Apple to make a disruption in the car market

With its work on CarPlay it has already entered the cars via the infotainment systems. With a global network of stores and huge stash of resources.

Apple to make a disruption in the car market

Apple has garnered goodwill over the years which will play a role when Apple AAPL launches the Apple Car. It will be expected to grab shares of General Motors and other car – makers on the basis of goodwill.

Apple, like Tesla, will not be using a dealership model. Just like the iPhone it wants to have the complete buy – sell experience. GM’s over the world will be at a disadvantage if companies such as Apple and Tesla bypass the dealership model. In many states selling cars to consumers directly is illegal. However if, this law, the U. S. Constitution could be amended twenty seven times then the law for sales of cars can also be amended.

Commoditization of components will lead to a fall in the prices of electric cars since they are similar to smart phones for that matter. As the components for smart phones became ubiquitous there was a fall in prices. This will happen for every company that enters this market of electric vehicles be it Apple or Tesla. Also Tesla today is more of a battery and software company than a car maker.

Apple’s entry in the auto industry will be highly disruptive. Apple will likely be successful, it has the technical know how related to building a car. With its work on CarPlay it has already entered the cars via the infotainment systems. With a global network of stores and huge stash of resources.

The way Nokia responded to iPhone is exactly how one comprehends the reply of General Motors’ to that of Tesla. The Chevy Volt was released by General Motors, a car which was ICE i . e . internal combustion engine based had and electric engine dumped in it. The isolation of these units and their mechanisms being completely different make it an issue for an engineer, who has worked all his life with ICE vehicles to adapt and turn to electric car engineers.

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