Apple is reportedly is pushing its secret team to commence output of an electric vehicle as early as the end of the decade, people privy with the matter told Bloomberg. Carmakers usually spend between five to seven years to develop car, which means that the timeframe for Apple’s new project indicates aggressive goals.
An Apple EV is expected challenge current pioneers of such vehicles -- Tesla Motors and General Motors -- both of which are aiming to roll out by 2017 models that could travel over 200 miles on a single charge and cost less than $40,000. Steve LeVine, author of “The Powerhouse,” said on Bloomberg TV that the launch of those EV will be inflection point that brings on the “electric age.”
After posting $18 billion in profit in the last quarter, Apple has around $178 billion in cash – a lot of money that could be used to finance a number of new projects. Apple chief executive Tim Cook has been pushing for an entry into new categories to make the company’s products and services more ubiquitous among consumers.
Entering the auto industry would mark a similar track that Apple had taken before. It was not the first to offer a digital-music player or smartphone, but was able to redefine these products.
In a similar manner, Apple may not be the first to offer an EV, but it may redefine the category. But it has first to challenge Tesla, which has shown that the traditional barriers of entry into the auto industry are not really that difficult to hurdle.