Apple to Make an Entry in the Automobile Industry with the Introduction of Electric Vehicles

Published Date : Feb 20, 2015

Apple has discretely been working towards designing a certain type of automobile. And at present, the company is motivating it team to start the manufacturing of an electric vehicle by 2020. Automakers take a time period of five or seven years for developing a vehicle. This could in a way underscore the aggressive targets of the company’s project, which will create a competitive field for customers who are with General Motors and Tesla Motors. Both these companies have targeted the year 2017 for releasing electric cars that will have the capacity to cover greater than 322 km on just one charge and the cost will not be exceeding US$40000. 

In the last quarter, Apple had reported a profit worth US$18 billion, with spendable cash worth US$178 billion. The research and development activities carried out by Cupertino was somewhere around US$6.04 billion in 2014. However, the company is at present facing the pressure of returning money (cash) to its shareholders. In addition, Apple’s CEO has also been pushing the company towards making an entry into newer avenues and categories in order to expand its product offerings. 

Apple’s entry into the area of automobiles is somewhat similar to the ways in which it entered the other industries. As a matter of fact, there were several other companies that entered the market with smartphones and digital audio players. Apple entered the global markets much after these products had already gained the desired popularity. A source from the company expressed that Apple may either put off or scrap its intended efforts towards manufacturing such a vehicle is need be.