Talks about Apple's car development venture continue as more evidence surface. Likewise, the attention over Apple's venture has been increasing because of its impending rivalry with Tesla. Bloomberg's Tim Higgins notes that Apple has been working secretly over a new car pushing its personnel to target a 2020 production. Higgins cites sources with "knowledge of the matter."
It often takes automakers five to seven years building a car. If Apple can follow through with its plans then it will be competing directly with General Motors Co. and Tesla Motors Inc. Both companies are looking to release electric vehicles around 2017. The electric vehicle will cost an estimated of $40,000 and could go for 200 miles with just a single charge.
Brian White, an analyst from Cantor Fitzgerald, appears optimistic about Apple's new venture. According to White's note to clients:
"Apple has clearly shown its interest in the auto market with CarPlay that was rolled out in early 2014; however, there has never been any official statement around an Apple Car. In our view, as more "things" become computers, we believe Apple is very well positioned to leverage its heritage in the industry developing hardware and software innovations together across a vast digital ecosystem, creating easy to use, aesthetically pleasing products."
White also notes that the next big thing for the company may also be robots. He points out to the growing interest over the said devices at the International CES. Cantor Fitzgerald believes that the company has the leverage to draw from its computer background, reputation, technological innovations and mobile devices to develop user-friendly solutions and deliver personal robots for home use.
Harvard Business Review's Michael Schrage also agrees with the venture. He believes that if Apple wants to transform the automotive industry then it has the resources and integrity to make it happen.
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