I'm not sure I see that. Clearly they are good at making computer like things, but it's not like they're God's gift to supply chain management. There's been quite a few mistakes over the years. Hard to see them doing better than car companies that have been building cars for decades. I'm also not sure what Apple's edge here is. At this point all I really want out of an entertainment center is a screen for my phone to…
> Hard to see them doing better than car companies that have been building cars for decades. I'm sure Nokia had the same confidence in 2005.
A phone can be viewed as a small computer for your pocket.
If I was an Apple shareholder (I guess I am, indirectly through Berkshire), this would piss me off. Apple is in a very good business. Cars are a terrible business. Just compare Apple’s margins to any car company. Also, it’s really hard to move into a business that is widely outside your core competency. It can be done, but the effort is huge, and I suspect the median track record is poor.
Apple makes more money per unit selling an iPhone than most automakers make from selling an entire car. The auto industry has historically been a low margin, low volume, high capital investment industry with significant government subsidies.
They make money from servicing the car, which Apple is quite skilled at capturing as well..
Apple makes more money per unit selling an iPhone than most automakers make from selling an entire car. The auto industry has historically been a low margin, low volume, high capital investment industry with significant government subsidies.
They make money from servicing the car, which Apple is quite skilled at capturing as well..
Which is expected to be severely reduced with EVs unless Apple's plans are to enter the ICE market.
Despite becoming more similar in recent years, the cell phone supply chain is still very different than the automotive supply chain. The number of parts/unit differs by an order of magnitude and so does the size and weight, not to mention manufacturing techniques and materials. These are capabilities, not so much skills, and they aren't as transferable as you may think. For instance, logistically things are very diff…
The engine of my electric car has one moving part. One. Made in house from raw materials. Rolls of steel, copper, and aluminum. It’s also considered a single part for manufacturing and servicing purposes. So not simply one moving part. One part, period. >The number of parts/unit differs by an order of magnitude >car companies often rely on hundreds of suppliers See above. You must be thinking of ICE cars. >aren’t as…
The above poster was talking about the entire car not just the motor. Sure, the motor is far simpler than an ICE. But there's still a cooling system, with pumps and hoses and heat exchangers. Those are all parts. There's still seats, with sensors and motors and mounting rails. There are steering assemblies, with linkages and actuators for power steering. There's the whole infotainment system, which contains just as many parts if not more as an iPhone would have. So when comparing the idea of a car having an order of magnitude more parts and complicated supply chains its still true even with an electric car.
Would Apple be required to make their car parts interchangeable with the generic aftermarket brands and car service centers? IIRC there is a law specifically for car manufacturing. I can imagine a dystopian future with custom non-standard parts, specialist repair centers, restrictions on what you can do with it, Apple being able to track everywhere we go, what we listen to, who is with us, and establishing a network…
I can't even begin to imagine how a walled garden for a car would look like. Perhaps there are examples from already existing car manufacturers.
Try taking your non-Tesla EV to a Tesla DC charging station, or vice versa. They've finally announced a CCS1 adapter for the Korean market, but there's nothing for the US yet.
If I was an Apple shareholder (I guess I am, indirectly through Berkshire), this would piss me off. Apple is in a very good business. Cars are a terrible business. Just compare Apple’s margins to any car company. Also, it’s really hard to move into a business that is widely outside your core competency. It can be done, but the effort is huge, and I suspect the median track record is poor.
I'm a small time Apple shareholder and have the opposite reaction. Apple is sitting on 300 billion in cash - I expect them to do something with it. They need to move into some other market because their existing ones are tapped out. Cars are a great fit: 1. Big enough market for an investment of 10s of billions 2. Its international (quit a bit of that money is stuck overseas) 3. Making electric cars isn't too hard (s…
> Apple is sitting on 300 billion in cash - I expect them to do something with it.
“Do something with it” doesn’t have to be reinvesting within the company. Apple has been doing a good job returning excess cash to shareholders, spending roughly $250 billion since 2015 to reduce shares outstanding from 22 billion to 17 billion.
Despite becoming more similar in recent years, the cell phone supply chain is still very different than the automotive supply chain. The number of parts/unit differs by an order of magnitude and so does the size and weight, not to mention manufacturing techniques and materials. These are capabilities, not so much skills, and they aren't as transferable as you may think. For instance, logistically things are very diff…
The engine of my electric car has one moving part. One. Made in house from raw materials. Rolls of steel, copper, and aluminum. It’s also considered a single part for manufacturing and servicing purposes. So not simply one moving part. One part, period. >The number of parts/unit differs by an order of magnitude >car companies often rely on hundreds of suppliers See above. You must be thinking of ICE cars. >aren’t as…
If I was an Apple shareholder (I guess I am, indirectly through Berkshire), this would piss me off. Apple is in a very good business. Cars are a terrible business. Just compare Apple’s margins to any car company. Also, it’s really hard to move into a business that is widely outside your core competency. It can be done, but the effort is huge, and I suspect the median track record is poor.
I'm a small time Apple shareholder and have the opposite reaction. Apple is sitting on 300 billion in cash - I expect them to do something with it. They need to move into some other market because their existing ones are tapped out. Cars are a great fit: 1. Big enough market for an investment of 10s of billions 2. Its international (quit a bit of that money is stuck overseas) 3. Making electric cars isn't too hard (s…
> Apple is sitting on 300 billion in cash - I expect them to do something with it.
Why can't they just pay it out to shareholders and let them figure out how to invest it?
> Apple is fundamentally now a company that can move immense amounts of capital into new industries with the underlying ethos of user experience. Also: insane supply-chain management chops, a skill that is more and more transferable - especially for electric cars.
Despite becoming more similar in recent years, the cell phone supply chain is still very different than the automotive supply chain. The number of parts/unit differs by an order of magnitude and so does the size and weight, not to mention manufacturing techniques and materials. These are capabilities, not so much skills, and they aren't as transferable as you may think. For instance, logistically things are very diff…
Are you sure an EV is still that much more complex in terms of part count from a phone ? An ICE I would agree.