Copyright © BusinessAMBE 2023

For some tech giants, the market for smartphones, PCs and other portable devices is too small. Chinese manufacturers Huawei and Xiaomi have their eye on the electric car market and would not be the only ones. The persistent rumor is that Apple is also considering taking the plunge.

The analysis: The Cupertino-based company could use the experiences of Huawei and Xiaomi in the electric car market to adapt its own plans and make an Apple Car a success.

  • Huawei has already developed several vehicles under the "Avatr" name, in cooperation with automaker Changan Automobile and China's market leader in batteries, CATL.
  • Xiaomi is about to unveil its first bolide for commercial sale in the first quarter of 2024.

Weakness: Making a leap into the car market is quite a gamble for smartphone manufacturers. Because while candidates like Huawei and Xiaomi offer a wide range of technology products - tablets, PCs, earphones, watches, as well as a rice cooker - they don't have much in common with cars.

Strength: But that doesn't mean they have nothing in common. Electric cars offer a range of connected features that can also be found on smartphones.

  • These include Wi-Fi and Bluetooth connectivity, built-in operating systems, software for sharing and pairing with various devices and monitoring technologies. Aspects where smartphone manufacturers can make a difference compared to "real" car manufacturers, such as BYD or Tesla, the market leaders. Because they have an "edge."
  • Therefore, Apple might do well to use the cases of Huawei and Xiaomi as "crash tests" before launching its electric car, rather than trying to match Tesla's performance.

Full-fledged manufacturer or collaboration?

Zoomed in: To gain a leading position in the electric car market - a market flooded with new players - new entrants with no real experience must make smart choices and alliances.

  • Huawei does not want to become a full-fledged car manufacturer. The Chinese brand prefers to act as a developer and supplier of specialized automotive technologies in terms of operating systems, software and driving assistance functions. Therefore, it collaborates with several "real" Chinese automakers to develop its cars.
  • Xiaomi' s position is quite similar. The Chinese brand is used to putting its name on products developed by other companies. It may very well continue down this path with cars. By the way, its first model will be built by BAIC Motor Corp and not by Xiaomi itself.
  • So in effect, the two Chinese manufacturers are giving new names to cars developed by traditional automakers.

Apple's secret plans

The speculation: Last year, rumors suggested that Apple would take a similar position. The Cupertino-based company was said to have been in contact with Hyundai and Kia, but no deal was ultimately reached, partly because of these leaks.

  • Apple would insist on overseeing everything related to its car's software and connected features. Let's not forget that the company has some experience with remote sensors, the famous LiDAR.
  • But it could also decide to manufacture the car itself. An even bigger gamble. In either case, Apple should closely follow the success of Huawei and Xiaomi's cars, both in terms of sales figures and customer feedback.
  • If the Chinese manufacturers have success in their new fields, Apple could draw inspiration from them. Otherwise, the technology company can always rely on its reputation, excellent supplier relationships and craftsmanship to make this gamble a success.

© The Content Exchange, source News