Is Apple Entering the Car Business?

There have been numerous sightings reported over the past weeks of a van registered to Apple spotted in the Bay Area of California. Many have speculated that the vehicle, which was equipped with what appeared to be cameras on the roof, was Apple’s entry into a street mapping system similar to Google’s or a self-driving vehicle. Reports and speculation are now leaning towards Apple working on a secret project to actually enter the automotive manufacturing industry by building a full-fledged car after an anonymous Apple employee e-mailed a reporter at Business Insider about “vehicle development” at Apple. The employee also shared that Apple is recruiting Tesla employees vigorously.

“Apple’s latest project if too exciting to pass up,” the person said. “I think it will change the landscape and give Tesla a run for its money,” reported the article on Business Insider.

Apple’s secrecy surrounding the issue only reinforces the credibility of their project to explore the automotive industry. It’s possible that Apple is only recruiting Tesla employees to improve upon and/or enhance its existing CarPlay feature that has just begun to roll out in 2015 model vehicles. It’s more likely that the tech giant has recruited Tesla employees to either assist with the over-the-air software updates that Tesla vehicles already have the capability. With vehicles beginning to integrate 4G LTE, it would seem as if it would be easy to use that data stream for any operating system updates. Tesla, however, has the ability to make physical changes to its vehicles over-the-air. If this is Apple’s goal, it would require enormous cooperation with auto manufacturers who are reportedly already harboring reservations about loss of some vehicle features to Apple.

According to a 2013 article, prior to his passing, Steve Jobs reportedly told a New York Times reporter, “…If he had more energy, he would have liked to take on Detroit with an Apple car.” It would be no surprise should it be revealed that Apple may have already been exploring this area and may have decided to proceed based on the success of Tesla. Apple has historically been slow to release new technology preferring to use a wait and see strategy through monitoring technology companies that are first to market. In example, the first commercially available portable MP3 player was introduced launched in 1997 while the Apple iPod wasn’t available until 2001.

Of course, should Apple be flirting with an attempt to “take on Detroit with an Apple Car,” it will likely face the same legal challenges that Tesla is experiencing implementing its direct-to-consumer business model. With Tesla making some headway with regulators, courts and some states, Apple may have now decided to pursue the dream of its much loved former CEO. For now, it’s all speculation and rumor except for the fact that Apple is pursing some secret project in the automotive space. Only time will tell the scope and details of that project as relates to the automotive industry.