Apple’s Autonomous Car: Out of the Box or Still Inside It?

Apple CEO Tim Cook provided a rare perspective on what consumers can expect from the now rebooted Project Titan, the Cupertino-headquartered company’s foray into the electric vehicle industry. Apple is one of the few companies with technological capability as well as the financial might to compete with the dominance of Elon Musk-headed Tesla.

It seems Tesla’s success in the autonomous electric vehicle (EV) segment lying at the intersection of the automobile and technology industries is finally inciting others to come up with their own iterations of the highly sought after product. Apple CEO Tim Cook provided a glimpse into what people can expect from their version of an autonomous vehicle.

Tesla, which has managed to capture 18% of the global EV market — the highest by any company — relies on its advanced technical prowess built over the years. Few have the technological capability as well as the financial might to compete with Palo Alto-based carmaker. Apple certainly does and that is exactly where the tech giant is heading.

Speaking with Kara Swisher for The New York Times, Cook said “I think Tesla has done an unbelievable job of not only establishing the lead, but keeping the lead for such a long period of time in the EV space. So I have great appreciation for them.”

The Origins — Where It All Began

Works for an Apple EV have been in the pipeline since 2014 via Project Titan but those efforts are yet to materialize. For a brief period in 2016, it seemed as if the company had shelved its EV plans. It is clear now that the Apple Car, whose development is headed by former Tesla SVP Doug FieldOpens a new window , with participation by Apple’s machine learning and AI strategy SVP John GiannandreaOpens a new window , could be a reality as soon as 2024.

The Apple Car, along with its healthcare and augmented reality are three areas where Apple hopes to shine in coming years. And why not? Apple’s Mac and electronics business is as good as ever, smartphones consistently deliver results (although the tech behind all smartphones seems saturated).

So when Katy Huberty, Managing Director of Equity Research at Morgan Stanley notedOpens a new window that, “A noticeable percentage of Apple revenue in any given year comes from products and services that didn’t exist 3 to 5 years ago,” it makes sense that Apple wants to diversify even more. The company allocates $20 billion for R&D expenditure, bulk of which is probably taken up by car and health and AR ambitions.

Spinning the Wheels

The Apple Car will be a consumer-focused autonomous electric vehicle that will likely integrate one of its most famous creations ever: the iOS. It’s a no brainer that Apple, whose core expertise lies in the tech stack that can unlock the ‘autonomy’ aspect, will lend it for the ambitious project. Apple even bought Drive.aiOpens a new window in June 2019 toward this end.

Investors, consumers, analysts, and the company’s competition all expect the Apple Car to be the next big thing in mobility, much like how it pioneered touchscreens for smartphones.

The question is this: will Apple’s involvement remain limited to the tech or will Apple go ahead with the creation of a new product line altogether as a part of the Apple umbrella, viz., producing the car themselves? The former is more likely.

See Also: Microsoft Bets Big on Nuance Communications To Realize Its Healthcare Ambitions

Connecting the Dots

Apple previously seemed to be in talks with Hyundai and Kia over the production aspect. But according to a report by The Korea TimesOpens a new window , the responsibility of production will possibly (and surprisingly) lie with South Korea-based electronic manufacturer LG in joint venture with Canada’s Magna International (LG Magna e-Powertrain), who are close to signing a deal with Apple. Autonomous EVs is an area the Korean company is looking to make its mark in since putting mobile device-manufacturing to rest.

According to @koreatimescokrOpens a new window , @AppleOpens a new window is close to partnering with @LGUSOpens a new window & @MagnaIntOpens a new window to bring the #AppleCarOpens a new window to production. LG has a deep knowledge of EV batteries & powertrains & Magna would bring production expertise. More from @roadshowOpens a new window & @helloimseannOpens a new window : . pic.twitter.com/1MEWIvMDfiOpens a new window

— Jim Trainor (@JimTrainorAuto) April 19, 2021Opens a new window

With production out of question, Apple will basically integrate the underlying components of the automation tech that goes in the EV. Cook also suggested something similar when he spoke with Swisher. He said, “We love to integrate hardware, software, and services, and find the intersection points of those because we think that’s where the magic occurs. And so that’s what we love to do.”

Apple will also “own the primary technology that’s around that,” much like everything else it has made until now. Even as Cook straightforwardly dismissed questions on their involvement, the CEO did mention what the AI-driven technology behind the EV entails.

Cook said, “The autonomy itself is a core technology, in my view. If you sort of step back, the car, in a lot of ways, is a robot. An autonomous car is a robot. And so there’s lots of things you can do with autonomy. And we’ll see what Apple does. We investigate so many things internally. Many of them never see the light of day. I’m not saying that one will not.”

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