Apple Going Vroom, Vroom?!
Apple is all set to electrify the autonomous car industry ⚡But, what's in it for them? Read on.
The world, as we see it, is divided into two: those who LOVE Apple products, and those who see it as ‘irrational exuberance’. What everyone agrees on, though, is that the brand stands for quality and innovation.
From envisioning a future where every person would one day have a personal computer, to turning our handheld devices into one of the smartest machines available to common citizens, Apple has always stayed ahead in the innovation curve.
Or has it? Has it sustained being the one to ‘shake things up’? Or has it become more rational?
Let’s see.
Recently, Reuters reported that Apple is looking to launch its own autonomous personal vehicle (self-driving car) by 2024.
But, doesn’t Apple make only electronic devices?
Well, yes. And that’s how it’s looking at the car, too - as an electronic device (with a super cool design) powered by an awesome software.
While Tesla, the poster child for cool electric cars focusses on the premium, sports car segment, Apple is trying to make it affordable (Ahem! An affordable Apple product? Well...).
But, why do electric vehicles (EV) cost so much?
Because 51% of an electric vehicle’s cost is the battery cost (vs. 18% for a normal fossil-fuel engine - jargonists call it “internal combustible engine”). While there are other factors like range anxiety (uncertainty in terms of how far the vehicle would go on one charge, and whether one would find a power-station to charge it back again), the higher cost is one of the major bottlenecks.
This is where Apple is focusing - on reducing the powertrain (read, battery) cost for its electric vehicle. By reducing the battery cost, backing it up with a cool design and software, Apple could very well become the next big thing in personal vehicles.
And go head-to-head with Elon Musk’s Tesla.
From an uber perspective, what’s interesting is how the whole car industry is changing. The distinction between automotive companies and technology companies is diminishing. Today, no one can say, with absolute conviction, whether Tesla is a technology company enabling autonomous vehicles, or an automotive company backed by a powerful code (though looking at its share price, it feels like most people are valuing Tesla as a tech company).
Maybe it’s both.
Today, the demarcation between technology companies and age-old industries is waning. Maybe we are in for a future where every company is a tech-first company. Maybe spending on tech is no longer a luxury.
While Apple looks to make a name in this segment too, what remains a concern is its ability to create an entirely new supply-chain. Cars are no phones, after all. They come with their own headaches.
All in all, we are much excited about this battle between Tesla and Apple that will take place on the shop-floor. Who will win? The first mover, with a super eccentric leader, or the one known for innovation and being consumer first?
Only time will tell. Till then, watch this ad by Apple, celebrating “crazy ones.”
Goosebumps.
Doesn’t Musk fit this description better than Apple’s current CEO, Tim Cook? Just saying...
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