For those of us looking to get the first glimpse of the Apple iCar, the wait is not long now. Since the time Apple started hiring several Tesla employees to develop an automobile, we’ve expected an announcement of the company into the car making industry! Steve Jobs had discussed the possibility of designing a car and it seems that the automobile is going to become a consumer electronics product. With the hurdle of production capability not applying in the field of automotive any longer, this indeed seems possible.
Understanding the Changing Car Market
Decades back, we wouldn’t think of cars that can run on its own. However, Apple is trying to make cars as trendy as their iPhones. What is the company is the fact that customer preferences change over time. Companies need to understand that a point has been reached where the most vital part of the value chain is no longer the actual manufacturing of the vehicle as it has now shifted to the design and software, especially with vehicle automation coming into play.
How does it work traditionally?
Most manufacturers outsource their designs while the development of automotive components is being outsourced to suppliers. When it comes to manufacturing, various popular companies have been outsourcing the manufacturing of certain vehicles to third parties and doing a good job too. Moreover, some popular brands have proved that one can print low-production-run vehicles while Tesla assured the companies that traditional dealerships are no longer required for distribution.
Foxconn had announced last year that it intends to build electric vehicles and soon became Apple’s choice as the manufacturer. Foxconn has the ability to speed up capacity and production and it is being estimated that that they will house 100,000 employees to build electric vehicles for Apple with other brands in the line-up if not Apple.
So what’s next?
It is being assumed that other consumer electric brands will soon follow suit as the automobile is being considered the ultimate consumer electronics item. With the way auto manufacturers are choosing Consumer Electronics Show as their showplace, one can expect more car launches at CeBIT and CES along with more OEMs coming out of the auto-show circuit in the future.
A world of new competitors is what the OEMs and their suppliers must prepare for as we can expect many brands to start work on vehicles in the upcoming years.
Mindinventory is a trusted mobile app development company. The expert team at mindinventory is capable of closely planning the app development process and come up with a quality app in the best price.