Apple has its sight set on a new industry. The tech giant is looking to create an electric car that would potentially compete against Tesla and other electric car manufacturers. Apple is still in the developmental stages of the car that they plan to build. Also, Apple has been hiring several hundreds of automotive experts to make sure they develop the car correctly. However, it will be a few years before Apple releases a car. One of the main concerns for this project is that the electric car team has to develop a suitable business model in order to impress the apple executives that this is a project worth doing. It is interesting to see how Apple is looking to expand to new markets. It will be interesting to see how other competitors respond to this act by Apple.
Article Link: http://www.nytimes.com/2015/02/20/technology/auto-team-is-forming-at-apple.html?ref=international
5 comments:
It's interesting to see Apple's plan to jump in a whole new market. I think car market is more difficult to enter because it depends on the infrastructure like electric station and people's change of habit. However, consider the success of past apple products, they might be able to market this and make it a huge deal all over the world too.
This reminded me of Mitsubishi in Japan. Mitsubishi is also involved in other industries, such as banking. I wonder if Apple will ever become that large-scale or if the government will prevent it.
Porsche is also planning on releasing its electric car in 2019. Mercedes,Nissan and Renault are also working on manufacturing their electric cars.
However, all these car manufacturers are not directly competing against one another as Apple is planning on producing electric minivans while Porsche is planning on making sports cars.
With so many electric cars in the future, I wonder if people will give up the traditional gas run cars for the modern cars.
The thing with apple is not the fact that it will be electric but the idea of having it be a self driving car like what google is doing right now. I believe this could severely hurt apple and detract from their main purpose but then again it is apple and everything they do is gold.
I do not feel that Apple should enter the car market. The increased regulation, scrutiny, and risks could damage the brand identity. I know they want to remain agile in a competitive world, but any slip-up like GM the past year, could deteriorate their strong economic moat in other areas.
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