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Apple is intensively researching all aspects of car development and production. But what form could Apple's vehicle project actually take? Many experts are now asking this question.
In conversation with the Wall Street Journal explained Peter Fintl, Director of Technology and Innovation at Capgemini Engineering Germany, says Apple’s presence in vehicle supply chains is noticeable.
We've seen enough hints in the supply chain that we know Apple is really looking at every detail of car development and manufacturing. But no one knows whether what Apple creates will be a car or a tech platform or a mobility service.
Apple could set up a self-driving taxi service
The report suggests that Apple's car project may not actually culminate in a complete vehicle available to consumers. Instead, Apple could try to use its software and chip design expertise to create a kind of next-generation vehicle platform that other manufacturers can use. However, this option runs counter to Apple's overall desire to vertically integrate the entire stack whenever possible and to control every aspect of the user experience. Still, according to the Wall Street Journal, there is "no clear indication" that Apple intends to use its philosophy of vertical integration for its vehicle project.
If Tesla is the model here, it is unclear why Apple executives would want to endure the arduous process of building the manufacturing, testing and service capabilities that this path would require.
If manufacturing a vehicle platform is unlikely to fit the company's ethos or goals, and manufacturing an entire car is impractical and likely to face stiff competition, the other option the report suggests is an Apple mobility business, such as a self-driving taxi service. Johannes Deichmann, a partner at management consultancy McKinsey whose expertise is software and electronics in automobiles, explained:
Apple could end up burning billions
Apple and others could design and commission vehicles that carry their branding and operate as part of a service they offer, without the actual manufacturer being seen on them.
Such a service would allow Apple to capture market share while the robot taxi service industry is still in its infancy and compete with providers like GM's Cruise and Amazon's Zoox. While the report is highly speculative, it points out that Apple's vehicle project hasn't yet delved deep enough into the supply chain to reveal the nature of the car itself and concludes by noting that "it's entirely possible that Apple will end up spending billions trying to develop an electric car without ever releasing a product." (Photo by kolonko / Bigstockphoto)
