Can Apple create a’new innovation’ in the automotive market?
Apple’s theory of self-driving car production, which seemed to be dying, regained strength. Reuters reported on the 21st (local time) that Apple plans to release self-driving electric vehicles in 2024, and the related market is shaken.
CNBC and many other influential media also cited Reuters reports, showing a lot of interest in Apple’s entry into the electric vehicle market.
Accordingly, attention is being paid to how Apple will enter the automotive market. At present, while the production of Apple-branded automobiles is being widely discussed, there is a possibility that it may be a software licensing method.
First challenge in 2014… Speed while recruiting Tesla executives
It was in 2014 when Apple first unveiled its electric vehicle plan. The news that Apple, one of Silicon Valley’s top innovators, is making electric vehicles, has shown great expectations.
However, the progress since then was contrary to expectations. What Apple chose to deal with the situation was the recruitment of Tesla’s vice president, Doug Field.
After Doug Field joined Apple in 2018, the electric vehicle plan, called the’Titan Project’, began to gain momentum. Field was one of the key players in the development of the Model 3 at Tesla.
Doug Field was overhauled last year by firing 190 people on the Titan project team.
According to reports on the day, the Titan project team led by Doug Field is busy with the goal of launching an autonomous electric vehicle in 2024.
According to foreign media, the most eye-catching part of the Apple electric car is the battery. Apple is expected to use a single battery manufacturing technology called’monocell’. In this case, the effect of significantly lowering the vehicle manufacturing cost can be expected.
Other than this, no specific details are known. Which partner to hold hands with and what shape of the car to present is still veiled.
There is only one thing that stands out. The point is that the self-driving electric vehicle that Apple is trying to make is a passenger vehicle. It’s the same way Doug Field, who leads the project, did it at Tesla.
This is quite different from Google’s approach. Google’s subsidiary Waymo’s self-driving car development is focused on Robo Taxi.
“A new opportunity for Apple” vs. “The car market has a different grammar”
When reports of Apple’s electric vehicle launch plan came out, CNBC reported that in Silicon Valley, optimism and pessimism were strikingly confronted, and a fierce battle was held, CNBC said.
One side predicted that the electric vehicle business would be a new opportunity for Apple. On the other hand, the other side made a negative prediction that Apple will face the harsh reality of the automobile market of’high investment, low margin’.
Pessimists point out that the auto market is very different from what Apple has been in.
Apple’s main business is smartphones, computers, and accessories. They are making high profits by offering premium products in this market.
But the car market is different. While a huge amount of investment is required, margins are low. The market grammar itself is different.
For this reason, there is also a prospect that Apple’s electric vehicle project will be at the level of R&D.
Related Articles
Tesla, debuting in the S&P 500, shakes the news of’Apple electric car’
Apple produces its own electric car
Apple’s self-driving car’Apple Car’ development accelerator pedal
The era of 20 minutes of electric vehicle charging opens
In an interview with CNBC, Evercore analyst Amy Daranyni predicted that “Apple is unlikely to enter the car business that is capital-intensive and has a low margin.”
However, he added, “If we successfully develop breakthrough battery or autonomous vehicle technology, it may be a worthwhile project.”