look Forward To In The Apple Car
Purchasing decisions due to priciness, regulations of the auto business, and a few other factors may contribute to the numbers. Experts deny the buzz about the Apple CAR since it would involve government approvals, suppliers, factories, and many other infrastructure and process requisitions that are more complex than it looks. Whatever else may be different, all Apple fans are clear about not expecting any steering wheels in their car.
With all the speculation, a few things worth considering would be:
- The Apple car entering the market would accelerate the Electric Vehicle penetration.
- Existing automakers can benefit from the progressive approach.
- A collaboration between Apple and Volkswagen could be a possibility considering the industry dynamics.
Crucial questions to ask about the Apple Car:
- Production of cars involves heavy investment, and the profit margin is considerably low unlike the sales of computers, phones, wearables, and other accessories.
- Considering Apple is making its batteries, how Apple will make money would be one of the first questions to be answered.
- Apple is involved in various R&D projects, and Project Titan (for Cars) may be among the same. Whether Apple will invest in the auto sector or not is still a probability. The speculation may gain more momentum if Apple makes a breakthrough in battery making for autonomous technology.
Industry experts are also speculating over a few facts where the sales of iPhones have not been on the top line for the past few years and that Apple may not be interested in the auto market for the money. An average of six hundred billion hours is spent in cars per year and makes for a captive audience whose time could be part of the conversion. Apple reported a gross margin of 38% in the 2020 fiscal year, and the auto industry is a multi-trillion-dollar market. Tesla is said to grow by 40% this year and one of the biggest contenders in the EV business.
The auto industry is becoming more about analysis, hardware, and software design. Massive cash reserves and recruiting the best technical talent. There have been tons of facts and figures that boost doubts and provide convincing reasons about the Apple CAR speculation. It is a known fact that Apple finds a big market where competitors are already making progress and revolutionizes it in the later years. Whether the speculations will turn to reality and Apple will make a big win in the Auto market is to be seen.