Kia and Apple Collaboration To Produce Cars in 2021

While Apple mainly started as a tech company and holds around one-third of the $500bn global smartphone market, the brand is known to invest in unconventional businesses and set new trends for different industries. It has been speculated for a long time that Apple will set its foot in the automobile industry, and the speculation is now closer than ever to convert into reality.

Various news sources reveal that Apple and Hyundai-Kia are in talks to produce an Apple Branded car in the near future. A plant will be set in Georgia, where a Kia car production plant already exists.

Apple has a dedicated team of engineers working to make a model of the Apple car, which is speculated to go into production in 2024.

However, the launch can be pushed back because of several factors at play.

There’s No Agreement Signed Yet

Just to make things clear moving forward, there’s no deal signed between Apple and Kia as of now, and the whole project is still under talks. Apple is also likely to partner with multiple automakers, or other automakers by not signing the deal with Kia.

Experts say that Apple might also be talking with some other automakers. Apple has seen a 2% rise in its shares after the news of a deal with Kia went on air.

However, the spokespersons from both companies have declined to comment on this development.

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Moreover, there are many questions to be answered, like, “Why would Apple choose Kia out of all the automakers”. The possible answer to these questions is that both Apple and Kia see a unique opportunity in partnering to produce an Apple-branded car.

A Huge Opportunity For Apple

Currently, Apple has around one-third market share of the global smartphone industry, which is valued at around $500bn per annum. 

On the other hand, the global automobile industry sits at a whopping $10 trillion per annum, which is way more than the current market Apple dominates. 

Apple only needs a 2% share of the global automobile industry to equal its share value to its share in the smartphone industry.

Some credible sources tell that Apple wants to partner with an automobile manufacturer in North America, which will allow the tech giant to control both the software and hardware that will go into the Apple Car. This means that Apple wants to redefine the car instead of rebranding a Kia model as the “Apple car” only by installing the Apple software in it.

Hyundai-Kia Seems Interested As Well

The Chairman of Hyundai-Kia, Euisun Chung, is leading the talks with Apple regarding Apple Car.

The company has stated clearly that mobility is its future. That’s primarily because the Apple car will possibly be a driver-less, self-driving electric vehicle.

Kia seems interested in this joint venture with Apple, as they believe this will accelerate the automaker’s plans of making its own autonomous vehicle.

Hyundai has already started a joint venture with Aptiv to develop an autonomous vehicle and robotaxis.

The Kia plant located in Georgia has a large annual production rate that can also be easily scaled. That’s why Apple can easily start and scale the production of Apple cars in the Georgia plant.

Possible Apple Car Features

While Apple hasn’t revealed the design and features of the Apple car, many experts say that the car will have lots of unique features.

Sources say that the Apple car will be designed as a driverless, autonomous car that will be rechargeable. This means that the first Apple cars could be focused on food delivery and robotaxi type of applications.

The suggested features tell that the Apple car can set Apple against Tesla in competition.

Tesla is still rolling out some self-driving features in their new car models. Robotaxis can significantly increase both Tesla’s and Apple’s revenue, as they can keep working for more hours a day.

Let us know in the comments what you think about Apple and Kia’s collaboration to produce iCar?

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