When a person talks about Apple in the field of technology, the first idea to run at the back of your mind is what new gadget has been released by the I-operating system company. However, it’s so unpredictable that a company famous for the gadget like phones, tablets, laptops among others switches dramatically to automobiles earning a place on the list of companies where people go for car acquisition, companies like Mercedes Benz, and Chevrolet among others.
Apple Inc. set aside a team which has been working secretly on producing an electric car, and the company is pushing its team to begin production of the automobile as early as 2020 for the reasons they are yet to enlighten us on.
The aspect of timeframe very crucial in this new Apple car export business venture, the team spends five to seven years developing a car. With the competition from companies like Tesla Motors Inc. and General Motors Co. which plan on releasing the electric vehicle by 2017. This will bring about a fluctuation in the car price since they are targeting the same market. The electric vehicle is designed to have the capacity to go more than 200 miles on a single charge and cost less than $40,000.
Apple, which earned record profit of $18 billion during the past quarter, has $178 billion in cash with few avenues and business opportunities to invest in. The California-based company’s research and development costs were $6.04 billion in the past year, and Chief Executive Officer Tim Cook is facing increased pressure to return cash to shareholders and stakeholders in the company. The CEO has been pushing the iPhone maker to venture in new categories Apple’s products and services hence the resorting to car buying and selling business venture.
This isn’t the first time Apple Company undertakes a new field of business. This follows a similar path it has taken before, to making a digital-music player or smartphone. The company wasn’t the first to, and only entered those markets once it had a product that redefined those categories. We are yet to get more surprises from the company.
