“With a flood of news heralding Apple’s move into the electric-vehicle market, it seems Silicon Valley’s invasion of the auto sector is becoming a full-blown assault,” Edward Niedermeyer writes for Bloomberg View. “But as significant as the tech giants’ entry into the auto industry is, the vagueness of their plans seems to be causing more confusion than clarity.”
“So much so, in fact, that the auto industry seems to be responding to the Apple news by questioning why any high-margin technology firm might possibly want a piece of its low-margin, capital-intensive business,” Niedermeyer writes. “Former GM Chief Executive Officer Dan Akerson told Bloomberg News that Apple shareholders should be wary of a move into auto manufacturing because “a lot of people who don’t ever operate in it don’t understand and have a tendency to underestimate” the industry. Akerson speaks from experience: His five and a half years as an auto executive were riddled with rookie mistakes.”
“Akerson’s latest mistake is failing to understand that no Silicon Valley juggernaut wants to simply beat the automakers at their own game,” Niedermeyer writes. “Silicon Valley has a shot at offering the first true private alternative to individual vehicle ownership. And with two of the biggest tech firms racing toward this vision, traditional automakers are on notice.”
Read more in the full article here.
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