By Amit Kumar,
In the year 2008, Tesla began a mobility revolution by launching its initial electric automobile, the Roadster. After more than a decade, there is yet another revolution brewing in the automobile sector. Mobile handsets giant Apple is searching to make an entry in electric and self-driving mobility. Tesla and Google’s Waymo are also in the race. The causes are becoming more clear than ever just before: More than a century old Automobiles marketplace is anticipated to be nearly 9 instances bigger than the worldwide smartphone marketplace by 2030, the Automobile marketplace is dominated by conventional players who have a lot to shed by disrupting themselves. As a outcome, by the year 2030, marketplace disruption in the kind of self-driving vehicles is anticipated to be roughly $2 trillion, which was only $54.21 billion in 2019.
Coming back to Apple, the seeds of its entry into mobility marketplace had been sown in 2014 when Apple announced its entry into the automobile sector by way of a project internally codenamed ‘Titan’. Last 7 years have been of prolonged silence. But inside Apple ‘the Titan’ has been moving with its trademark secrecy and disruptive pace. As per most up-to-date reports project ‘Titan’ close to fruition. Apple is all set to create its electric – self – driving passenger cars by 2024. Apple Edging Over Its Technology Apple has its battery tech as the focal point this time for its automotive debut and as per reports Apple is also evaluating a mixture of batteries recognized as Lithium Iron Phosphate or LFP which reduces overheating and is safer than lithium-ion batteries. As per the report filed by Apple to the California Department of Motor Vehicles, in 2019, Apple’s automobile drove about 7,544 miles, which elevated to 18,805 miles in 2020. As the self-driving technologies is nevertheless in the initial phases, this technologies is probably to have disengagements or human interferences whilst the automobile is getting driven on the road. Possible selections to enter the Automotive marketplace for Apple Apple is new to the Automobile sector, but it has its USD 200 billion money reserves, battery technologies, application and design and style prowess to make a mark. This reminds us of what apple did in 2007 in the mobile handsets marketplace. To move forward, Apple has a couple of selections in front of itself:
The initial alternative is to manufacture Apple branded vehicles itself, which is capital intensive and could have a lengthy gestation period. Relatively new entrant, Tesla has faced challenges in meeting its automobile production targets. The second alternative is to companion with current automobile manufactures and license its design and style, application and technologies. Apple is currently in talks with Kia Motors Corp and appears to be favouring the second alternative.
How is the Auto Market Reacting?
Apple’s entry would certainly challenge a lot of automakers who are now taking the electric and self-driven automobile marketplace seriously. Year 2024 has the prospective to be the ‘Nokia moment’ of the Automobile sector. Reactions from Automobile sector leaders have been mixed. Some have shown scepticism questioning Apple’s selection and its potential to provide shareholder worth by way of vehicles, whilst other folks are affirmative about Apple vehicles, stating that it would be a revolutionary Internet of Things (IoT) upheaval for the sector. Would Apple be a Black Swan for Its Competitors? In the final two decades, Apple has constructed a formidable brand, which eases its entry into any new sector. People are more probably to purchase a automobile from Apple than to purchase a smartphone from a major Automobile manufacturer. This is the energy of brand Apple. Apple has a powerful foothold in the application ecosystem. Apple has a powerful lead in AI and Machine Learning powered architectures. While counting Apple’s strengths we have to not overlook that vehicles are machines and have moving components whilst phones are largely static devices. Apple’s core marketplace is smartphones and getting into into a gigantic segment like the automobile would call for Apple to add quite a few new capabilities. Apple is certainly aflush with money, prime talent and powerful intent, to create the future of mobility. A Battle Royale for the next king of human mobility is on cards, in between Apple, Tesla, Google and every single automobile manufacturer in the planet.
(The author is CEO, OLX Autos. The views expressed are his personal.)