One gauge of the sweeping changes looming in the automobile market is that Apple is ramping up its efforts to introduce an eco friendly electric car by 2019. The most recent update about automotive aspirations of the tech giant came from The Wall Street Journal report that reported Apple Inc. is building an electric car which has been internally designated as a committed project.
Apple certainly possesses the financial strength to manufacture an electric car. It has the financial muscle to conduct R&D, design, manufacture, and sell an electric car that would be a hit among eco friendly car aficionados – similar to Tesla, Honda, and Ford Focus electric cars.
Come to think of it this is how mega rich companies continue to get RICHER, while the small companies fade into oblivion. But that is a debate that is not at all within the scope of this article.
The main question is will the Apple Car hurt or help share price of the tech company.
Analysts say that Apple’s move to make a dive into the automotive segment is certainly a smart move. The company needs to have a long term outlook and plan for the day when the iPhone is no longer able to drive revenue and profit growth. And it has to invest for the future to avoid the same fates that Nokia and Blackberry experienced moving from stardom to oblivion within a matter of few years.
Making the move to the automotive industry would give the tech giant access to a $1.6 trillion market that is expected to expand in the coming years.
The demand for electric cars is growing not just in the US, but all over the world. There is an increasing global demand for electric cars as an alternative to ones that run primarily on dirty fuels that pollute the environment. The colossal pollution problem in China has been attributed to petrol and diesel run cars.
Electric cars have a large potential market in Asia, Europe, and elsewhere in the world. For Apple an electric car would be the next big thing after the iPhone, which has captured the heart and pockets of billions of consumers the world over.
Apple electric car would strengthen the Apple tech eco system. It would integrate with its iPhone, iPad tablet, iTunes estore, and cloud service. Apple has long term plans of integrating its electric car with Siri so that self driving cars could become a reality. The car would drive passengers to their destinations without the driver putting one hand on the wheel or foot on the pedal.
The self driven electric car would take user commands from an iPhone or Apple Watch taking them to their intended destination using the shortest route and away from heavy traffic areas. This is similar to what David Hasselhoff used to do with KITT in the hit 1980’s TV show ‘Knight Rider’.
However, the company has to solve some vexing issues in order to make Apple Car a reality. It would need to construct a new factory or partner with a reputable automaker to build the electric car. It would also need to navigate through complex federal regulations relating to the automotive industry.
And Apple has both the financial assets, experience, and corporate will to make all that happen. We just have to wait and see how until 2019.