According to reports from the Financial Times, Apple Inc. (NASDAQ:AAPL) could be close to making a big splash in the automotive sector.
The tech giant is reportedly in talks with McLaren, the British designer and manufacturer of high-end supercars, about either a partnership or full takeover.
Apple has been rumored to be interested in expanding into the auto industry for years now. The company even went as far as hiring thousands of engineers and renting office space away from its main headquarters, essentially setting up a secret auto division. It was among the worst-kept secrets in all of Silicon Valley.
Apple is attracted to McLaren for a number of reasons. It likes the company’s high-end brand, it’s technology and patents, and its staff of some of the best auto engineers out there. It’s also likely attracted to McLaren’s Formula 1 presence, which will give it a very convenient platform to show off a new Apple Car.
The potential purchase price is unknown, but the Financial Times speculates McLaren could be worth between US$1.3 and US$2 billion. It currently doesn’t make a profit, but that doesn’t appear to be much of a concern for Apple. It can easily subsidize such an operation.
The implications of this move are obvious. Apple is very serious about expanding into the auto market, and is willing to invest billions into it happening.
Tech Insider
