Building a car fits well with 'Apple's product-based business model' say Analysts

Apple had recently signalled that the iPhone maker maintains autonomous vehicle ambitions. Apple had said that it hired Jaime Waydo, previously a systems engineer at Waymo.According to various reports, Apple's electric car program called Project Titan has had some setbacks. However, company CEO Tim Cook has said it is "the mother of AI projects," and according to a New York Times report, the company is testing the self-driving software on California roads, and there are public records to prove that. Apple is also building a self-driving Volkswagen van to shuttle employees.[caption id="attachment_4633221" align="alignnone" width="1280"]

Apple Carplay. Image: Apple[/caption]According to analysts from Guggenheim, Robert Cihra and Amil Patel, even though Apple struck a deal with Volkswagen, the company might be making its own car, "because it fits in well with Apple's product-focused business model," reported Business Insider.They wrote in a note on 28 June that, not only do they "see cars representing a market that is big enough to move Apple's needle and that is undergoing technology disruption, but also one that fits well with its traditional M.O. that we characterize as – target the high end of an already large but otherwise commoditized market by; designing a better product that creams off the industry's highest-price and margin tops; and drives a self-reinforcing high-end demographic and closed-loop ecosystem."Apple is also, reportedly going to offer a subscription bundle that will include Apple TV, Music and News, as it is consolidating these various subscription-based services into one. First reported by The Information, the news was confirmed by two people familiar with the company's plans. We already know that Apple is interested in the original video content market, has set aside around $1 billion to spend on Hollywood.