Why cars are Apple’s next big market

“Few industries are as highly regulated as the global automobile industry. Just this week, Volkswagen discovered it could be facing a federal criminal probe for allegedly cheating on toxic emissions tests,” Dawn Chmielewski writes for Re/code. “So why would Apple, the envy of the corporate world for making gadgets everyone wants, bother to venture into an industry so fraught with pitfalls? Some $2 trillion in potential annual sales, or even a fraction of that, has convinced the iPhone maker to move from the exploration phase to committing to a deadline to deliver an Apple-branded car.”

“Apple has made a practice of slipping into a sleepy market and making it its own. It has had amazing runs in PCs, digital music players, tablets and phones. But the global smartphone market, which accounts for nearly 70 percent of Apple’s revenue, is slowing down,” Chmielewski writes. “Sales are expected to rise 10 percent this year industrywide, down from the comparatively torrid 27.5 percent rate of 2014. Clearly, Apple needs big new markets to upend to justify its status atop corporate America and grow its $657.8 billion market capitalization.”

Chmielewski writes, “The global automotive market fits the bill.”

Read more in the full article here.

MacDailyNews Take: Or Tim Cook is just humoring Jony. 😉

The reason is the same reason it’s always been: Apple has, or thinks they have, something(s) unique to the category that will make a significant contribution to society.

SEE ALSO:
The deeper reason for an Apple Car – September 23, 2015
Volkswagen emissions scandal spotlights need for an Apple Car – September 23, 2015
Morgan Stanley: Apple Car, if true, ‘one of the most important moments in transportation’ – September 22, 2015
Former GM Vice Chairman Bob Lutz: Apple Car ‘is going to be a gigantic money pit’ – September 22, 2015
Apple speeds up electric-car efforts, aims for 2019 ‘ship date’ – September 21, 2015
Apple meets California DMV officials to discuss ‘autonomous vehicle’ – September 18, 2015
Documents confirm Apple is building self-driving car, Project Titan further along than many suspect – August 14, 2015
Apple Car development proceeds apace – July 27, 2015
Apple hires veteran Fiat Chrysler auto industry executive – July 20, 2015
What’s up with Carl Icahn’s sudden obsession with the Apple Car? – May 18, 2015
Survey: 77% of hybrid or electric vehicle owners would likely buy an Apple Car – May 13, 2015
Apple’s ‘Project Titan’ could reshape the auto world – February 22, 2015

30 Comments

  1. Waves in the US are only possible in business when you pick a new product and revolutionize it.

    That is what Apple has done in the last 20 years.

    Though it will be tough in cars, there is room to innovate in so many materials, functions, features and shapes such that I believe Apple’s efforts can be dramatically better than what we have now.

    Just my opinion, of course.

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