According to a report released by Bloomberg, Apple has been in works to build a car, secretly, for the last five years. Bloomberg’s sources reveal that Apple has plans to produce its first car as early as 2020, and has already begun assembling a high-profile team, the process of which has landed them in a bit of hot water.
Lawsuits aside, the reactions to the Apple Car announcement have been varied. Media outlets have, overwhelmingly, reacted positively to the news. PC Mag says,
…the timing is perfect for Apple to enter the auto market for several reasons and, more importantly, gain a foothold in future transportation technology.”
And the Harvard Business Review comments,
If Apple truly wants to fundamentally transform the driving experience and global automobile business, it surely has the ingenuity and resources to do so.”
Responses outside of the media, however, were another story.
The conversation, made up almost completely of technology investors and founders, made some good arguments as to why an Apple Car might not be such a good idea after all. One of the better points made included the fact that, due to automotive gross margins being less than that of consumer electronics, Apple would actually be losing money by making cars.
While advocates harped on Apple’s disruption of the mp3 and smartphone industry as evidence of its ability to succeed in the automotive market as well, doubt colored the majority of the conversation. Consumers shared in that skepticism, and even poked fun at the idea of an Apple Car having a poor battery life.
Though we won’t have any definitive answers until the car is on the market, the opinion seems to be that Apple will have a lot of hurdles to overcome if they want to build a car, successfully. As the LA Times points out,
..the real question isn’t whether it can build a car, but why it would want to. That question doesn’t yet have an answer.”
Photo Credit: MIKI Yoshihito via Flickr