Report: Apple Chose to Develop Apple Car Alone to Avoid Further Delays, Currently Selecting Suppliers

[MacRumors]

Apple is developing its electric vehicle independently without the assistance of another automaker and is currently selecting final parts suppliers, according to sources said to be familiar with Apple's plans speaking to Korea's Maeil Economic Daily.

In line with a previous report from Reuters, the report explains that the company has had its own automobile hardware research and development unit since 2014, but due to development challenges, it contacted BMW, Hyundai, Nissan, and Toyota to explore joint development and contract production agreements.

During this period, its own department for vehicle hardware research and development is believed to have virtually stopped operating around 2016. Separately, software research on self-driving continued.

The talks with automakers apparently fell apart due to repeated delays and the wider industry transformation toward electric vehicles slowing down the progress of any joint development and production agreement. There was also reluctance from some large automakers about becoming a manufacturing subcontractor for Apple. Apple is believed to have decided that it could not delay the launch of its car any further.

With these talks stalling, Apple has entirely turned once again to its own development and restored the full operation of its vehicle research unit. Although Doug Field, Apple's vice president of special projects, recently left the project to join Ford, the company is still believed to have hundreds of engineers working on the vehicle.

Apple has now gone through the process of sending a Request for Information (RFI), Request for Proposal (RFP), and Request for Quotation (RFQ) to global automobile part manufacturers, which is understood to be a signal that the final parts suppliers for Apple's car are now being selected for outsourced production.

Mirroring the analyst Ming-Chi Kuo, the report places the launch of the vehicle around 2025 to 2027.

Article Link: Report: Apple Chose to Develop Apple Car Alone to Avoid Further Delays, Currently Selecting Suppliers

 

[CrapShack]

Mirroring the analyst Ming Chi-Kuo, the report places the launch of the vehicle around 2025 to 2027, with Apple's sales revenue expected to increase by approximately $64 million as a consequence.

Shouldn't that read billion? $64 million would be a rounding error in the sales of power adapters for Apple.

 

[iBug2]

64 million? Shouldn't it be billion?

 

[BrentT]

Building cars is hard. They have to be reliable and safe. Selling them with US states prohibiting company owned dealerships creates difficulties. I am surprised Apple is trying to get into this business as it is far removed from their core computing/UI focus. I hope they have figured it out as I would be interested.

EVs have many fewer moving parts compared to an ICE vehicle but the mechanical and electrical engineering still required in an EV is massive.

 

[jayducharme]

EVs have many fewer moving parts compared to an ICE vehicle but the mechanical and electrical engineering still required in an EV is massive.

Not only that, but safety regulations alone must be a huge hurdle. It's as if Apple is aiming to be an LG or Samsung, with a portfolio that goes way beyond its original core business of computers. I wonder if home appliances will be next.

 

[Armada2]

I thought Apple was just going to concentrate on the software for the car with its AI etc and then they can licence it to other companies for use as they will have all the data already collected etc.

As above says building cars is harder than building a mobile phone.

 

[subjonas]

64 MILLION DOLLARS!

 

[CPTmom2wp]

How will Apple resolve the continuing chip shortages that are plaguing other car companies?

 

[jz0309]

IF Apple were sending out RFP/RFQ, wouldn't they have a prototype, beyond CAD drawings? and if they had a prototype, we would have seen pics ... so, still not convinced of an "Apple car"

 

[5aga]

Apple would be making a huge mistake getting into the automobile industry.

 

[trash eighty]

I think Apple have missed the boat, a few years ago they could have got into the EV market fairly early but by mid-2020s most if not all the legacy motor manufacturers will have full ranges of EVs.

They might make a small fortune but it'll cost them a large fortune.

 

[MacManiac1]

They should buy Lucid and put their software on those cars.

 

[Freida]

they are so behind this its crazy. Tesla will be waving them in the rear mirror.

I'm all up for Apple car but I think that they won't be able to compete once Tesla sorts out its production issues

 

[LiquidJay]

Building cars is hard. They have to be reliable and safe. Selling them with US states prohibiting company owned dealerships creates difficulties. I am surprised Apple is trying to get into this business as it is far removed from their core computing/UI focus. I hope they have figured it out as I would be interested.

EVs have many fewer moving parts compared to an ICE vehicle but the mechanical and electrical engineering still required in an EV is massive.

It is projected that the global automotive industry will grow to just under nine trillion U.S. dollars by 2030

Probably worth a shot ...

 

[LiquidJay]

they are so behind this its crazy. Tesla will be waving them in the rear mirror.

I'm all up for Apple car but I think that they won't be able to compete once Tesla sorts out its production issues

more of a marathon than a race

 

[madmin]

'It's a long road, there's no turning back'

 

[madmin]

How will Apple resolve the continuing chip shortages that are plaguing other car companies?

They'll stick an M1 in it

 

[oldmacs]

I just wish they'd go back to making Airports and Time Capsules...

 

[Serban55]

If this is still in "Currently" status, that means this it will not see the day until 2025 at earliest

 

[NorthernSkyLights]

they are so behind this its crazy. Tesla will be waving them in the rear mirror.

I'm all up for Apple car but I think that they won't be able to compete once Tesla sorts out its production issues

That’s Apple. For the crazies. Like Steve Jobs said. Look how far Apple has come since the 90s a long way. At this point I’d say anything possible.

 

[alpi123]

I thought Apple was just going to concentrate on the software for the car with its AI etc and then they can licence it to other companies for use as they will have all the data already collected etc.

As above says building cars is harder than building a mobile phone.

It makes zero sense for them to develop software only to sell it to others.

Apple's software exists so that they can develop the hardware around it and optimize both parts. No way they would sell the OS. That's like them allowing other manufacturers to use iOS or macOS.

If anything and this car project fails, they'd rather cancel the whole thing, than releasing the software for others.

 

[Serban55]

How will Apple resolve the continuing chip shortages that are plaguing other car companies?

Apple is the only one that has no big issues with that because Apple bought 75% of TSMC manufacture capacity until 2024 for now (probably they will make a new deal by then to expand that)
Thats why the other companies have the real issues

 

[5232152]

They should buy Lucid and put their software on those cars.

Lucid are liars. As a stock owner of their hollow dreams, I would recommend everyone to avoid them till they can prove their worth.

 

[jayducharme]

they are so behind this its crazy.

That's Apple's M.O., actually. They're always behind the curve, but usually wind up synthesizing the tech better than other companies and setting a new standard. That said, I'm not sure how well an Apple car will sell. Perhaps $64 million is realistic, if the cars are priced near the six-figure range.

 

[Serban55]

Perhaps $64 million is realistic, if the cars are priced near the six-figure range.

per month, per year ? maybe that number will be for 5 years
Apple will never sell 64 mil cars per year...its not a 1000$ device.