While Apple continues to dominate the smart phone market, as well as a number of other technology related areas, it seems to be that the first to market is not always the most successful. Apple was not necessarily first to any of the major markets which it now dominates and many experts are beginning to see a similar situation emerging in the electric vehicle market.
Tesla is by far the most technologically advanced company operating in the electric vehicle industry and where the company leads the rest seem to follow. So, could Tesla have opened the door for Apple to step in and compete on a level playing field?
Technology, technology, technology
While to many people an electric vehicle is simply a "car", the technology which goes into creating one of the most efficient vehicles in the world is immense to say the least. There is an argument that any successful technology company should be able to adapt its workforce and its investment to any area of the technology market, including electric vehicles. It is debatable as to whether it is "as easy" as some would have you believe, although there is no doubt that with billions of dollars in the bank the likes of Apple have more than enough money to make it work.
Quote from ElectricForum.com: "Who wins, 1/4 mile drag race Tesla Model S V Ferrari F 12?"
Tesla continues to push the boundaries with regards to new technology, affordable vehicles, and perhaps more importantly: performance and recharging networks.
Is the potential Apple/Tesla merger off?
Just a few days ago we covered news that Apple is in talks with BMW with regards to an electric car of the future. These talks surprised many people as it had been assumed within investment circles that eventually Apple/Tesla would merge together and use their combined wealth, experience, and expertise to dominate the electric vehicle market. Whether or not these talks with BMW are something of a "smokescreen" remains to be seen but at this moment in time it does look as if a potential Apple/Tesla merger is off the table.
Whether or not it is a coincidence that Apple appears to be looking elsewhere in the aftermath of Steve Jobs’ death and his ever growing friendship with Tesla leader Elon Musk also remains to be seen.
Mergers are inevitable
The cost of research and development in any of the major technology markets is immense, with billions of dollars placed on one side to fund what could be the next major breakthrough or a complete waste of money. As a consequence, it seems highly likely will see electric vehicle companies and technology companies merging together in the future to reduce their base costs and maximise their experiences and expertise.
It will be interesting to see whether there is any formal arrangement between BMW and Apple in the weeks, months or years ahead and whether indeed this leads to the introduction of the first electric vehicle involving Apple. However, one thing is for certain, the introduction of names such as Apple to the electric vehicle market has caught the attention of investors and given the market some much appreciated exposure.