“Google has multiple points of entry into the auto industry including maps, self-driving algorithms, operating system software and applications. Apple has distinguished itself mainly as a hardware and design company while redefining mobile device interfaces,” Roger Lanctot wonders for Strategy Analytics. “Apple could make a car or Apple could hire an ODM (like Magna Steyr) to make a car. Or Apple could buy BMW. Seriously.”
“BMW is not a random example of a car company, any car company, as a suitable acquisition target for Apple. An acquisition of a car company will enable Apple to have an immediate impact, and BMW is the most appropriate acquisition target given the extraordinary alignment between BMW and iPhone ownership,” Lanctot writes. “Additionally, the automotive industry globally is plagued by over-capacity or misaligned capacity. Apple’s CEO, Tim Cook, is most likely disinterested in adding yet more excess capacity with all of the associated negative environmental impacts. Tapping an ODM such as Magna Steyr as a manufacturing partner, though a relatively rapid and reliable point of market entry, is limited by Magna Steyr’s existing capacity and commitments. In contrast, BMW is expected to see compound annual production growth of 4.2% through 2022, based on estimates from LMC Automotive.”
“This growth – which puts BMW on a path to produce nearly 3M cars in 2022 – is an appealing prospect for Apple as is BMW’s philosophy of vehicle connectivity. BMW has one of the most advanced visions of vehicle connectivity for data acquisition and integration into the car owning experience and for the purposes of enhancing vehicle contextual awareness, safety and efficiency,” Lanctot writes. “Even if Apple has downshifted in its plans to build a car it could still target regional markets outside the U.S. where enthusiasm for cars is still on the rise – places like China, India, and Brazil.”
Read more in the full article here.
MacDailyNews Take: That would be some massive acquisition. BMW currently has a market value of $48.9 billion.
Hey, Wall Street seems to love “moonshots,” right? 😉
Regardless, as we wrote back in March:”When Apple enters markets, it’s because they can bring something(s) so unique to the table that significant disruption is inevitable.”
It goes without saying that Apple would create a premium vehicle, premium-priced for premium customers as usual, not a some low-end crate. — MacDailyNews, September 21, 2015
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Apple’s visit to BMW factory fuels further rumours of possible partnership – August 3, 2015
Apple, BMW flirting with an eye on car collaboration – July 31, 2015
Apple said to be in talks to use BMW i3 carbon fiber body as basis for its own electric car – July 27, 2015
BMW: Our talks with Apple don’t involve developing or building a car – March 5, 2015