Apple Inc (NASDAQ:AAPL) proceeds with its long-drawn plans to introduce Apple Car by the year 2024. According to analysts of Wallstreet, Tim Cook, CEO of Apple, will be unable to launch the vehicle production and the chances are between 35% and 40%.
Battery technology upgrade to cause a delay
According to Wedbush Securities analyst, Dan Ives factors such as battery upgrade, safety issues, regulatory hurdles, and auto production capabilities expect to delay Apple’s ambition to unveil the standalone car by 2024.
Short ways to gain entry into the market
Apple could gain entry into the market faster with its standalone product by pursuing strategic alliances with established players such as Tesla or Volkswagen. Elon Musk, CEO of Tesla, approached Apple in 2017 to divest EV business when it struggled financially.
Rod Hall, an analyst at Goldman Sachs, Apple could consider the option of service provider role to realize its ambition much like it did when launching the television. According to Hall, tech companies want an entry in auto because consumers will spend a lot of time in self-driving vehicles with the help of information provided by them.
The demand for electric vehicles expects to reach $1 trillion in the next ten years. Despite lower margins, it will provide massive opportunities for companies. Therefore, Apple will take the role of the service provider to get a larger pie of the EV business.
Apple supports app developers with a lower commission fee
Apple collects a lower commission fee from some of SBP (small business participants). It charges half the store commission fee for developers, who earn an income of less than $1 million annually, beginning November 2020.
The App developers will need to pay just a 15% fee for in-app purchases and sales compared to the existing 30%. Apple started accepting new enrollees in December 2020 and expects to kick up early next year.
Jacob Gorba, the Apparent Software founder, and other participants confirmed that the reduced commission fee is now in effect. Apple decided to charge a lower commission fee after several companies voiced their concern about a higher commission of 30%. Social media giant, Facebook criticized Apple for not lowering the commission for its Facebook Pay.