Last week, there was a huge rumor going around online. Tons of people believed that Apple (AAPL) was going to join the race to build the first perfect self driving car. However, as more and more stories came out, it became clear that the idea of a car was all speculation. While the rumors about the idea that Apple (AAPL) would be building a car have proven to come from sources that we can’t necessarily trust, as I think more and more about the idea, I’m starting to think that it’s not all that far fetched. As a matter of fact, I wouldn’t be surprised if Apple (AAPL) really was planning on building a car and when a leak came out, they worked fast to debunk it. So, today, I’ll point out a couple of signs that Apple (AAPL) is interested in the the auto industry, talk about their ability to build a car if they wanted to, and discuss the probability of this rumor actually coming to fruition.
Apple (AAPL) Is Clearly Interested In The Auto Industry
The fact that Apple (AAPL) is interested in the auto industry is no secret. They’ve made that very clear with the following…
- Car Play – Apple (AAPL) is already toe deep in the waters. Have you heard of Car Play? Of course you have! It’s apple’s product designed to make operating a vehicle more enjoyable. The Dashboard deck features a sleek flat screen that offers just about anything any driver would need; even many things a driver really doesn’t need. Many people, including myself believe that this product is kind of like Apple (AAPL) putting its toes in the water to test temperatures; and, in my opinion, when it comes to Car Play, the temperature is about perfect.
- Tesla (TLO) – Tesla (TLO) is one of the world’s largest auto manufacturers; and guess what? Apple (AAPL) is interested in them. Recently, there have been a ton of rumors flying around about a partnership between the two companies. While the rumors haven’t yet come to fruition, it’s really not that far off. Apple (AAPL) is known for innovating and making products that are already there…better. Tesla (TLO) has a great product, but their not the top; and Apple (AAPL) may have just what it takes to push them there. So, a match between the two companies would be more like a match made in heaven.
So, keeping the two factors above in mind, Apple (AAPL) is obviously interested in the automobile industry. The big question is whether or not they will act on that interest.
Could Apple (AAPL) Manufacture A Car If They Wanted To?
Let’s face it, while Apple (AAPL) has manufactured computers, tabs, smart phones and more, a car is a completely different undertaking. So, a big part of the debate seems to be whether or not Apple (AAPL) even has the ability to create a car if they wanted to. In my personal opinion, the answer is yes; and it seems like Forbes agrees with me. Here’s what I think about Apple’s ability in the auto space…
- What Is A Car Really? – If you take away the frame, body and wheels, you’re left with an engine powered by a computer. Today’s cars aren’t as much of a mechanical masterpiece as they are a technological masterpiece and Apple (AAPL) is one of the royals in the technology world. So, couldn’t apple make the computer run the engine and just build a frame around it?
- Tesla (TLO) Comes Up Again – If Apple (AAPL) really is partnering with Tesla (TLO), wouldn’t that throw the doors wide open for Apple (AAPL) if they wanted to manufacture a car? After all, at that point, one of their partners could simply guide them through the process!
- Money – Apple (AAPL) has tons of money in the bank…literally, thousands upon thousands of pounds of it! If Apple (AAPL) really wanted to build a car, I’m sure they could find the best and brightest minds in the industry to pay handsomely for the favor.
Will Apple (AAPL) Build A Car?
In my opinion, it’s inevitable. The question really isn’t “Will Apple (AAPL) build a car?”, it’s more like “When will Apple (AAPL) build a car?” While the actually creation of a car may be years away, I believe that Apple (AAPL) has the ability and desire to do it one day.
What Are Your Thoughts?
Do you think Apple (AAPL) will be building a car in the future? Why or why not? Let me know in the comments below!