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Apple to join the fiercely competitive race to design Self-driving Cars

The California Department of Motor Vehicles had awarded a permit for the company to start testing its self-driving car technology on public roads in the state.

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The Apple logo is shown above a store location entrance, Thursday, Sept. 19, 2013, in Dallas. Apple is schedule to release their iPhone 5S on Friday. (AP Photo/Tony Gutierrez), VOA
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San Francisco, April 15, 2017: Apple is joining the fiercely competitive race to design self-driving cars, raising the possibility that a company that has already re-shaped culture with its iPhone may try to transform transportation, too.

Ending years of speculation, Apple’s late entry into a crowded field was made official Friday with the disclosure that the California Department of Motor Vehicles had awarded a permit for the company to start testing its self-driving car technology on public roads in the state.

The permit covers three vehicles — all 2015 Lexus RX 450h hybrid SUVs — and six individual drivers. California law requires people to be in a self-driving car who can take control if something goes wrong.

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Apple Goes Mobile … In a New Way

Apple confirmed its arrival in the self-driving car market, but wouldn’t discuss its intentions. Its interest in autonomous vehicle technology, however, has long been clear .

The Cupertino, California, company pointed to a statement that it issued in December. “Apple is investing heavily in machine learning and autonomous systems,” the company said then. “There are many potential applications for these technologies, including the future of transportation.”

Apple released that statement after Steve Kenner, a former Ford Motor executive who is now Apple’s director of product integrity, notified federal regulators of the company’s interest in self-driving cars in a letter.

Like others, Apple believes self-driving cars could ease congestion and save millions of people who die annually in traffic accidents often caused by drunk or distracted motorists.

Self-driving cars could also be a lucrative new market. And Apple has been searching for its next act for a while, one that will take it beyond its mainstay phones, tablets and personal computers.

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A Next Big Thing

Although iPhone’s ongoing popularity has helped Apple remain the world’s most valuable company, the company hasn’t had a breakthrough product since the 2010 debut of the iPad, currently in the throes of a three-year sales slump. The dry spell has raised doubts as to whether Apple lost some of its trend-setting magic with the death of co-founder Steve Jobs in 2011.

Apple will be vying against 29 other companies that already have California permits to test self-driving cars. The list includes major automakers, including Ford, General Motors, BMW, Volkswagen and Tesla, as well as one of its biggest rivals in technology, Google, whose testing of self-driving cars has been spun off into an affiliate called Waymo.

Since Google began its work on self-driving vehicles eight years ago, Waymo’s fleet of self-driving cars has logged more than 2 million miles on the road.

That means Apple has a long way to catch up in self-driving technology. But it has often been a follower in markets that it eventually revolutionized. It wasn’t the first to introduce a digital music player, smartphone, or tablet before its iPod, iPhone and iPad came out.

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Deep Pockets

With $246 billion in cash, Apple also could easily afford to buy technology that accelerates its development of self-driving cars. There has been recurring speculation that Apple might eventually acquire Tesla, which has a market value of about $50 billion. Neither Apple nor Tesla has given any inkling that they’re interested in joining forces, though.

Speculation about Apple’s interest in expanding into automobiles began swirling in 2015 amid media reports that the company had begun secretly working on building its own electric car under the name project “Titan.” Apple never confirmed the existence of Titan, which is now believed to be dead. (VOA)

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Apple Expands Its Campus to Austin, East and West U.S.

The infusion of thousands of new and highly paid residents can ripple through an economy

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Apple, Campus
A customer is entering the Apple store in Fairfax, Virginia. VOA

Apple will build a $1 billion campus in Austin, Texas, break ground on smaller locations in Seattle, San Diego and Culver City, California, and over the next three years expand in Pittsburgh, New York and Colorado.

The tech giant said Thursday that the new campus in Austin, less than a mile from existing Apple facilities, will open with 5,000 positions in engineering, research and development, operations, finance, sales, and customer support. The site, according to Apple, will have the capacity to eventually accommodate 15,000 employees.

The three other new locations will have more than 1,000 employees each.

Early this year, Apple said that it would make more than $30 billion in capital expenditures in the U.S. over the next five years. That, the company said in January, would create more than 20,000 new jobs at existing and new campuses that Apple planned to build.

Apple, Campus, Tim cook
Apple CEO Tim Cook speaks during an event to announce new products, Oct. 30, 2018, in the Brooklyn borough of New York. VOA 

Where U.S. companies open new facilities or plants has always had the potential for public and political backlash.

That potential has intensified under the Trump administration, which has pushed companies to keep more of their operations inside the country’s borders.

While CEO Tim Cook has steered mostly clear President Donald Trump’s ire, Apple did receive some push back three months ago from the White House.

Apple sent a letter to the U.S. trade representative warning that the burgeoning trade war with China and rising tariffs could force higher prices for U.S. consumers.

Trump in a tweet told Apple to start making its products in the U.S., and not China.

Apple uses a lot of facilities overseas to produce components and its products, including China.

Apple, Tim Cook, Campus
A guest looks at the Touch Bar on a MacBook computer shown in a demo room following the announcement of new products at Apple headquarters, in Cupertino, California. VOA

Top tech executives from Google, Microsoft, IBM, Oracle and Qualcomm gathered at the White House earlier this month to discuss strained ties between the administration and the industry, and trade tensions with China. Cook was not among them, nor was Amazon’s Jeff Bezos.

There are already 6,000 Apple employees in Austin, its largest operation outside of company headquarters in Cupertino, California, where 37,000 people are employed.

“Apple has been a vital part of the Austin community for a quarter century, and we are thrilled that they are deepening their investment in our people and the city we love,” said Austin Mayor Steve Adler in a prepared statement Thursday.

Apple said nearly a year ago that it would begin canvassing the U.S. for another campus.

Cities offered incentives to lure the company, but Cook avoided a high-profile competition that pitted them against one another as Amazon did over the last year and a half.

Apple, Tim Cook, Campus
iPhone 8 was also launched with a special edition red colour, Pixabay

Amazon, too, expands

Amazon announced in November after a 14-month search it had selected Long Island City, Queens, and Arlington, Virginia, as the joint winners. Each site will employ around 25,000 people.

Cities are eager to bring in more tech employers because companies like Apple and Amazon ladle out six-figure salaries to engineers and other skilled workers.

Also Read: China Bans iPhone Sales Due to Patent Dispute

The infusion of thousands of new and highly paid residents can ripple through an economy, with those employees filling restaurants, theaters, buying property and paying taxes.

Annual pay will vary at the new locations, but Apple workers in Cupertino have an average annual salary of about $125,000, according to a report the company submitted to the city. (VOA)