Apple Car is once again in the news as Reuters appears to have gained some information from sources. However, Goldman Sachs analyst Rod Hall believes that Apple Car could be a “services-supporting” product instead of a regular car. Apple has years of experience in building hardware and software but has also recently invested heavily in services as well.
Goldman Sachs analyst says that Apple has expertise in building “battery technology” for its tech products such as the iPhone, the iPad, and the Mac. He also adds that the company has experience in managing power across its products which could turn out to be an advantage for Apple in building a battery powered car.
“Given the potentially low profit opportunity for Apple, a key question in our opinion is why Apple is attracted to autos,” writes Hall. Major automakers struggle to survive; Tesla struggled for years to stay afloat in the very competitive auto industry.
Years of experience in tech will be a boon
This year, Apple added LiDAR sensors to its iPad Pro and iPhone 12 Pro models to improve augmented reality (AR) experiences and also to improve low-light photography. Rod Hall says that carmakers are currently working on bringing the same technology to cars. If and when, Apple makes a car, its experience in LiDAR will be helpful.
“We understand that a car is a different type of platform, but we wonder if these platforms might evolve to allow Apple to participate in a different way which provides a lot of the platform position benefits without the potential negative financial implications of competing in the lower margin auto hardware arena,” adds Hall.
Rumors about Apple making its own cars have been flying around since 2013. Major news publications carried stories which suggested that the company had started a secret project titled “Project Titan”. However, it was reported last year that a team of 190 employees working on the much talked “Apple Car” had been shelved.