Apple’s current business model focuses on the task of bringing fast, new technology to the homes of every individual. Primarily known for their production of computers and smart phones, Apple is redirecting their efforts into creating a smart car. By joining the automotive industry, Apple is taking an extremely large risk. Devices like iPhones, which have proven to be hugely successful, will be getting less attention from the company, possibly resulting in a drop in sales.
In a way, Apple almost didn’t even change their actual business model. I believe the company’s strategy can be defined as a differentiation strategy; most of their efforts are allocated towards product uniqueness. Since Apple is expanding into the car industry, this fits the same strategy. Although they are creating an entirely different product, their motivation is driven by the same creative force that brought smart phones to where they are today.
Apple does face competition however. Companies like Google are already in the process of making their own cars, equipped with unique features that could potentially outsell Apples model. Apple announced the car to make it’s debut in 2019, and we are all excited to see how it turns out.
-Timmy
Reference: From iPhones to iCars