Though evidence exists that Apple is working on automotive development and research, it remains to be seen if the company will actually build a car.
Tesla showed the world last week that it is possible to unveil a vehicle with the same intensive fanfare and eruption of pent-up demand as any Apple device could offer. Model 3 preorders have already passed 200,000 which is double the total number of electric vehicles sold in the US last year.
In a recent article, well-known financial tech analyst Tim Bajarian with Creative Strategies points out that Apple’s sales and profits are mostly about the iPhone. “There’s an urgency now at Apple to continue growing the iPhone market,” he said. And though they can continue to drive sales with newer sexier models and new features, the company needs to expand into new areas.
Considering their $200 billion cash horde, the company could pretty much do anything they want, including building a car.
Despite the evidence amassed that Apple is at least looking to build a car, and the opinions of other well-known analysts, Bajarin does not think they will.
“I’m in the camp that says Apple will do stuff that will revolutionize the driving experience, as opposed to creating their own car,” he added. He suspects instead they are working on the technology that goes into cars rather than a whole car itself, a process already underway with Apple CarPlay.
Apple Car Fans reached out to Bajarin specifically to find out what odds he gave Apple building a car.
“I give it at 50-50%,” he said. “Apple clearly is interested in cars but given the competition and the overall market for vehicles I am still not convinced they will do a car themselves.”
“It makes more sense for them to make all cars connect to Apple’s eco system and Apple make these cars safer and more responsive to the needs of the drivers who have Apple augmented technology in their vehicles,” he said.
“You can’t count out the fact that they could do a car and surprise us all,” added Bajarin. “But this is way beyond their core competency and I just can’t see them doing it.”