Apple Exec: ‘The car is the ultimate mobile device’

During the Re/code conference in Rancho Palo Verdes, California, Jeff Williams, the head of Operations at Apple made a statement that fueled the fire that Apple is indeed developing a car. Williams asked a question about what Apple was going to do with its huge cash pile besides stock buybacks and dividends. Apple now has over $193.5 billion dollars in cash. Williams response was in part, “The car is the ultimate mobile device, isn’t it?” Williams continued by noting, “We’re exploring a lot of markets.”

He also told Re/Code that Apple uses a unique method for choosing new markets. Williams explained that Apple decides, “Which ones are ones [in which] we think we can make a huge amount of difference.” Following the mysterious comments, Williams got back down to earth and talked about CarPlay.

The speculation will only continue for Apple. The organization has hired automotive experts to work on “Project Titan.” “They have also leased vans, which have been seen driving with special equipment all over them from New York to Hawaii. Unnamed sources have set Apple’s car production year for an electric car at 2020.

Despite the rumors, many remain unconvinced Apple is ready to jump into car production. Some skeptics see Apple more likely to make an acquisition in the automotive space than to blaze a trail with their own car. Tesla Motors is often seen as a possible target for Apple. Despite the war between the two companies for top talent, Tesla could be a company that Apple eventually buys. In an interview with the International Business Times, Thilo Koslowski, VP and automotive practice leader at Gartner Inc. spoke about the Apple-Tesla rumors.

In an IBT interview, Koslowski said, “That Tesla still requires more capital shows you that automotive is a very resource-intensive business. But I don’t think Apple wants to be a bank. Any partnership with Tesla would have to go well beyond that.”

One similarity between Apple and Tesla is that of their company stores. Both organizations sell their products directly to consumers. Tesla is in seemingly weekly legal and lobbying battles for the right to sell it’s vehicles without dealers. Could Apple become another automaker which positions towards a direct consumer selling strategy without dealers?

What is the answer to the multibillion dollar question … Is Apple going to make their own car by 2020 or is it pure speculation? What do you think about Apple buying Tesla and distributing their products without dealers? Finally, do you think the future of automotive is in Detroit, Silicon Valley or somewhere else?