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| Logos of Apple and Hyundai Motor Company © AFP=News1 © News1 Reporter Park Hyung-ki |
The US’s CNBC reported on the 7th (local time) that Apple’s i-car, where a joint venture with Hyundai-Kia Motors is being discussed, will have a significant impact on Tesla’s electric car.
CNBC predicts that Apple is negotiating with South Korean Hyundai and Kia Motors to create a self-driving electric car, iCar, which will put considerable pressure on the Tesla of Elon Musk, the world’s leading electric car maker.
“There is no question that Apple’s entry into the automotive industry will put pressure on the rest of the automotive industry,” said Michael Ramsey, Apple’s vice president of automotive and smart mobility.
“Apple’s ecosystem can be integrated into cars,” he added. This means that Apple’s iPhones and the like can be perfectly implemented in cars.
Automotive analysts are convinced that Apple’s entry into the automotive industry will intensify competition in the electric vehicle market in the future.
A source familiar with the negotiations between Apple and Hyundai-Kia Motors said that Ica is likely to enter production from 2024 at the Kia Motors plant in Georgia. However, he added that a perfect agreement has not yet been reached between the two companies.
Apple has developed Apple CarPlay, a software that mirrors most of the iPhone’s display onto the vehicle’s infotainment screen, and has already installed it on millions of vehicles through partnerships with automakers.
In reality, however, producing and selling cars with partners like Hyundai and Kia is not as easy as entering other consumer segments. This is because automobiles are a capital-intensive industry with longer lead times (period from ordering of goods to delivery of goods to be used) than consumer electronics, strict safety regulations, and much smaller margins.
Earlier, Bloomberg reported on the 5th that the negotiations between Apple and Hyundai-Kia Motors were stopped. This is because Apple was dissatisfied with the disclosure of Hyundai Motor’s cooperation. However, he added that it is not yet known whether the negotiations have completely broken down.
In addition to Hyundai and Kia, Apple is looking to cooperate with other automakers, and CNBC said that no matter which company it cooperates with, it will have a significant impact on the automotive industry in the future.