The Apple car rumors have been picking up steam lately, and recently Tesla CEO Elon Musk welcomed the idea of a car from the company. Musk is of the view that a bigger market for electric cars will eventually help Tesla.
Musk wants Apple in the car business
Apple’s unparalleled genius in consumerizing new technology and reports of automotive engineer poaching led many to believe that the iPhone maker may be a threat for Tesla. However, Musk has repeatedly encouraged automakers to enter the electric car segment.
During Tesla’s earnings call, while responding to a question asked regarding the negative effects an Apple Car could impose on Tesla’s business model, Musk said, “I actually hope Apple gets into the car business; that would be great.”
The Cupertino, Calif.-based company is supposedly working on an automotive design code-named “Titan,” with reports that around hundreds of workers are already working on it. The ongoing project remains a mystery, but rumors that Apple is working to build a full-fledged electric car abound.
There are speculations that the company is designing Titan with advanced CarPlay integration or a program that will improve Apple Maps with 3D street imagery. What gives weight to this theory is that a number of Apple vans have been sighted carrying high-tech surveying equipment similar to Google Street Views vehicles.
Apple Car– What are the odds?
Just a couple of weeks ago, investment research firm Sanford C. Bernstein noted various reasons to believe Apple could at least consider a foray into the auto market. Analyst Toni Sacconaghi said the automotive market is huge when compared to the watch market, and if Apple succeeds in getting only 5% of the global auto market, it will equal 25% of Apple’s estimated revenue for all of 2015.
There are reports that Apple could start production of the car by 2020, as the company has already reportedly hired experts in the car industry, including Johann Jungwirth, CEO of Mercedes-Benz’s research and development unit for North America, says the analyst.
The Bernstein analyst says Apple is among the few companies that do not shy from building their business in an established market where companies have been competing for years. Apple has not uttered a word on the slew of rumors and reports. This suggests these reports are for now mere speculations and should be taken with a grain of salt.