According to Reuters, Apple (AAPL) is aiming to begin production of a self-driving vehicle before 2024. These efforts draw on “Project Titan”, Apple’s first move in the auto industry in 2014. The key advantage of the iPhone producer is claimed to be its new battery technology, enabling it to produce car batteries for greater reach at lower costs.
Next to the revolutionary battery technology, Apple is leading in market segments important for autonomous driving, including Semiconductors, Monitors, Cameras and Sensors. For instance the use of lidar sensors for environment scanning, deemed highly important for self-driving by traditional automakers, but disregarded by Tesla.
Although the company possesses vast resources and top-quality talent, a move into the car industry poses a great challenge to Apple’s Supply Chain. Moreover, the scope of the project is still unclear. Instead of publishing a self-branded car, Apple might also develop an integrated autonomous driving system for other manufacturers or partner up with particular industry giants.
The market has reacted positively to the news. Apple’s Stock rose over 2%, and share prices of EV manufacturers fell.