Apple might have to make its own vehicles to succeed in autonomous driving

“Apple has revealed that it’s working on self-driving car technology, but to succeed in the sector it might have to build its own car, Morgan Stanley said in a report Wednesday,” Patrick Seitz reports for Investor’s Business Daily.

“‘From the Apple perspective, core self-driving software is likely the first step in its autonomous pursuits, and we believe Apple will eventually move beyond just software into designing a full car and/or launching a platform for third-party services and content over time,” Morgan Stanley analysts Katy Huberty and Adam Jonas said in a report,’ Seitz reports. “They noted that Apple is most successful when it controls the entire experience of a product, making the hardware, software and supporting services.”

Seitz reports, “Apple Chief Executive Tim Cook told Bloomberg in an interview published Tuesday that Apple is developing autonomous-driving technology, but he declined to say whether the company will make its own car or just produce technology for automakers.”

Read more in the full article here.

MacDailyNews Take: How many operating systems does Apple make to be installed in other companies’ products?

I’ve always wanted to own and control the primary technology in everything we do.Steve Jobs, October 12, 2004

• In order to build the best products, you have to own the primary technologies. Steve felt that if Apple could do that — make great products and great tools for people — they in turn would do great things. He felt strongly that this would be his contribution to the world at large. We still very much believe that. That’s still the core of this company.Apple CEO Tim Cook, March 18, 2015

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  1. Either Katy Huberty knows something about Apple that Cook should, or Cook has been laying out some red herrings to throw the press off. I think the barrier to entry in the automotive industry is at its lowest point in the past 100 years. Making and selling an electric commuter vehicle is infinitely simpler than an auto with a combustion engine, transmission and full drive train.

  2. None of this means Apple needs to build an entire car. Apple remains the *only* company to make devices and the software, giving them a decided edge toward incorporating our personal devices into our future transport choices. To that end it is imperative for Apple to be on the cutting edge of this market if for no other reason than to weed out the difference between pipe dream ideas and those that are actually useful. There is no reason to compete in a segment that is seeing many makers struggle to exist for lack of profit, any more than making an Apple branded TV.
    Tim just likes being a tease by acting coy to their lofty questions because it’s great clickbait/advertising. He wouldn’t rule out Apple selling glass houses either.

  3. Apple cannot make anything without Foxconn’s chinese labor. Except of course the hot selling Mac Pro trashcan.

    If Apple can’t keep up with the competition on critical products like Airport, displays, and desktop Macs, they won’t survive in the cutthroat car industry. There is no way Apple has any prayer of making its cars entirely, let alone supporting them for the long term. Apple couldn’t even update the trashcan in 4 years despite instant feedback from pros telling Apple it was not competitive.

    If Apple is dumb enough to get into a low margin highly competitive fickle expensive business, you know to make a few percent more profit Apple will outsource everything. That’s all Cook knows to do. The dunce has zero skills in listening to customers or sustaining continued product improvement.

    1. With the inevitable advances in automation, Chinese labour is going to be much less important to Apple in the future. Cars are already largely made by robots and an Apple car would be designed to be fully optimised for robotic assembly.

      As for Apple trying to compete in a low-margin industry, Apple simply doesn’t do that. Even in industries where others operate at razor-thin margins, Apple differentiates it’s products and is able to command a healthy margin.

  4. If Morgan Stanley says that Apple needs to make its own cars to succeed, then I guess it is true because those guys know everything and never make any mistakes. /s

  5. It would be the first car with only a single pedal.
    The first model will come in a single trim and color, will not be able to use turn signaling, max speeds lower than 30, will not have windows, would run non-stop comercials on the radio, the nav will send you in the nearest river, park, desert or forest, the range will be only 50 miles, hood and trunk would be welded shut so the user cannot access the working parts or the internal storage, will only have the driver’s seat and only his door would be unlocked. You’d have to buy Apple’s overpriced passenger seats and you’d need to jailbreak the car to open the other doors, the hood and the trunk.

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