“An Apple car is a long ways off—if it ever actually arrives,” Dan Gallagher writes for The Wall Street Journal. “Closer at hand are questions about how the company sees itself evolving.”
“Apple fans may squeal at the prospect of an iCar. And Apple’s enormous financial resources — which include nearly $178 billion in cash — are often considered a ticket into any business,” Gallagher writes. “Questions about a foray into the automotive sector don’t revolve around Apple’s ability to foot the bill, though. They have more to do with how well Apple would take to a highly regulated industry with long design cycles, not to mention one well outside its core competency.”
“So it is tempting to consider such a move as a fool’s errand,” Gallagher writes. “Even so, Apple is making this particular gamble from a position of strength… Apple can’t afford to rest on its gold-plated laurels. Nor can it think small. Growing projected 2017 revenue by just 10% would require another $25 billion in revenue—about seven times Tesla Motors’ current annual sales.”
Read more in the full article here.