Apple is notorious for keeping its secrets well-hidden, but for whatever set of reasons it’s been leaking out some details about its upcoming electric car. The vehicle, which internally is reportedly called “Project Titan,” apparently has a target launch date of sometime in 2019. That’s not too far off, but so far nobody has even the faintest idea of what this car will look like. Despite that fact, critics are already dog-piling on Apple, declaring loudly that Titan is a failure.
It might seem premature to be making such predictions, because it really is, but that isn’t stopping the likes of Bob Lutz from taking some shots at the yet-to-be-revealed vehicle. Anyone who is surprised that Lutz isn’t a fan of Apple jumping into the automotive business doesn’t know anything about the man. Still, that doesn’t mean the guy doesn’t have any valid points.
During a CNBC interview, Lutz brought up a few reasons why he thinks Apple is about to lose a bunch of money. He pointed out that electric cars are still very much on the fringe of the industry, thanks to their lack of profitability. Numerous auto CEOs have confirmed that EVs are money losers right now, mostly because they require a huge investment in R&D. That fact will likely change in the near future, but Lutz doesn’t think Apple will be making the breakthrough that changes everything.
The biggest thing that makes electric cars unprofitable is battery technology, and Lutz pointed out that Apple isn’t a leader in that area. He also noted that Apple has a business model that operates well with big profit margins (which is why the iPhones are all so expensive) while cars notoriously have very narrow margins.
So there you go, already there are naysayers lining up and declaring that Apple will see a huge flop with its car. When Titan finally reaches the market, it will have quite a bit of competition, considering that the Tesla Model 3 and a number of other electric vehicles are supposed to be ready by then.