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Why is Apple making a car?
There are a lot of rumors on Apple secretly building their car(Here's one of the most comprehensive articles compiling and confirming most of them: Apple Car Roundup). For long, I have wondered what is the whole point of Apple trying to build a car. Now whether it is a full fledged "Apple car" or a software platform for cars, is not clear. Nevertheless before I break it down, there was a recent announcement from Sony and Honda that led me to understanding this a bit more.I see two macro trends at play with the Sony-Honda Collab:
The ecosystem play. Sony has said that they will allow playstation games in the infotainment of the vehicles. This is the ecosystem offering that is unique to Sony. They own the playstation and all related IP. And that will always be their unique selling proposition.
Consumer tech wanting in on the auto industry. And I think this has to do with the fact the assumption is, in the next decade most vehicles will become more autonomous. Then a new use-case emerges for consumer tech that is in-vehicle entertainment. There is some potential attention void to be filled and tech companies are racing to fill that future void.
Now, coming back to Apple. I would break down motives of Apple as a consumer tech company into 2:
The outer motive: Apple want to make well-designed hardware and software to give their users delightful experiences but at the same time be highly useful tools for both creatives and professionals.
The inner motive: Apple wants to be everywhere. They want to know how much you sleep, how your heart rate is doing, where you are eating, who you are hanging out with. They want to be the ultimate tech companion for everyone.
Now there is a big piece of a person's day-to-day life that Apple have a limited presence, and that is when they are driving or in a car. They are trying to bridge that gap with Apple CarPlay, but that solution is not end-to-end like all other Apple experiences. And given that most people are fully immersed in driving, there isn't much of a gap there anyways. Unless, cars become autonomous in the future. That would open up an opportunity that does not exist today. And imagine this scenario, if a consumer could choose the ecosystem of the vehicle they are going to buy, why wouldn't they choose something within the Apple eco-system if they are already in it anyways. Both the reasons that apply for the Sony-Honda Collab also applies to Apple and most tech companies wanting to get a piece of the automotive business.