Apple is definitely going to build cars?

The more interesting question should be, “Is Apple is definitely going to build actual cars for consumers to buy?” My take on this will be a “no”.

Here is Horace Dediu’s The Entrant’s Guide to The Automobile Industry. He wrote some very important observations on why the bar for a new entrant to the car manufacturing and sale industry is very high, especially with regard to succeeding with disruptive innovations.

There have been many media and the blogosphere’s comments that Apple is going to build a car. These has become strident when it was revealed that Apple has been employing many experts who are in the car manufacturing industry: drivetrain engineers, battery specialists, automotive safety systems experts, etc.

But wait, even if the skunkworks team at Apple is building an electric car, it is a long hop to actually manufacturing and selling cars to consumers. I bet that the team is building a car to develop car-related technologies so that Apple can sell to the car industry. Think about it: Apple entering in a big way selling products to the 2 trillions $ car manufacturing enterprise market (not consumers).

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