“Reports about Apple preparing to enter the auto market surfaced last month, leading to frenzied speculation about whether it plans to sell its own car, partner with auto makers or try to grab more of the electronic and software content in vehicles amid growing consumer demand for better connectivity and the approach of autonomous cars,” Greg Keenan, Brian Milner and Omar El Akkad report for The Globe and Mail.
“Apple is keeping mum, but enough information has leaked out about its extensive research – including the code name Project Titan – to indicate that the tech giant is determined to win a bigger piece of a global market that generates $1.6-trillion (U.S.) in revenue a year from new car sales alone,” Keenan, Milner and El Akkad report. “Nothing has the potential to transform the auto industry quite like the entry of the world’s most valuable company into the market.”
“Apple’s cash pile of $179-billion is 20 times the annual capital spending of Ford Motor Co. Its profit is nearly four times higher than that of Toyota Motor Corp., even with the depreciated yen. And its global clout and market value in excess of $740-billion would qualify it for membership in the Group of 20 if it were to become a nation,” Keenan, Milner and El Akkad report. “Whatever form its vehicle plan eventually takes, it represents an existential threat to the auto club – some of whose members barely survived a brush with death a few short years ago… ‘The issue here is these guys are monsters,’ says veteran auto industry executive Tom LaSorda, former chief executive officer of Chrysler LLC. ‘They’re big, they’re effective, they have cash. I bet you this is being discussed in every boardroom. And if it’s not, they need to give the board a shakedown.'”
Much, much more in the full article here.
MacDailyNews Take: When Apple enters markets, it’s because they can bring something(s) so unique to the table that significant disruption is inevitable. We’ll see this next in the wristwatch market.
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