Apple is supposedly working on an electric vehicle dubbed the Titan to rival with Google’s own self-driving car as well as with Tesla’s offerings. Even though many dismissed the rumors about the Apple iCar as misleading, invoking that the Cupertino-based company is improving their 3D mapping technology and not testing an autonomous vehicle, voices within the industry say that the company has indeed started developing their own vehicle.
Former General Motors CEO, Dan Akerson, is very skeptical about the Titan project, judging by the comments made to Bloomberg reporter Tim Higgins. According to Akerson, Apple might be biting off a lot more than it can chew, and his reasoning behind his skepticism is quite logical. Akerson disclosed in his comments to Bloomberg that he thinks Apple is underestimating the way in which a tech company can enter the automotive market.
Apple shares would be impacted by the electric iCar attempt, according to Akerson, because shareholders would wonder about how the company would hold up their endeavor in the long run, as the automotive industry requires either a massive partnership with a manufacturer or enormous funds in order to be able to manufacture a car from scratch.
Tim Cook and co. need to take regulations and requirements into account when taking on the Apple iCar, and the company shouldn’t forget that the automotive industry is a heavy-manufacturing industry, according to Akerson. The former CEO of General Motors is right in his skepticism, as manufacturing an electric car from scratch needs a lot of funding and a lot of expertise, which Apple doesn’t really have at the moment.
Akerson proposed that instead of manufacturing the electric iCar, Apple should focus on infotainment systems and operating systems designed for vehicles. Apple CarPlay is one of the most popular infotainment systems on the market and improving that would be a more secure venture for the company. Akerson stressed the fact that a partnership with automotive companies would be of much more benefit to both sides. The heavy-manufacturing car industry just doesn’t seem suitable for Apple.
Apple has seen a huge growth in revenue and sales after the launch of the iPhone 6 and iPhone 6 Plus, and increasing profits after the launch of the iPad Air 2, as well. As a technology and software oriented company, Apple might not be ready to delve into the automotive industry. Still, sources claiming that the company behind the iPhone is working on an electric car mentioned that Project Titan will not necessarily become a reality, which leads us to believe that maybe the information is rather misleading.
Whichever the case may be, Akerson is right about the nature of the automotive industry and the relationship Apple has with it. Many say that the company doesn’t have the means to start manufacturing their own electric vehicle, but they sure have the funds for it. For now, all we know is that Apple is still focusing on technology and software. Company spokespersons have been mum about the matter, so we don’t even have official confirmation about the existence of the Apple iCar. We are curious to see if these rumors are true and if Akerson’s statements will be countered by Tim Cook and co. Stay tuned for more!