Self-driving cars:
Apple joins about 30 other companies authorized by the state of California to test autonomous vehicles.
An Apple self-driving car may soon hit the road in California.
The Cupertino tech giant joins about 30 other companies authorized by the Department of Motor Vehicles to test autonomous vehicles. Apple’s permit covers three 2015 Lexus RX 450H SUVs and six drivers, according to the DMV.
Apple, along with major carmakers like BMW, Tesla, Honda and Ford, and tech companies like Alphabet’s Waymo, now can operate cars in autonomous mode in California as long as a backup driver can take the wheel. It will be required to provide annual reports on “disengagements” — times when the driver had to take control of the car.
In December, Apple provided the strongest confirmation of its interest in the burgeoning field of autonomous cars when it wrote to the National Highway Traffic Safety Administration that it is “investing heavily in the study
of machine learning and automation, and is excited about the potential of automated systems in many areas, including transportation.” The letter came from Steven Kenner, Apple’s head of product integrity, who previously worked at Ford Motor Co. as global director of automotive safety.
On Friday, Apple pointed to that communication in responding to request for comment on its self-driving program.
Apple spokesman Tom Neumayr said in an email that the company provided comments to the federal agency because it is “investing heavily in machine learning and autonomous systems.”
“There are many potential applications for these technologies, including the future of transportation,” he said, so the company wants to work with the safety agency “to help define the best practices for the industry.”
Code-named Project Titan, Apple’s secretive car project has been the subject of rumors and speculation for years. The company reportedly started with the goal of developing an electric car to rival Tesla’s, but press reports last year said that it laid off 1,000 people and switched to working on self-driving software.
“The plot thickens,” said Gene Munster, managing partner at Loup Ventures. “I think Apple wants to build an entire car. They’re moving toward it. But they’re only 5 percent of the way there and may not be able to do it.”
While controlling both the hardware and software “is in Apple’s DNA and is hard to break away from,” the formidable challenge of manufacturing automobiles could force Apple into working with existing car companies, he said.
“I’m highly skeptical that Apple is actually doing a branded car,” said Tim Bajarin, principal of tech analysis firm Creative Strategies. “The auto industry has much more of a skill set to create and manufacture automobiles in the volumes that are important.”
However, he said, Apple’s software skills could underpin a system that carmakers would install. “Silicon Valley is a hotbed for providing the technology that the auto companies need to make and manufacture self-driving cars,” he said. “Think of a car as another server; an end point for (Apple’s mobile software). Apple’s in a position to create a car operating system and interface of real interest to the car makers.”
Pat Moorhead, principal analyst at Moor Insights & Strategy, said Apple can overcome its lack of manufacturing experience by acquiring a automaker. “They have about $250 billion in cash, so could pretty much buy half the auto industry,” he said. Tesla and General Motors, the most valuable U.S. carmakers, are each worth about $50 billion.
He would expect Apple to opt for a high-end car maker like Britain’s Land Rover or Jaguar, both now owned by India’s Tata Motors. In the fall, Apple reportedly considered buying Britain’s McLaren Technology Group, which makes racing cars and has deep expertise with sensors.
While making tires, chassis and engines would require a steep learning curve, once cars become fully self-driving, Apple’s vaunted industrial design could leap to the fore, Moorhead said. “Our vehicles will become living rooms, offices, bedrooms,” he said. “Apple’s knack for nailing the user experience would be fantastic there.”