Apple Car – Connecting the dots…Updated

Apple Car – Connecting the dots…Updated

The much rumored Apple car is here folks!! An autonomous transport vehicle system rather than a personal passenger car?

https://www.motorauthority.com/news/1131142_first-apple-car-reportedly-designed-to-skip-the-driver

Makes sense since in the future, which has arrived due to 2020 reset, personal vehicles parked most of the time doesn’t make sense. If it is an autonomous vehicle, even more so. It needs to be out there generating revenue for someone.

Apple partnering with Hyundai Kia to manufacture the car similar to what they do with iPhone where the manufacturer is Foxconn – a contract manufacturer.

Hyundai meanwhile has adopted Canoo’s EV platform:

https://www.motortrend.com/news/canoo-electric-skateboard-platform-hyundai-kia/

Canoo’s software platform is Blackberry QNX software architecture for safety and security:

https://blogs.blackberry.com/en/2020/08/blackberry-to-power-autonomy-systems-in-canoo-next-generation-electric-vehicles

QNX is the only RTOS that has the ISO 26162 ASIL D certification which most likely will be a regulatory requirement soon for all connected vehicles with OTA and some form of autonomous system.

Hyundai’s other vehicles also use Blackberry QNX now:

https://www.blackberry.com/us/en/company/newsroom/press-releases/2019/hyundai-autron-selects-blackberry-qnx-to-power-next-generation-adas-and-autonomous-driving-software-platform

Here is the kicker, Canoo platform is designed to be a subscription model for a lifestyle!!

https://www.canoo.com/

Subscription model probably makes perfect sense here for the next generation and new reality of the 21st century economy. Ownership model of a personal vehicle will probably be obsolete soon.

Last, but not least, Apple is rumored to have setup a Software development center in Canada right next to Blackberry HQ and hired QNX engineers to develop this car. This has been going on for several years. They pivoted couple of times.

This is most likely a collaborative effort and not an attempt by Apple to usurp the patented QNX algorithms and development process. Blackberry has also developed tools like Jarvis for automated software testing, functional safety analysis and integrated the Cylance AI into the QNX RTOS for real-time threat monitoring and proactive mitigation which most likely will be a subscription service. There is also the matter of QNX RTOS safety certification mentioned above.

It is all coming together now.

 

Report: Apple continues hiring from BlackBerry’s QNX team for Canadian R&D office developing car software

This is really brilliant. Skate to where the puck is going….

Check back for updates.

Macrumors post:

https://www.macrumors.com/roundup/apple-car/

Update February 8, 2021:

Hyundai denies Apple Autonomous car  venture:

https://www.reuters.com/article/us-autos-tech-apple-hyundai-motor-idUSKBN2A800T

It appears the push back is on being a contract manufacturer? The original speculation wasn’t about building an Autonomous car. Apple is most likely in talks with several manufacturers about contract manufacturing. Magna does this for BMW for example.

Update February 15, 2021

Nissan discussions ran into Same issue as Hyundai?

https://www.motor1.com/news/488046/apple-car-not-made-by-nissan/

Apple might end up emulating Dyson’s strategy. Dyson was on the right track before abandoning it due to capital requirements most likely.

https://www.dyson.com/newsroom/overview/features/june-2020/dyson-battery-electric-vehicle

The problem in automotive sector is that it is highly capital intensive business and margins are low.

A conundrum for tech companies with high margins. Apple however, could pull this off since they have access to cheap capital.

Tesla appears to have done the reverse. Capital after the fact from selling stock!! Is it sustainable though? Will the software and services margins really come to fruition?

They key ingredient and enabler for all this is safe and secure software.

Disclosure: Long $BB 10 year horizon.

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