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Scenario Analysis of Apple's Strategy to Enter the Car Industry

Scenario Analysis of Apple's Strategy to Enter the Car Industry

The autonomous, connected, electric, and shared mobility market is expected to transform mass transportation and the global automotive industry by 2030. Entry of Silicon Valley companies into the automotive industry has created a fertile ecosystem for developing cars of the future. As the infrastructure is in place, Apple could utilize this ecosystem to help establish its presence in the automotive industry.

Considering the recent hiring spree of auto experts and nearly $10 billion spent on research and development, Apple’s entry into the automotive space is expected. Apple could take a product- or a service-focused approach with Project Titan. The aim of this research is to study and analyze Apple’s automotive industry vision, corporate strategy, and investments in key areas including autonomous, electrified, and connected vehicles.

Research Scope:

Look into current and future technology focus in Silicon Valley

Understand Apple’s efforts to enter the automotive industry

Predict possible products and/or service that Apple could offer based on recent talent and company acquisitions/partnerships 

Highlight target markets along with sales and revenue numbers

Understand the impact on Apple’s existing product and service mix if it enters the automotive industry

Key Questions this Study will Answer: 

What is Apple trying to achieve by entering into the automotive space and how would it disrupt the automotive sector? 

What are the possible outcomes of Project Titan? Will Apple come out with a new product or offer software services for automotive companies? 

If Apple chooses to manufacture a product, what would it be? What are the expected sales and revenue values that Apple can expect by 2025?

What possible services can Apple offer to the automotive industry by 2021? How can Apple leverage its iPhone customer base to gain popularity for its automotive services?

What are Frost & Sullivan’s three main predictions with regards to Project Titan and what is the rationale behind these predictions?

Apple’s entry into the automotive industry will help it complete its ecosystem comprising devices-software, cloud storage, and home kit thereby offering seamless access to personal data both at home and on the move.  Ultimately, Apple is expected to have a prominent presence in the automotive space by 2021, either as an automotive manufacturer or as a service provider—possible scenarios for each are outlined in this research.

Scenario 1: Apple Car—Autonomous Electric (including car features, product strategy, revenue projections, manufacturing plans, retailing, retail locations, and challenges)

Scenario 2: Apple as Service/Connected Car/Autonomous Driving Solution Provider (including in-house talent (software); acquisitions, partnerships, investments; CarPlay+ offerings, features, adoption, revenue projections; “iBrain” hardware kit with projected revenue and challenges)


1. Executive Summary
Executive Summary
Executive Summary—Key Findings
Executive Summary—Apple as a Car Manufacturer
Executive Summary—Apple as a Service Provider
Executive Summary—Future Outlook
2. Research Scope and Methodology
Research Scope and Methodology
Research Scope
Research Aims and Objectives
Key Questions this Study will Answer
Research Background
Research Methodology
3. Segmentation
Segmentation
Vehicle Segmentation
4. An Introduction to Apple’s Automotive Footprint
An Introduction to Apple’s Automotive Footprint
Silicon Valley—Automotive Technology Evolution Snapshot
An Introduction to Apple’s Automotive Offerings—Current and Future
Apple’s Automotive Ambition—Rationale
Sales and Margin Figures
Apple Car—Possible Business Scenarios towards Auto Industry Debut
5. Scenario 1—The Apple Car: Autonomous Electric
Scenario 1—The Apple Car: Autonomous Electric
Scenario 1—Apple Auto Industry Debut: A Timeline of Recent Activities
Scenario 1—Mapping Project Titan with In-house Talent
Scenario 1—The Apple Car: Product Concept
Scenario 1—Apple Car: Features
Scenario 1—Apple Car: Pricing Strategy
Scenario 1—Apple Car: Revenue Projections
Scenario 1—Apple Car: Automotive Manufacturing Plans
Scenario 1—Future Potential Apple Car Retailing Scenarios
Scenario 1—Apple Car: Retail Locations
Scenario 1—Apple Car: Challenges
Scenario 1—Summary of Apple’s Product Focus
6. Scenario 2—Apple as a Solution Provider
Scenario 2—Apple as a Solution Provider
Scenario 2—Mapping Project Titan with In-house Talent (Software)
Scenario 2—Recent Acquisitions, Partnerships, and Investments
Scenario 2—Recent Automotive Software Related Patent Publication
Scenario 2—Apple Automotive Software Focus—Beyond CarPlay
7. Scenario 2 (a)—Apple as a Connected Car Solution Provider
Scenario 2 (a)—Apple as a Connected Car Solution Provider
Scenario 2 (a)—CarPlay+: Advanced Connected Car Solution
Scenario 2 (a)—CarPlay+: Offerings and Features
Scenario 2 (a)—Adoption Rate of Apple CarPlay+
Scenario 2 (a)—Projected Revenue from CarPlay+
8. Scenario 2 (b)—Apple as an Autonomous Driving Solution Provider
Scenario 2 (b)—Apple as an Autonomous Driving Solution Provider
Scenario 2 (b)—Apple as an Autonomous Driving Solution Provider
Scenario 2 (b)—Apple “iBrain” Kit: Some Wild Speculations
Scenario 2 (b)—iBrain: Projected Revenue and Challenges
9. Scenario 2 (c)—Apple as a Shared Mobility Solution Provider
Scenario 2 (c)—Apple as a Shared Mobility Solution Provider
Scenario 2 (b)—Apple as a Shared Mobility Solution Provider
Scenario 2 (c)—Autonomous Vehicles for Shared Mobility
Scenario 2—Summary of Apple’s Service Focus
10. Research Takeaways
Research Takeaways
Research Takeaways
Impact of Apple on Auto Industry
The Last Word—3 Big Predictions
Legal Disclaimer
11. Appendix
Appendix
Apple Auto Industry Debut: A Timeline of Recent Activities—Sources
Acronyms
Learn More—Next Steps
Market Engineering Methodology

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