Apple Stock News
Several media outlets have reported in the last week that Apple is working to create an electric car that might be driverless, although the company has yet to confirm the reports. The stock price climbed on Friday amid rumors that the tech giant is actively recruiting automobile industry experts for work at a secret lab. Earlier this week, CEO Tim Cook announced that the automobile OS CarPlay would be a crucial technology platform for the company in the future.
An entry into the automobile market could be perfect for the company’s long-term plan, as it searches for new markets to drive revenue growth as the smartphone market slowly becomes saturated. It would further Apple’s strategy of a continuous experience, where its technology is present at all times. Apple has been successful in finding uses for its operating system in music, phones, home, and healthcare, and cars could be next.
Apple currently has a $178 billion cash pile, one of the largest among all corporations and much larger than their potential competition in the electric car market. With that much money, the tech giant will need to enter into new markets. By exploring the car, Apple is showing it can enter the industrial market and move up the value chain from consumers to big enterprise.
