Apple, BMW Could Resume Talks Over Possible Apple Car Partnership 'At a Later Stage'

[Lazy]

I just can't imagine Apple entering such a low-margin business like automotive.

Apple's car wouldn't be low margin. 🙂 Naturally they'd only make nicer cars, say like BMW for example. The profit on those is much higher than on mainstream and low end models.

But it does seem implausible that they could charge significantly more for a car than the high end competition, so then how would they make it better and reasonably profitable at a competitive price? That's the key to whether they will or won't.

The other thing to remember is that while the profit margin on a car is a lot less than on what Apple makes now, if they made $10k per car and sold hundreds of thousands that still adds up to a lot of real money.

 

[joejoejoe]

I still don’t see why Apple is even interested in that market. What is so interesting about it?

opportunity to change peoples' daily lives

 

[Rogifan]

I'm not sure what Apple can bring to the table here, except for a design process that works and excellent manufacturing skills. Can they make a better car? Maybe.

Tesla has shown that it's possible for totally new entrants in the car market to succeed...assuming that the metrics for success don't include making money.

The fact is car companies aren't rushing to let Apple or Google take over their dashboards. In fact we just got news that Toyota will be using Telenav for GPS and phone connectivity. I believe Ford is going their own way too. CarPlay right now is like the Motorola ROKR.

http://www.autonews.com/article/201...le-google-at-bay-with-telenav-navigation-deal

The other thing is Apple is now a $200B company. What comes after iPhone to provide revenue growth? $99 Apple TVs and $349 Apple Watches? I don't think so. What's the big revenue growth driver for Apple in the future? It won't be iPhone forever.

 

[BornAgainMac]

I would prefer to see Apple get into Robotics in the home/office for 2020 and beyond. That will be a huge market compared to the watch. I understand the car will be a big revenue product but I don't see Apple doing that well.

 

[teknikal90]

That'd be dumb. Let's see, Tesla's market cap right now is about $33 billion. They've only spent in the low single digits to develop what they have now. If Apple wants to get into cars they'd save $25-30 billion by developing their own (including possibly partnering with other automakers) instead of buying Tesla.

Logic. I like.

 

[Heltik]

...
If Apple applies that model to cars and light trucks, it will likely have a Designed in California label, but have parts made all over the world and assembled in some low cost country like Mexico. I doubt USA politicians will successfully make a business friendly environment anytime in the next 8 years.

...

Rocketman

Though Donald Trump might get on the phone to Tim Cook... And of course, Tim Cook may play it cool, but eventually will phone President Donald back... lol.

 

[Benjamin Frost]

I must say, I don't find these Apple Car rumours encouraging.

I love using my Apple gear, particularly my iPad and iMac. But the prospect of an Apple Car does nothing for me. I can get from A to B comfortably, quickly and with ease with a car now. What can Apple possibly invent to improve this?

Smartphones had a tiny presence before Apple got in. Ditto tablets. Cars have a huge, comprehensive, competitive landscape which covers every price range and quality level. I can imagine Apple carving a luxury niche, but what's the point?

It's almost as though Apple can't cope psychologically with being a big company, and are trying to make niche products like the Apple Watch, because subconsciously, they want to be small and exclusive.

I think they should substantially lower the price of the iPhone and make it as mass market as the iPod was. Jobs proved that they could combine quality with volume. Let's see Cook follow in his footsteps, if he has the balls.

 

[nostaws]

It might not be low margin, if Apple can figure out ways to lower manufacturing costs, avoiding dealerships and sell directly to the consumer (tesla has been getting laws in some states changed in that regard), etc.

I just can't imagine Apple entering such a low-margin business like automotive.

 

[62tele]

Neither Apple nor BMW, and certainly not a combination of the two has the necessary vision and follow through to do a car right. I don't think they got the watch right, Apple music is a miss, and I'm frightened of what they'll pump out for a tv product.

Yeah, BMW cars are crap! Who would want one?
Apple is a total failure. The Watch had what, $1.3 billion in sales in the first quarter? A total bomb, although I love mine.

Sheesh.

FWIW, I'm still rocking my Apple TV I bought three years ago and I love it. I've given several as presents to folks who still love theirs. The next version is expected to be killer.

 

[questioner76]

My bet is that Apple is trying to take the same approach with a car as with iPhone - design it in-house but have someone else build it. Hence the talks with BMW and Musk. This would provide lower capital requirements and would require less manufacturing know how, etc.

 

[Cloudsurfer]

I still don’t see why Apple is even interested in that market. What is so interesting about it?

Well, for one, no car company (except Tesla) 'got' the electric car yet. Here in Europe, Tesla, BMW and Renault are the frontrunners of electric vehicles and you can really see the difference between a computer company making an EV and a traditional car company making an EV. The BMW i3 and the Renault Zoe only have a range of about 100km, while the Tesla easily reaches over 300km.

If we're going to move away from oil, we need more cars like Tesla (e.g. computer geeks making cars)

 

[ArtOfWarfare]

Just buy Tesla and be done with it.

