Apple needs to tap luxury car market
By Alex Webb / Bloomberg Opinion
If Apple Inc is going to make a success of its car project, it has to target the US$230 billion luxury auto market. Doing so might be the only way to keep investors happy.
However, displacing 125-year-old incumbents like Mercedes-Benz would not be straightforward.
The iPhone maker has reignited efforts to build its own vehicle, Reuters reported last month, although it is at least five years away from production, Bloomberg News revealed on Thursday.
Apple Inc CEO Tim Cook speaks in a special event at Apple Park in Cupertino, California, on Nov. 10 last year.
Apple CEO Tim Cook
If Apple is going to make a success of its car project, it has to target the US$230-billion luxury automobile market. Doing so may be the only way to keep investors happy. But displacing 125-year-old incumbents like Mercedes-Benz won’t be straightforward.
The iPhone maker has reignited efforts to build its own vehicle, though it’s at least five years away from production. Since the project started in 2014, Apple has undergone numerous false starts, laying off hundreds of staff in both 2016 and 2019, as costs ballooned and the focus shifted from electric vehicles to self-driving technology and back again. If CEO Tim Cook proceeds, he faces tough choices on how to enter a market with famously meagre profitability.
Here s how Apple can tackle the US$230B luxury car market bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.