We have no doubt that Apple is one of the biggest company in the world.The company has excellent products computers, smartphones, smartwatches, software and many more. The company is one of the strongest company in this products lines; and there are many rumors about if Apple’s first car on the road in 2019.Should the car manufacturer be worried about this?
When the Apple firstly entered the Smartphone market in 2007 with iPhone, it turned the market upside down. Nokia just crashed, Samsung needed to change its strategy on producing phones.Until today, Apple releases 12 phone models However before iPhone, just Nokia and Samsung alone released more than 12 new models in one year of the period. Steve Jobs decided to enter the market at the right time and with the right product. Just like Elon Musk entered the electric car market at the right time with the right product, it did not matter whether or not, if there are big manufacturers in the car market, Elon Musk had a car idea that nobody made before.
Now Apple wants to enter this market but this time it is not going to be easy like smartphone market. Car producing is not like making a phone, we are sure Apple will make an outstanding design but as you know, cars need spare parts and producers need to have factories to produce these parts. That is critical because cars can be used more than two years under guarantee.Because of this, mass production was a problem for Tesla. Also, that is why Elon Musk just invested 5 billion$ to a new battery factory and planning to make new investments in China. Investing in China is critical for Elon Musk because, production in China will lower the cost besides it will become a huge market for the Tesla. The only way for Tesla to survive in this market is reducing the cost of the Tesla models and be able to produce competitive models.
It is highly possible that Apple will directly enter the electric car market, and they will have a little chance to get some of the market shares they desire, but three years is a long time. Tesla is improving its cars and investing more. Apple is against a company in itself, in this process Elon Musk is investing on new techs; like autopilot and he will have serious know-how. Tesla is like Apple.It always comes up with new technologies.So far, there were many e-car concepts but now manufacturers seriously think to produce e-cars, and they do not want to give all share to Tesla.There is something to do not forget that Tesla models have paved the way for the other car manufacturer.For example; BMW announced their I-Series, Chevrolet producing Volt, Audi and Porsche also announced their electric cars.
So until 2019, Tesla probably will release Model 3 which will be $35.000 with a 400-mile range. BMW will produce more I-Series. I am sure that the other giants of Germans and Japans will come up with new e-cars, so Apple will find itself in a shark tank, that is why Apple should be worried to enter to the electrical vehicle market, Tim Cook needs to play its cards wisely. Apple car should be affordable and reliable, the strategy they do with Beats is not going the work in the automotive market.
Lastly, it is a rumor that Apple may try to buy Tesla, we don’t think they can buy Tesla because Elon Musk does not want to sell it, maybe there will be a partnership or Apple can try to buy another car manufacturer, in my opinion it is more logical than start from zero.
