![[IT큐레이션] What will happen when the Apple Car Shock becomes a reality](https://cdn.econovill.com/news/thumbnail/202101/514609_418323_1849_v150.jpg "[IT큐레이션] What will happen when the Apple Car Shock becomes a reality")
[이코노믹리뷰=최진홍 기자] The Apple Car Shock is storming the industry. With the prospect that Apple will actively enter the future car competition a few years later, the industry is keen on the future of Apple’s cars.
What would happen if an Apple car appeared, and if, as everyone would expect,’make an Apple car like an iPhone’? This is more likely to cause a post-storm beyond simply jumping into the automobile industry by smartphone makers. However, there is a lot of need to be calm.
Premise: Apple cars will not be released right away
Before talking about the Apple Car Shock in earnest, it is worth paying attention to the actual phenomenon of the Apple Car.
First of all, Apple has refined its vision for Apple cars for a long time. Project Titan has been prepared since 2014, and in 2015, he scouted Tesla employees on condition of a 60% annual salary increase, and in 2018, he obtained a pilot license for autonomous vehicles from the California State Transportation Authority.
However, the roadmap for Apple cars suffered a lot of ups and downs. When the late Steve Jobs aide Bob Mansfield retired, it was said that the project Titan he was leading was staggering, and Apple was concentrating on augmented reality and suffered a patent dispute with Qualcomm and suffered a 5G iPhone launch. .
It is relatively recent that John Giannandrea, Apple’s senior vice president of artificial intelligence (AI), recently started overseeing Apple’s Project Titans division. For that reason, the likelihood that Apple will launch an Apple Car right away through the Titan Project is close to’zero’. This is why Apple analyst Ming-chi Guo advised against investing in Apple because of the Apple Car’s vision, and why Tesla’s Elon Musk was publicly lukewarm about the Apple Car vision.
The industry sees the emergence of Apple cars around the mid-2020s.
Premise 2: Apple’s way
It is unlikely that the Apple Car vision will unfold in the short term. However, it is also clear that the situation in the past and the present, when Project Titan was wielding helplessly and its presence weakened.
According to the Digi Times right now, Apple is working with Taiwan’s TSMC to develop chips for self-driving cars, and it has been confirmed that it is creating practical results through the construction of a separate US factory. It is even said that TSMC’s recent advancement of hybrid vehicle converter and charger technology through gallium nitride (GaN) technology is related to the Apple car vision. It means that Apple Car is drawing a big picture based on advanced technology in terms of energy.
Then, it’s time to ask the question,’How will Apple make Apple cars?’ How Apple Makes Apple Cars
On the 13th, the Nikkei Asian Review analyzed the vision of the Apple car and that the moment the Apple car appeared, it would shake the global automobile industry. What is the reason? This is because Apple predicted that the Apple Car would be made like an iPhone.
In general, the automotive industry operates in a vertically integrated manner. This is because automakers stand at the peak of the pyramid, and parts makers take over their respective areas in order.
If the Apple Car succeeds, it is expected to completely destroy this formula. This is because, as Apple designs the iPhone and actually manufactures it, it is expected that’automobile foundries’ will be in charge of manufacturing if Apple designs an Apple car and provides drawings. Some refer to this change as’the subdivision of finished car makers into IT companies’ and’horizontal integration of the automobile industry’.
However, the result is different between’finished car makers becoming subordinated to IT companies’ and’horizontal integration of the automobile industry’.
If Apple designs an Apple car like the iPhone and passes it to a car foundry, this could be the concept of’substituting IT companies in the finished car industry’. It’s a nightmare for the auto industry. This is because a’new master’, an IT company, appears on the heads of those who have spent money in a way that maximizes brand value at the peak of vertical integration in the automobile industry.
However, it is unlikely that the automobile industry will suddenly change from vertical integration to horizontal integration with the advent of the’new master’, an IT company, that is, Apple. This is because Apple has produced iPhones through vertical integration in the IT field as well, and unconditionally works with multiple vendors to compete with subcontractors. A representative example is the case that Samsung Display opened the door to LG Display while receiving a display.
The reason why some media and experts argue that the emergence of Apple Cars will lead to horizontal integration of the automobile industry is happening because they mistake Apple’s way of making iPhones as horizontal integration. Apple does not stand on the same line and treats its partners, but rather puts itself at the top and competes with its subcontractors.
Body 1: Why Apple Cars are Scary
The emergence of Apple cars does not shake the vertical integration of the existing automobile industry. To be precise, Apple stands on top of automakers that were at the peak of the existing vertical integration, and of course, vertical integration is maintained. As an extension of that, the existing automobile industry’s vertically integrated’puzzles’ specialized in internal combustion engines are highly likely to be replaced. On average, the number of parts for an internal combustion locomotive is 30,000, but the number of parts for an electric vehicle is around 19,000.
