Today’s automobiles use up to 200 internal computers and cars are becoming computers on wheels. So, it’s no surprise that Apple is joining other tech companies in eyeing the $5 trillion auto market. Apple has not commented on its EV plans, but it has been contemplating a role in autos for years.
It has also been reported that Apple recently approached auto makers including Hyundai about a potential manufacturing partnership, then saw talks fizzle. “We have seen enough echoes in the supply chain that we know Apple is really looking into every detail of car engineering and car manufacturing,” says Peter Fintl, director of technology and innovation for Capgemini Engineering Germany, part of a multinational that works with dozens of auto makers and parts manufacturers. “But nobody knows if what Apple creates will be a car or a tech platform or a mobility service,” he adds.
If Apple jumps into the EV market, it could form a strategic partnership with an existing vehicle manufacturer. It seems that Apple might favor an Asian partner, such as Toyota or Honda, or even Foxconn, since Foxconn is now in the EV space and has a long-standing manufacturing relationship with Apple, making iPhones.
Stay tuned for what happens next, but Apple would be a formidable competitor and a potential serious threat to Tesla in the rapidly expanding EV industry.