Apple: The next Tesla?: Page 3 of 3

October 12, 2017 //By Krishna Jayaraman, Frost & Sullivan
Apple: The next Tesla?
"It was September second week, and most of the smartphone lovers or Apple fans waited for the tenth anniversary of iPhone like a festival of sorts. Apple launched the next generation iWatch – capable of running independently with cellular, the iPhone 8, 8+ and the much awaited flagship iPhone X. It was very clear that Apple ecosystem of devices is expanding, which used to be a 3 model line-up has now increased to 5 models. But being a person who looks into details, the most interesting part was the A11 Bionic processor and Apple's announcement of making their own GPUs.

With investments in the right direction, patents related to connected car technologies, it is very obvious that Apple could potentially be the next Tesla here. They have the funds to trump the game. Apple's target would be immersive experience; something that they have done with iPhones has to be mimicked to a car to potentially monetize the 45-60 minutes of average commute time.

The biggest challenge automotive industry has is that each and every component comes from a different supplier; addressing issues with disparate systems takes a lot of time. Apple could potentially come with a full in house capability – not only look at the autonomous car, but could very well be a competition to the OS vendors, Biometric partners and eventually of course the content providers.

And the biggest deal is what if there is a service package which includes phones with data and cars with connected services offered as contracts – the entire ownership turns to user ship. With Samsung's acquisition of Harman and all the non-automotive participants keen on the data monetizing side of things, in a few years the Cupertino event could launch a new car – technologically advanced, hardware enabled with state of the art architecture.

The author Krishna Jayaraman, is the Programme Manager for Connectivity & Telematics, Mobility Team at Frost & Sullivan.

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