In other words, Apple Car’s vision is expected to cause a post-storm that’good days in the finished car industry will disappear’ and’the fear of existing puzzles specialized for internal combustion engines will increase’ from the perspective of the industry.
In fact, the automobile market, where IT companies are at the top, is naturally expected to increase the dependency of automakers. This is the reason why it is said that Hyundai Motor Company is continuing Django while the news of the future car partnership between Hyundai Motor Company and Apple is known. Cooperation with Apple is quite attractive from the perspective of finished cars such as Hyundai, but if you go under the umbrella of Apple Car’s vision, you may become addicted to Apple. Since then, parts makers related to electric and hydrogen vehicles will emerge, and existing internal combustion locomotive parts makers are expected to face a crossroads of survival.
‘Car redefinition’ is another point to keep in mind.
Until now, automobiles have been recognized only as a means of transportation. The status and concept of’horse’ in the historical era are similar. However, with the advancement of automobile technology, it has become possible to secure various user experiences, and in this process, the pursuit of’the pleasure of driving’ has come. It is not unreasonable that some say,’The era of self-driving cars will not come because the joy of driving exists.’
However, the definition of automobiles where IT companies are at the peak is expected to be completely different. With the advent of Sony’s’Walkman’, we wake up the era of’new multitasking work possible through two hands freed while listening to music’ in a device that allows music devices to simply listen to music. It is necessary to focus on the case of targeting the interface of life.
Just as the off-line is changing violently with the advent of mobile technology, which is’that app’, the moment IT stands at the peak of the automobile industry, the car becomes a’platform’ rather than a’me of transportation’.
The shift from means of transportation to a platform creates a cataclysm beyond imagination. This is because the core of the automotive industry is focused on the traveling experience itself, rather than using a car to get to a destination quickly. Now,’moving’ is not a time to throw away, but a new living space where you can watch movies, get offline coupons, get relevant local information, and even create content. It is necessary to ponder the reason why Samsung Electronics’ Harman recently unveiled a digital cockpit 2021 with a’studio mode’ that can be used as a’Creator Studio’.
Above all, IT companies are also specialized in creating and operating these platforms. This is because the creation and operation of a platform ecosystem is an area that simple manufacturers can never follow and the main specialty of IT companies. Through iOS and Android, the ability of IT companies to operate the ecosystem has reached the level of hyper-connectivity, and the moment this philosophy is transferred to the automotive industry, the market is expected to change 180 degrees.
Not even other companies, the scene where Apple stands at the top of the automotive industry with Apple Cars is even more special. Apple is not just designing an iPhone, but a company that created the famous’Apple Fandom’ by putting software power into a device and tying it into storytelling. In short, it means that it is the world’s best company for selling sophisticated and attractive software to customers on hardware devices and platforms. In the future car market where the definition of automobile is completely different, what if Apple rises to the top of vertical integration of the automobile industry through the brand’Apple Car’ and seduces customers? It is impossible to guess the fear that the existing automakers and parts makers specialized in internal combustion engines, and even the entire industry will feel.
Body 2: Beyond Fear
While the vision of the Great Demon King of Angola, like the prophecy of Nostradamus, scares the industry, what kind of work would it take to face reality beyond that fear?
There are certainly cards that can be dealt with from the standpoint of the existing industry. First, in the short term, constitutional change is the answer. In the morning of October 21, last year, the Korea Federation of Automobile Industries held the 10th automobile industry development forum under the theme of’Future Vehicle Transition Survey Results and Policy Suggestion for the Automobile Parts Industry’ at COEX. It was said that they were not prepared for the market. You have to go beyond these limits.
Automakers have two options. Do you become a complete car foundry and subordinate, or do you play with your own brand and re-enact the former glory? First, the former is in jeopardy in that the existence of a company is staggering. There is a saying,’Why is there a reason why automakers can’t do it in the field of foundry, too?’, but Samsung Electronics is also a foundry, makes memory semiconductors, manufactures smartphones, and designs mobile APs by itself. The situation is different between a company that does everything and a company that only looks at the original company with one main skill.
However, let’s choose the latter, so this too is not confident. This is why Hyundai has given up engine development for internal combustion locomotives and actively seeks out a new vision for the future vehicle, and has started to launch strategies for future vehicles such as electric vehicles and hydrogen vehicles one after another.
First of all, automakers are moving in the field of self-driving cars, a part of mobility, actively meeting with IT companies to explore the possibilities. It is a plan to maintain the existing automaker industry success equation, which is to overcome immediate subordination through such a chemical reaction and win with its own brand.
