Apple ICar: The Next Big Thing?

Jason R. Sakurai
by Jason R. Sakurai

Apple has targeted 2024 to produce a passenger vehicle that could include proprietary self-driving and battery technologies, according to Reuters.

Project Titan, The iPad creator’s automotive effort, started in 2014 with the goal of Apple designing its own vehicle. Apple later scaled back the effort to shift its focus elsewhere. Doug Field, an Apple veteran who had worked for Tesla, returned in 2018 to oversee the project, and in 2019 laid off 190 team members.

Apple has advanced to the point where it aims to build a vehicle for consumers, persons familiar with the effort said, requesting anonymity because Apple’s plans have not been made public. Apple’s creation of mass-market personal vehicles contrasts with rivals such as Alphabet’s Waymo, which built robo-taxis for a driverless ride-hailing service.

Apple’s strategy may include a new battery design that could drastically reduce their cost and increase the vehicle’s range, according to a person who has seen the designs. Apple declined to comment on its plans or future products and did not return calls to their media contacts.

Manufacturing a vehicle represents a challenge even for a company with ample resources that makes hundreds of millions of products each year with parts from around the world. In comparison, it took Tesla 17 years before it achieved profitability as a car maker. It is unclear who might manufacture and assemble an Apple car, but sources have said the company would rely on a manufacturing partner to build vehicles. Apple may decide to reduce the scope of this effort to an autonomous driving system, integrated into a car made by an existing automaker, rather than the maker of iPhones constructing an iCar from the ground up.

Pandemic-related delays could push the start of production into 2025 or beyond, persons with knowledge of Apple’s plans warned. Apple shares ended 1.24 percent higher after the news circulated on Monday, with Tesla shares ending 6.5 percent lower.

Outside partners may be required for elements including lidar sensors, necessary for self-driving cars to get a three-dimensional view of the road. An Apple car may need multiple sensors to scan different distances. These could be taken from internally-developed lidar sensors, such as those found in Apple’s iPhone 12 Pro and iPad Pro models, both released this year. Apple has reportedly held talks with potential suppliers, but it was also examining using its own sensors.

Apple plans to use a monocell battery design that bulks up individual cells, creating space inside the battery by eliminating pouches and modules that hold battery materials. More active material inside the battery could give the car a longer range. Apple is also contemplating using lithium iron phosphate chemistry, or LFP, which is less likely to overheat and is safer than other types of lithium-ion batteries.

Apple had discussions about manufacturing the car with Magna International, but these talks fizzled out as Apple’s plans became unclear. Automotive contract manufacturers require volumes that could pose a challenge to any newbie in the automotive market, Apple included.

“In order to have a viable assembly plant, you need 100,000 vehicles annually, with more volume to come,” the person said.

Apple investors reacted to the report on the company’s plans with care. Trip Miller, managing partner at Apple investor Gullane Capital Partners, said, “It would seem to me that if Apple develops an advanced operating system or battery technology, it would be best utilized with an existing manufacturer under license. As we saw with Tesla and the legacy auto companies, establishing a complex manufacturing network around the globe doesn’t happen overnight.”

Hal Eddins, chief economist at Apple shareholder Capital Investment Counsel, noted Apple has a history of higher margins than most automakers. “My initial reaction as a shareholder is that I don’t see the appeal of the car business, but Apple may be eyeing another angle,” Eddins said.

Apple started a revolution in personal technology when it rolled out the Macintosh computer in 1984. Arguably the innovation leader with the iPhone, iPad, Mac, Apple Watch, and Apple TV, Apple’s software operates across all of their devices, and services. My content has been created on Macs since the Classic was first introduced.

[Images: Apple]

Jason R. Sakurai
Jason R. Sakurai

With a father who owned a dealership, I literally grew up in the business. After college, I worked for GM, Nissan and Mazda, writing articles for automotive enthusiast magazines as a side gig. I discovered you could make a living selling ad space at Four Wheeler magazine, before I moved on to selling TV for the National Hot Rod Association. After that, I started Roadhouse, a marketing, advertising and PR firm dedicated to the automotive, outdoor/apparel, and entertainment industries. Through the years, I continued writing, shooting, and editing. It keep things interesting.

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  • Lorenzo Lorenzo on Dec 24, 2020

    When the CEO of Toyota says EVs are overblown, and echoes Musk that there isn't enough electrical generation capacity, it's too late for Apple to dive into a high capital/low margin industry that's still better at mass assembly than Tesla.

  • Blppt Blppt on Dec 24, 2020

    Wow, I thought for a second you had made a typo---they seriously put the 1.4T in the wagon? Do they do the same for AWD? From what I've read, the 1.8T was mostly just "adequate", so I can't imagine the 1.4 is too enjoyable to drive.

  • Dave Holzman A design award for the Prius?!!! Yes, the Prius is a great looking car, but the visibility is terrible from what I've read, notably Consumer Reports. Bad visibility is a dangerous, and very annoying design flaw.
  • Wjtinfwb I've owned multiple Mustang's, none perfect, all an absolute riot. My '85 GT with a big Holley 4 barrel and factory tube header manifolds was a screaming deal in its day and loved to rev. I replaced it with an '88 5.0 Convertible and added a Supercharger. Speed for days, handling... present. Brakes, ummm. But I couldn't kill it and it embarrassed a lot of much more expensive machinery. A '13 Boss 302 in Gotta Have It Green was a subtle as a sledgehammer, open up the exhaust cut outs and every day was Days of Thunder. I miss them all. They've gotten too expensive and too plush, I think, wish they'd go back to a LX version, ditch all the digital crap, cloth interior and just the Handling package as an add on. Keep it under 40k and give todays kids an alternative to a Civic or WRX.
  • Jpolicke In a communist dictatorship, there isn't much export activity that the government isn't aware of. That being the case, if the PRC wanted to, they could cut the flow of fentanyl down to a trickle. Since that isn't happening, I therefore assume Xi Jinping doesn't want it cut. China needs to feel the consequences for knowingly poisoning other countries' citizens.
  • El scotto Oh, ye nattering nabobs of negativism! Think of countries like restaurants. Our neighbors to the north and south are almost as good and the service is fantastic. They're awfully close to being as good as the US. Oh the Europeans are interesting and quaint but you really only go there a few times a year. Gents, the US is simply the hottest restaurant in town. Have to stand in line to get in? Of course. Can you hand out bribes to get in quicker? Of course. Suppliers and employees? Only the best on a constant basis.Did I mention there is a dress code? We strictly enforce it. Don't like it? Suck it.
  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
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