Apple´s iCar future seems inevitable, but promising when buying a German premium OEM

icarSummary:

  • Rumors that Apple may be building an autonomous system à Apple CEO Tim Cook confirmed that the company has a “large project” involving autonomous systems, but it’s not limited to self-driving cars
  • When Apple makes its entrance into the auto industry, it will likely be successful and highly disruptive. Apple has the much-needed software know-how to design an autonomous car and possesses unlimited resources ($150 billion of net cash and $50 billion of free cash flows annually) to invest
  • The Apple iCar will be electric and leverage Apple´s software competence, loyal customer base and brand appeal

So what:

  • While iCar rumors are around for years, it seems inevitable from Apple´s perspective to enter the car business in a significant way (CarPlay is just the beginning). Given the combination of existing competences, company size and available funds for investment only a mega tech profit pool would move the needle for Apple
  • Other mega tech trends (e.g. Cloud, Industrial IoT, Blockchain) are either already occupied by strong tech companies (e.g. Cloud by Amazon and Microsoft) or distant from Apple´s core and business strength
  • Combining Apple´s software and hardware competence, supported by a large-scale buy-and-build investment strategy, Apple has a unique opportunity to participate and potentially win a significant share of the Autonomous & EV market
  • The large-scale buy-and-build strategy would probably target independent, but leading premium OEMs (e.g. Daimler, BMW) with deep car production competence (Tesla is expensive and not strong in producing cars)

Stories to shine:

  • “General Motors’ answer to Tesla has been no different from Nokia’s response to the iPhone. “
  • “What is also amazing about electric cars is that they aren’t that much different from smartphones.“

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