Apple is already positioned to be a car company in many ways

Apple “has put a few hundred employees to work on a secretive project to develop an electric automobile, a person familiar with the matter has said,” Tim Higgins reports for Bloomberg News. “While Apple often tests ideas that don’t get released, the work underscores the company’s long-held desire to play a greater role in the automotive space, which is ripe for more of a merging with users’ digital lives.”

Higgins reports, ““’It makes a ton of sense,’ Gene Munster, an analyst with Piper Jaffray Cos., said Saturday in an interview. ‘If you would’ve said 10 years ago, ‘Apple is going to be in the car business,’ I think people would’ve said you’re crazy — because it would’ve been crazy — and today it’s a much different company that’s able to tackle these massive addressable markets.’ …He added that he doesn’t think Apple would bring out a car in the next five years.”

Apple’s strengths as a potential automaker include:
1. $178 billion war chest
2. The car is the ultimate mobile device
3. A unique mix of executives with tech and auto experience
4. Worldwide retail network
5. Ability to navigate those global operations

Read more in the full article here.

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Washington’s Farewell Address, September 19, 1796

28 Comments

  1. When I can pull my iPhone from my pocket, stand on it, and have it take me to work (either hoverboard style or teleport), I’ll than admit that it is the ultimate mobile tech. 🙂

  2. Apple eating the world… Japan (iPod/walkman), Finland/Canada/USA (iPhone/Nokia/BB,Moto..), Switzerland (Apple watch/Rolex), now Germany (Porsche/Mecedes/BMW). yummy

  3. Another reason for Apple to do a car is the same reason they had for doing iPod and iPhone – no one was doing it well. That is, the software in most vehicles is PITIFUL and user-unfriendly. At the very least, it should be upgradeable in a simple way. It’s almost as bad as the website software of most banks.

    1. And its a time for a new wave of electric vehicles. Clearly that is the future, but so far only Tesla has (successfully) bet everything on that future.

      A lot of assumptions and skills of current automakers are losing their value by the minute.

    1. You are probably correct. However, it’s a sad reminder that Cook is slow to get serious about this stuff. Shouldn’t Timmy have started that >4 years ago?

      Apple will never manufacture cars. Why would they? There’s not enough profit margin there. Tesla loses money and probably will never do much more than break even. Conventional automakers take less than a 10% markup. Apple prefers to make products in China and slap on a >40% markup to pay for Cook’s fiddling in gay pride events, ring offices, iCloud Beats, and cowtowing to Wall Street’s extorsions as the usability of Apple’s operating systems burns.

  4. Number 6.: The numerous media reports and articles referring to “unnamed sources”, “people familiar with the matter” and of course Gene Muster.

    It’s a lose lose situation. If Apple is indeed building a care the jouranalists and analysts will take credit for guiding Apple. If Apple is indeed not building a car then the media will write how disappointing it is and bring the stock down.

    Everyone loses, but hey, that’s to be expected from a country that has now lost it’s way, and the moral high ground.

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