Technology
giant Apple is looking beyond mobile devices to learn how to make a
self-driving electric car, and is talking to experts at carmakers and
automotive suppliers, a senior auto industry source familiar with the
discussions said on Saturday.
The
Cupertino, California-based maker of phones, computers and, soon,
watches is exploring how to make an entire vehicle, not just designing
automotive software or individual components, the auto industry source
said.
“They don’t appear to want a lot of help from carmakers,” said the source, who declined to be named.
Apple
is gathering advice on parts and production methods, focusing on
electric and connected-car technologies, while studying the potential
for automated driving, the source said.
“Fully
automated driving is an evolution. Carmakers will slowly build the
market for autonomous cars by first releasing connected and partially
automated cars,” the auto industry source said. “Apple is interested in
all the potential ways you can evolve the car; that includes autonomous
driving.”
Whether it will build and release an electric car or a more evolved autonomous vehicle remains to be seen, the source said.
But
clearly Apple has sharply raised its ambitions in automotive
technology. Car technology has become a prime area of interest for
Silicon Valley companies ranging from Google Inc (GOOGL.O), which has
built a prototype self-driving car, to electric car-maker Tesla Motors
Inc (TSLA.O).
An Apple spokesman in London on Saturday declined to comment on “rumors or speculation”.
Trying
to build an actual car would mark a dramatic shift for the maker of the
iPhone and iPad. Apple often researches projects which are then
discarded, but has so far mainly stuck to its core expertise in mobile
and electronic devices.
The
Wall Street Journal reported on Friday that Apple had set up a secret
lab working on the creation of an Apple-branded electric car, citing
people familiar with the matter. The lab was set up late last year, soon
after Apple revealed its forthcoming smart watch and latest iPhones,
the Financial Times said.
The
Journal said that the Apple project, code-named “Titan”, employed
several hundred people working a few miles from Apple’s headquarters in
Cupertino.
Apple
executives met with contract manufacturers including Magna Steyr in
Austria, a unit of Magna International (MG.TO), the Journal said. A
Magna spokeswoman declined to comment.
THE PATH TO SELF-DRIVING CARS
Autonomous driving is likely to emerge progressively as driver assistance systems become more sophisticated.
Already,
carmakers such as Daimler (DAIGn.DE), BMW (BMWG.DE) and Volkswagen’s
(VOWG_p.DE) Audi (NSUG.DE) have revealed cars that can travel long
distances without human intervention.
Analysts
at Exane BNP Paribas have said they see a $25 billion market for
automated driving technology by 2020, with vehicle intelligence becoming
“the key differentiating factor”. But the brokerage does not expect
fully automated cars to hit the road until 2025 or 2030, in part due to
regulatory hurdles.
Short
of building entire cars, there is money to be made from the software to
run a self-driving vehicle, as well as the services associated with
autonomous driving, such as mapping, car-sharing and car recharging
services, the auto source said.
“It’s a software game. It’s all about autonomous driving,” the industry source said.
Apple may be pursuing mainly auto industry expertise rather than full-scale partnerships with established car companies.
With
its soon-to-be-launched Apple Watch, the company had held limited
discussions with Swiss watchmakers, but no broad-based alliance emerged
from the talks.
Instead of partnerships, Apple pursued a go-it-alone strategy and turned to poaching talent from top watch brands.
Two different sources have told Reuters that Apple has tried to recruit auto industry experts in areas such as robotics.
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