The California technology company named ‘colossus’ behind apple, has recently confirmed its interest in self-driving cars.
Apple co-founder Steve Jobs, who died in 2011, contemplated putting the company’s hardware and software smarts to work in a car nearly a decade ago, according to reports.
However, in June 2017, Apple Chief Executive Tim Cook revealed that the company is focusing on software that powers self-driving vehicles, referring to it as by far “the most important project in artificial intelligence.”
Cook depicted electric vehicles, self-driving cars, and ride-sharing as major forces shaping the future of the automobile.
According to the Analysts, driverless cars that can be summoned on demand to whisk people where they wish when they want represent a gigantic potential market opportunity.
The California Department of Motor Vehicles recently gave permission to Apple to test self-driving cars.
After a billion-dollar investment by Apple in Chinese ride-sharing colossus Didi, Cook referred to unspecified strategic moves the companies could make together over time.
If Apple is indeed intent to merge into the self-driving car market, it remains to be seen how it will navigate that course.
Morgan Stanley said in an analysts note that Apple options include partnering with ride-share firms, car rental companies, or even auto makers.
“Core self-driving software is likely the first step in its autonomous pursuits, and we believe Apple will eventually move beyond just software into designing a full car and/or launching a platform for third party services and content over time,” Morgan Stanley said in the note.
The effort would take time and money, and the competition will be fierce, Morgan Stanley reasoned.
Apple is renting a small number of Lexus sport-utility vehicles from US car rental service Hertz to test self-driving software and sensors.
Despite having some $250 billion in its coffers, Apple is unlikely to buy a car maker because of concerns about finding footing on terrain so far from their area of expertise, according to Creative Strategies analyst Carolina Milanesi.