That definitely seems like a good choice for how to enter the market to me, but would they do that? Tesla is currently work $33B, which means they're worth 11x what Beats was, which, AFAIK, has been Apple's largest acquisition to date.

No matter what, Apple is going to be buying batteries from Tesla's gigafactory. The world doesn't produce enough batteries right now for EVs to be the norm, which is why Tesla is building the gigafactory.

 

[Mactendo]

I don't believe they'll be able to make at least a mildly innovative, decent, not even revolutionary, but decent car. Given Apple's current issues with most products. They can't make a TV set for years.

 

[Piggie]

Is not Samsung in a far far better position to realistically produce a car?
I know many seem to think Samsung only makes phones, chips and TV's, but they have vast other aspects to the company as a whole, making ships etc, with the Samsung Heavy Industries.

I would of thought if any electronics company wished to produce a car, Samsung would be the most obvious choice with probably much in place already of the physical production of good front.

 

[Cole Slaw]

So I wonder if the Apple car will be made in China like the rest of their products or if Mr. Cook can convince German auto workers to work for more Apple-like assembly worker wages, say like $2.00 per hour?

 

[aront]

Just buy Tesla and be done with it.

Why, so Tim Cook, the confused, visionless, bean-counter could ruin Tesla the way he's ruining Apple? No thanks. I have a better idea: How about Apple replace Tim Cook with Elon Musk?

 

[KALLT]

Well, for one, no car company (except Tesla) 'got' the electric car yet. Here in Europe, Tesla, BMW and Renault are the frontrunners of electric vehicles and you can really see the difference between a computer company making an EV and a traditional car company making an EV. The BMW i3 and the Renault Zoe only have a range of about 100km, while the Tesla easily reaches over 300km.

If we're going to move away from oil, we need more cars like Tesla (e.g. computer geeks making cars)

And, very important, Nissan. But Tesla has been at it for quite some time now, they started development a few years after Apple released the first iPod and before Apple started developing the iPhone. It took years for them to release their first car and even more years before they were in the position they are now.

I am worried that Apple is becoming a do-it-all company for no apparent reason and that it eventually neglects its core businesses. Apple frequently cites experiences lack of resources (i.e. engineers) and there are lots of areas where Apple could improve their existing products. Take smart homes, for instance, it has yet to get off the ground. I just don’t see the point of entering this market. Even Google hasn’t come up with a decent and usable car yet, as they’ve mostly focussed on the automatic driving capability.

 

[aront]

There is no way Apple, with Tim Cook at the wheel, could compete with Tesla and Musk. Give it up Apple. Or, replace Cook and find an actual innovative thinker focused on making the best products possible. Right now you've got a clueless, numbers guy focused on gimmicks, marketing, and profit margins.

 

[ke-iron]

I just can't imagine Apple entering such a low-margin business like automotive.

Which is precisely why they will enter the market. If anyone know Apple is that their products sell with great profit margins and when it comes to manufacturing processes they reinvent and redesign it to make their products. I would not be surprise if Apple is able to reinvent how cars or components are built and makes it 50% cheaper manufacturing process while still selling it an affordable price and making 30% or more profit after factoring in all costs etc...

 

[McGiord]

"Given Apple's lack of experience with industrial manufacturing, a partnership with BMW or another car company would make sense, as it could help speed up development and eliminate many of the headaches associated with entering an entirely new industry."

Really???

This may be a mistranslation from German to English.

 

[YAW]

That car looks like a cow...

 

[StoneJack]

Is not Samsung in a far far better position to realistically produce a car?
I know many seem to think Samsung only makes phones, chips and TV's, but they have vast other aspects to the company as a whole, making ships etc, with the Samsung Heavy Industries.

I would of thought if any electronics company wished to produce a car, Samsung would be the most obvious choice with probably much in place already of the physical production of good front.

Samsung already makes cars. They are called Renault Samsung motors, initially Samsung only company (from 1994). Not very profitable, mind you. Sold to Renault, makes mostly taxi cabs.

 

[StoneJack]

Apple reason to go into cars:
The ecosystem encompasses desktop, mobile, car and home. Apple is only partially in cars via Apple CarPlay. In home push will be later this year. Cars are one of preferred methods in transportation. Hence, ecosystem won't be full if no cars with Apple presence. CarPlay is a first step towards that solution.

Apple's need: Given that Google and MS both investing in car technology, MS is even a more established player, losing that segment to Google migth be very dangerous.

Apple's advantages: Strong R&D in metal manufacturing, assembly, global supply chain, mobile technology. A network of AppleStores as a possible vertically owned dealership network. Loyal fan base with highest income.

Apple's disadvantages: no familiarity with car business. No own engine technology (the most important part).

Apple's benefits: may create full Apple ecosystem if in house cars developed.

Risks: may lose a lot of money if things go wrong.

Conclusion: apple car is now on research stage.

 

[Tech198]

I dunno about discussions but i like that car.

Kinda sporty

 

[AreanFSL]

Should be interesting. Love to see what they come up with.