Dozens of leaks have surfaced about the first Apple car. Although reports about the entry of technology companies into the automotive field have included other companies such as Xiaomi, interest is directed towards Apple. Because its products succeed in attracting millions of users around the world, in addition to the great cash wealth that the company owns.
According to several sources, Apple has already been working on auto-related projects over recent years. The first Apple-branded vehicle is expected to be launched within the next few years.
Analyst Katie Huberty, of Morgan Stanley, sees Apple’s usual strategy also being implemented in the automotive space. It is a strategy to slowly develop products – or features – to release them at the highest possible quality, which increases the chances of success.
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Until now, despite Apple’s involvement in this area according to reports, the company may cancel all its plans to enter this field in the event that it considers its inability to provide an appropriate product, or its inability to achieve satisfactory profits.
The car market has changed a lot in recent years. The world is also beginning to switch to electric cars more quickly due to the environmental risks of organic fuels on the one hand, and the high maintenance costs of conventional cars on the other hand.
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Apple car may turn into a service, not a product
A large group of countries in the world, on the other hand, have started to reduce their dependence on cars in general. This is as public transportation is starting to receive significant improvements, which may change the future of the market as well. As the user may find in public transportation sufficient advantages to make him give up buying a car in the first place.
For Apple, all of these factors may affect the entire project, as less reliance on cars will naturally reduce the company’s car sales. However, analysts, on the other hand, expect Apple to achieve sales of up to 1.5 million electric cars before 2030.
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Huberty believes that Apple may rely on the services sector mainly for its cars. This is because it only needs to provide a car with suitable performance and specifications, and then it can continue to profit from car owners by providing services and accessories.
In addition, the company may tend, as usual, to build an integrated system that links its car with the rest of the company’s products. This will increase the ease of use and the attachment of the car owners to it.
Perhaps the first step to implement this plan is the production of the car. And then Apple will be able to benefit from it for many years. The company also needs, as usual, to introduce touches of luxury and durability in its car, just like iPhones and iPads.
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It is no secret that the Cupertino giant generates billions of dollars in profits by relying on its services. Including the App Store, Apple TV+, Fitness+ and many more. And when it launches its first cars, dozens of other services may appear to serve owners. Which means more profits and more importantly that it is continuous and does not depend on sales.