From the standpoint of IT companies, the reason for partnering with automakers is the know-how of securing offline data and manufacturing, and securing offline data has risen to a level that even IT companies can not ignore, such as Tesla’s launching StarLink. As the’electric car blueprint’ implies, the attractiveness of automakers will inevitably diminish over time. My worries grow.
If you go one step further, you can take a strategy that immortalizes the tightrope of’complete subordination’ and’own brand’. A similar strategy could be implemented in finished car brands, but there are opportunities, especially in the electronics business. It is a way to build a presence that IT companies such as Apple cannot easily ignore with advanced technology while securing a B2B-specific increase in sales through future vehicle electrical equipment.
The recent trend of LG Electronics is drawing attention. This is because, by meeting with Magna International Inc, the world’s third-largest auto parts maker, to establish a joint venture in the field of electric vehicle powertrain (power transmission system), we are exploring various possibilities.
In 2013, LG Electronics established the VS (Vehicle Components Solutions) business headquarters (then the VC business headquarters) and showed ambition for the automotive electronics business. In the midst of this, in August 2018, it acquired ZKW, an Austrian automotive premium headlamp company, and is drawing a big picture of the electrical equipment business by mobilizing its electronic subsidiaries.
It also formed an alliance with Looksoft. This is because it has announced that it will launch a joint venture (JV) Aluto on the 27th in a partnership during CES 2020. Aluto’s initial capital is about 4 billion won, of which LG Electronics, which invests about 2.1 billion won, secures 51% of the total stake. Aluto plans to introduce integrated infotainment systems for vehicles, including the head unit and rear seat entertainment system (RSE), using LG Electronics’ Web OS Auto platform.
LG Electronics President Park Il-pyeong said, “The’Smart Cabin’ pursued by LG Electronics will show a remarkable change of reborn as an entertainment space by driving a display installed on the ceiling or window of a vehicle with WebOS Auto.” The change will bring a new mobility experience to users of future vehicles.”
The movement of the electronics business that LG Electronics shows has a strong charm in itself. The acquisition of ZKW and cooperation with Magna means first of all that it is a cooperative frontline with Magna, which is constantly connected to the vision of Apple Car, and also means strengthening the electronic equipment infrastructure in terms of hardware. With the launch of Aluto, the software infrastructure, the soul that fills the hardware battlefield equipment, is expected to create synergy with WebOS. It is LG Electronics’ “perfect strategy” approaching the future automotive electronic equipment market, and it is a point that players in the existing automobile industry should pay attention to.
Body 3: Stop fluttering
While the vision of the Apple Car is clearing, the industry is fluctuating, but some say’it needs to be calm.’ In particular, after reports that Hyundai Motor will join the Apple car roadmap, it is argued that Hyundai Motor’s stock price is on the rise.
First of all, if Apple is at the peak of vertical integration through the Apple Car Vision, it is unlikely that its manufacturing partner will be formed by Hyundai Motor alone. For Hyundai Motors to receive 100% Apple car production, the result itself is different from the vertical integration strategy that Apple has shown so far, especially the unique strategy that competed with vendors.
In the industry, the possibility of this cooperation is expected to be a picture similar to the urban aviation alliance between Hyundai Motor Company and Uber.
Hyundai Motor Company formed an urban aviation alliance with Uber at last year’s CES 2020. However, Uber just won Hyundai Motor Company as one of countless urban aviation partners. In fact, Uber was a subsidiary of Boeing at the time, Aurora Flight Sciences, Bell, Embraer, Joby Aviation, Pipistrel Aircraft, and It is said that it will meet companies with various manufacturing capabilities such as Karem Aircraft and Jaunt Air Mobility. Some of the partners even have real estate companies.
At the time <이코노믹리뷰>When asked the reason for cooperation with Hyundai Motor Company, Eric Allison, who met with Uber Elevator, said, “The automobile industry is gradually turning into a connected car trend, and the thinking of manufacturers seems to change a lot.” “More car manufacturers are interested in the sky. And, above all, Hyundai Motor Company has the know-how of world-class automobile manufacturers.”
To put it coldly, Hyundai Motor Company is just one of Uber’s urban aviation partners covering platform operations, and even that was a partner limited to manufacturing infrastructure. For that reason, some predict that the relationship between Hyundai Motor Company and Apple will be similar.
Conclusion and concerns
The Apple Car’s vision is clearly attractive. However, the blueprint is not yet clear, and above all, it is difficult to guarantee that it will succeed. The vision can be smooth and beautiful, but you don’t know what will happen in the real world.
Above all, Apple needs strong autonomous driving technology, especially artificial intelligence technology, to fully succeed in Apple’s vision. However, unlike other Silicon Valley companies such as Facebook, Apple has strict internal standards in securing data, which is the basis of artificial intelligence technology. It is meaningful in that it has preemptively established smart artificial intelligence technology guidelines, but it is a clear risk in terms of a cold business.