Apple cars production will start by 2020 [REPORT]

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Apple cars production will start by 2020 [REPORT]
ElisaRiva / Pixabay

Speculations about Apple working on electric cars are in full swing with the latest one claiming the production will start by 2020

Apple has reportedly been working on making cars, and now it has been reported that the company is pushing its team to start production of an electric vehicle by 2020, says a report from Bloomberg, which cites people with knowledge of the matter.

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Apple creating a team of experts

According to the report, the car team at Apple has around 200 members, and the hiring was started a couple of months ago. A recent lawsuit against Apple further strengthens the speculations surrounding the creation of an automotive team. Massachusetts-based battery maker A123 Systems sued Apple for poaching a few of its vital employees.

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In a state court filing, the battery maker claimed, “Apple is currently developing a large-scale battery division to compete in the very same field as A123.”

The new electric car from Apple would directly compete with offerings from Tesla Motors and General Motors, both of which are expected to come up with a mass market electric vehicle in 2017 that could go around 200 miles on a single charge and cost less than $40,000.

Entering new segment not new for Apple

It’s not new for Apple to foray into a different segment. Apple was not the first one to come up with a digital music player or smartphone, but it was able to dominate the product category with a product that was unique and better than those offered by the rivals.

Apple has every means at its disposal to come up with a vehicle that can match Tesla’s performance. For the latest quarter, the iPhone maker posted record profits, leaving it with enough cash to explore new revenue streams. Last year, total research and development expenses for the company were $6.04 billion. Also Apple CEO Tim Cook has been encouraging the company to enter new segments to make life easier for users with its technology.

With unparalleled success in a short time, Tesla has proven that overcoming traditional barriers to entry in an auto industry is not that challenging. And Apple, with its remarkable track record, will surely try its best to excel in the segment. However, there are possibilities that the company may scrap the car project altogether if it is not satisfied with the end result.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
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