Apple Car Hype

page 2 of 2

Apple Car Hype

If the rumors are true, Apple is working on expanding CarPlay and possibly offering other technology to auto manufacturers. Two hundred employees cannot create a car. Even if they are at the earliest design phase, two hundred employees working on “Titan” is evidence that they are not creating a car. This is total hype that has taken on a life of its own. It has made me lose faith and trust in news agencies that I once considered responsible. It seems that if the content is digital, it can be speculative and doesn’t need to be based on any facts. The Internet has descended to the lowest common denominator of dishonest, hype-mongering bloggers.

Apple Car Hype is Profitable

News agencies and publishers have a lot to gain by creating hype. If we look at the time this rumor has surfaced, it is during the slowest Internet traffic month of the year — February. Anyone who runs a website knows that February is a slow month. The holidays are over. Students are back in school. Employees are back at work. After the more relaxed months of December and early January, people are spending less time online. Digital media publishers get eyeballs on websites and videos by manufacturing hype. Unfortunately, they are rewarded for lying to the public.

Apple’s stock is one of the most valuable holdings an investor can possess. The moguls who own media companies also have a stake in Apple. Their stock is a staple of most portfolios. The hype generated by the Apple Car has caused Apple’s stock to skyrocket.

Unfortunately, the ones who created the myth may very well sell their stake before the hype bubble bursts. They will be the ones popping the hype bubble. Don’t expect to see these major digital media publishers admit they were wrong. It will be much more Orwellian. They will insist they always knew there would never be an Apple car. They may even delete any evidence that they speculated on this matter. The individual investor, relying on “news” for investment advice, will lose in the long run.

Apple Car Rumor Harms Car Manufacturers

Investors aren’t the only ones who may be harmed by false rumors of an Apple Car. This may put a dent in sales for auto manufacturers. Consumers who are considering purchasing a new car may wait. After all, they may want to see what Apple will unveil. In the meantime, they will make do with the car they have. The automotive industry is just recovering from the great recession. Reckless rumors could jeopardize their road to recovery.

An Apple Special Edition Car is Possible

Although Apple doesn’t have the expertise, capabilities or dedication to create a car of their own, the company is excellent at partnering with other ventures. “Titan” may very well be a partnership between Apple and several car manufacturers. We may see Apple editions of popular cars. This is only speculation, however, based on CarPlay and their ability to partner with other corporations (iTunes, ApplePay, Apple TV), this is far more likely than an Apple Car. When Apple has only dedicated 200 employees to “Titan”, it simply can’t be a car they build from scratch.

Apple Won’t Buy Tesla

Apple acquiring Tesla won’t help the Cupertino tech giant remain profitable. Tesla has yet to make a profit. If Apple were to acquire the car maker, it would reduce their overall profitability, which would affect their stock price.

Tesla couldn’t produce the quantity of cars that would meet the demand for an Apple Car. They are only using a fraction of the former NUMMI plant in Fremont. Unless Apple wants to make old Toyotas they need to retool and modernize the remaining factory.

Apple is sitting on a massive pile of cash, but that doesn’t mean they will spend it foolishly. It would make much more sense for them to invest in vertical integration — buy their suppliers or manufacture their own components.

Apple is Working on CarPlay

If it is true that two hundred employees are working on an automotive product, it is most likely CarPlay. Two hundred employees is not enough to build an entire car. In fact, this is a skeleton crew, even for a product like CarPlay. The problem is, CarPlay is just not sexy enough to get eyeballs on websites, videos and manipulate stock prices. Don’t believe the hype. Apple is not building a new electric car. If the rumors are true, they are not even taking CarPlay seriously. This is wild speculation with the intent of getting a few people rich. It actually hurts Apple. When the Apple Car bubble bursts, expect to see Apple’s stock price take a dive.

← prev page

Leave a comment

Your email address will not be published.