Tim Cook recently confirmed that Apple is working on “autonomous systems”—which likely include cars. I see three different ways that Apple could use an autonomous car in the marketplace.
1. As a Trojan horse to sell more iPhones. Imagine a Tesla-like Apple car seamlessly integrated with the Apple ecosystem and, thus, requiring a new-sized iPhone, or some blend of iPhone, iPad and MacBook. However, Apple is under pressure to prove that it’s more than just an iPhone company, so I imagine it will strive for more.
2. To solve a particular problem. Apple could target younger consumers and their parents (who often finance young drivers) by focusing on safety. An Apple vehicle would likely use Siri to help make driving safer. In fact, Siri combined with facial recognition could play the part of the “safe and cool” aunt or uncle—the relative who cares about you but won’t necessarily tattle to your parents about your bad behavior. Siri could track weather and traffic conditions, tell if you’re getting sleepy behind the wheel and otherwise point out hazards or distractions while urging you to be more careful.
3. To create new categories altogether. I doubt that Apple designers will see the market in traditional segments, such as small cars, luxury/sports cars, sport-utility vehicles (SUVs), trucks and minivans. I think they will see it as different use-cases for why consumers get into a car—commuting (small cars), fun toys (luxury/sports cars), useful tools (trucks, SUVs) or living rooms on wheels (minivans).
To me, the minivan is the guiding light. In 1983 the original minivan saved Chrysler from bankruptcy. I’m not a car guy, but I absolutely love our Honda Odyssey minivan. It’s perfectly designed for our family of five. But it’s also clear that the minivan concept is due for an upgrade.
After all, if you can put a living room on wheels, what else can you put on wheels? Think of the ultimate home office with printers, a desk and video conference abilities that traveling salespeople could use and avoid having to hang out at Panera or Starbucks all day. Or how about a man cave on wheels? Or a kitchen? Could Apple figure out how to do a bathroom?
Eddie Yoon is the founder of Eddie Would Grow and a director at The Cambridge Group.