EV phone home?
Could smartphone giants start making electric cars?
During a recent scroll on LinkedIn, I came across one of their 'big ideas that will define 2026'. Specifically #3, which was that smartphone giants will take on the world's automakers in the EV space. It got me thinking…
It's not that strange an idea
If phone makers were to pivot into EVs, it makes sense that they'd produce them more like phones too. We already have in-car software that closely resembles the phones in our bags (think Apple Car Play and Android Auto) so is the logical next step for phone-makers to develop architecture and platforms that can power a car as well as a smartphone?
On an objective level, it makes sense. They've got reams of expertise in hardware, they know batteries, they're great at electronics. These are all things that electric vehicles are full of. The limiting factor is the understanding of car specific factors like crash safety, suspension and durability - but this could be overcome by strategic partnerships and hiring 'car people' to fill knowledge gaps and build capability. It's definitely not out of the question.
And from a manufacturing perspective, phone-makers already manufacture on a large scale and are used to managing huge factories and complex supply chains, whilst trying to squeeze costs as much as possible.
It's kind of already happening
When Xiaomi - the huge Chinese consumer electronics brand - announced they were investing $10bn into EVs in 2021 it was seen by many as a shift in the EV landscape. Some news outlets even described it as a 'major shake-up' of the sector.
They then doubled down on this shake-up by delivering almost the same volume of cars in one year as Tesla did in twelve, and undercutting the price whilst they were at it. Yes, the EV world has come a long way in terms of demand, but that's still a staggering number in a short space of time.
Then you have Apple who made a foray into car manufacturing a few years ago with their (albeit now canned) Project Titan. It may not have come to anything - yet - but it proves phone-makers are thinking about it.
So the question is why wouldn't other smartphone manufacturers want a slice of the pie?
And the other question is, what does this all really mean?
Goes without saying, but if we do start to see a surge of consumer electronics and smartphone brands vying to launch into the EV market, it'll have an impact on the industry as a whole.
As a consumer it has its positives. More choice gives you just that, more choice, and it also means that people may be able to access an EV at a price that suits their budget more easily than before. Pricing fewer people out of the market is always a plus, particularly with countries around the world setting ambitious (and rapidly approaching!) electrification targets.
As an EV maker, it's complicated. We're - naturally - coming at this from a talent angle, but the more companies working on EV tech the more people are out there with the skills companies need to meet their own production goals. But on the flipside, this also drives up competition for what can be quite a niche subset of skills, which could make it harder for companies to get the people they need. It's a bit of a double-edged sword.
Plus, more 'heritage' EV brands (if you can call them that!) may find themselves competing against car manufacturers who are household names in a different way. With the younger generations having grown up with smart phones quite literally in the palms of their hands, would we see brand loyalty shift away from traditional automakers to these newer entrants?
My prediction?
It's an interesting thought, and it's certainly something that on paper could work.
The challenge remains the same, though, for any new entrant into an EV market. And that's how they can design, build and manufacture cars that are reliable, safe, and don't cost the Earth. Whether we see smart phone tech giants join the industry or not, this is the biggest barrier all EV entrants face.
And to bring it back to talent (naturally), that challenge remains the same too. It's all about getting the right skills and experience in place against a backdrop of an incredibly competitive industry - something new entrants could both help and hinder. We'd also likely see a blurring of the lines between tech and automotive careers as EVs stop being seen as purely 'cars' and start being seen as systems and software.
We'll see what happens.
We're always up for a chat about the future of propulsion
So whether you're a car-maker looking to boost your EV engineering team, or you just want to chat about the future of the market, feel free to get in touch on chris.mapp@fmctalent.com