Rumors have recently surfaced that Apple is working on a vehicle. The supposed Apple Car isn’t all too far fetched speaking that Doug Field and Steve MacManus had been brought onto the Apple team in late 2019. It has been open that Apple has been working on car-related technology to rival the infamous cars brought into the spotlight from Tesla, but why? Simply speaking, because they have the capital and resources.
Entering the car industry successfully is a tough competition that requires luck, money, and a large fan base. All of which Apple seems to have a lot of. Though, there is another thing that isn’t often brought up when talking about creating a competitor to the Big Three auto manufacturers. Distribution.
Ford, G.M., and Fiat Chrysler have had decades to perfect their distribution system and form locations over the entire continental united states. They have thousands of dealerships that sell and repair vehicles. They do not need to worry about if a recall occurs because they have the infrastructure to handle it.
What does this have to do with Apple’s ignorance?
Apple has a long track record of doing everything by themselves. The reason behind that may stem from the late ’90s where they had been licensing Mac OS to several companies to keep afloat. According to CFO Fred Anderson, “the strategy actually cost Apple money.” They have learned their lesson about cutting the corners of their walled garden in an attempt to make money and refuse to do it any longer.
The unwillingness and ignorance from Apple to work with other corporations will undoubtedly render an Apple Car launch a total failure.
The only feasible way for Apple to launch a car, an electric car, is to partner with the existing infrastructure that was laid by other car companies. Partnering with the likes of Tesla for their charging network, the Big Three’s dealerships for repair, and showrooms around the world to show their product.
If executed properly, Apple’s introduction into the car market could be a big upset into the car industry, but they already knew that.