17.01.2022
There have been rumors for quite a while now, that Apple is planning to develop their own car. Here is what we know so far.
They have recently started negotiations with the south Korean car manufacturers Hyundai and Kia. If the tech giant enters the mobility market, we will most certainly see a more rapid change in this branch.
Over the last couple of years, the speculations regarding an iCar have been ferly wage, but now the news reports are getting more specific. A south Korean newspaper reported that Apple is planning on investing a fortune in the car manufacturer Kia, to take over a production site in Georgia (US). The iPhone manufacturer wants to prepare for their own production in 2024. The “Wall Street Journal” reported that Apple expects to produce around 100.000 cars in the first year alone. Nevertheless, it is still not totally clear what Apple is planning for the future.
What makes the Apple car different?
There are many reasons why Apple is considering joining this market, but it mostly comes down to these three factors:
Software
The perception of cars is changing. In the past car manufacturers mostly differentiated through their brand, engines, design, and build quality, but these factors are getting less and less relevant. Today software plays an important role in that field. A vehicle can constantly be improved via online updates. Tesla already showed what is possible and other brands are following this trend. The market strategy is to give the user the opportunity to interact with their customizable ecosystem. This ranges from control over the infotainment system to using Apps.
E-mobility
Apple will most definitely not build their own production sites which means they have to rely on other subcontractors. Even though Hyundai denied any negotiations with the tech company, experts belief that Hyundai’s new e-vehicle platform E-GMP could be the base of Apples car. Hyundai expects E-GMP to have a range up to 500 kilometers in one charge. It should also be able to recharge 80 percent of the battery capacity within 18 minutes by an added quick-charge function.
Autonomous driving
In 2014 the Apple CEO Tim Cook apparently gave his blessing to the development of a car. Contractors already got to see a prototype, but apple decided to take a step back from that project. They wanted to focus on developing a software for autonomous driving. In the last couple of years Apple hired experts in the field of autonomous driving from the electric car pioneer Tesla. Nonetheless Apple is always trying to be as secretive as possible about upcoming products and this one is no different.
What does this mean for the automotive industry?
The industry is feeling the pressure rising. As cars become more and more rolling computers, companies in the IT sector are suddenly becoming dangerous competitors for the established car manufactures. Trends such as the transition to e-mobility and autonomous driving are accelerating the development of smart vehicles. The biggest fear of car manufacturers is to end up like Apple’s contract manufacturer Foxconn, whose factories assemble the Apple devices and which were degraded to an Apple subcontractor.
Written by: Antonius Eich
Sources: Business Insider - Mobility; Süddeutsche Zeitung - “Angst vor dem Apple-Auto”; ADAC - “Kommt nun doch ein iCar?”; NZZ - “Ein Tech-Gigant und sein fortgesetztes Scheitern beim Bau eines Autos”