I was going to mention that... They don't have 5 years of development; at best, they have 2 or 3 to get the car developed, and 2-3 to get the manufacturing site going.
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Apple in Discussions With Bay Area Test Track Focused on Self-Driving Cars
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When has apple ever let another company build their hardware? They have literally never. Even when everybody said it would be the death of them in the 90s.
If this product sees the light of day, then it's all apple. Hardware and software. Not a chance in hell its a licensing play.
If it were for licensing, why would apple need to be looking for test tracks? Surely BMW, Mercedes, audi, tesla, have enough to where it would be unnecessary.
Answer: A nanosecond ago. Samsung, NXPI, Qualcomm, etc. build the hardware. You've obviously done zero research.
There's more to it than that. The auto industry has low margins, liability concerns, dealership sales in the US, support concerns, high material and manufacturing costs, etc. I can't see Apple taking all that on vs partnering with existing manufacturers for in car systems that tie into stuff they already have.
Apple sources parts from companies OBVIOUSLY. But you can't run iOS on any other phone but an iPhone, you can't run OS X on any other computer but a Mac, etc.
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I think your original post may have been a little askew. You mentioned hardware in it at first, so that's where the person that replied went to.
It's true that Apple integrates parts into their hardware, but they do have places like Foxconn and the others manufacture the hardware. Apple doesn't seem to be in the business of "making" hardware as much as designing it ("designed in California by Apple"), but lets other (cheaper) companies make the stuff.
The one exception is the Mac Pro, which is made in Austin. (from what I remember).
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I think instead of build you mean design. IF Apple is working on a car it will be Apple designed but I am sure the actual manufacturing will be outsourced to someone else. I don't Apple wants to start owning manufacturing plants.
Clearly there was a problem with my phrasing. OBVIOUSLY Apple doesn't design every single part that goes into their hardware... I meant that Apple operating systems have ONLY run on Mac hardware. That's part of the apple mantra - they design and build everything to ensure hardware/software stability and compatibility.
SO, sure apple could source batteries from tesla, drive train from Bmw, etc etc. but it will be a Mac car, if it ever happens.
Again, there is zero chance apple is just building software to run on other companies cars. It is opposite of everything Apple has always stood for/done
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That is exactly what I meant. Horrible phrasing on my part obviously.
What I meant was Apple will not sell software to run on a bmw car. If this is a thing, it will be Apple software on a Mac car (whose parts could be sourced from a multitude of companies).
That is exactly what I meant. Horrible phrasing on my part obviously.
What I meant was Apple will not sell software to run on a bmw car. If this is a thing, it will be Apple software on a Mac car (whose parts could be sourced from a multitude of companies).
Do BMW, Audi, Mercedes, Volkswagen etc have low margins? What existing car company is going to partner with Apple for in-car electronics? I have yet to hear one say they'd like to partner with Apple (or Google for that matter). And when has Apple ever successfully been a piece of technology in somebody else's product? Apple is about the whole widget and controlling the entire experience. How can they really do that if they're just a part in someone else's car? And would CarPlay licensing really be enough to significantly grow top line revenues? I doubt it.
The other thing is has BMW ever indicated they want Apple software running their cars? The whole infotainment/car electronics thing is quite complicated and probably why auto companies are reluctant to outsource that to other companies.
"Obviously"? The only obvious thing here is your backpedaling after you stated that Apple has never "let another company build their hardware" and now you said you "obviously" didn't mean that.
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lol...dude did you just crawl out from under a rock? ever hear of Foxconn?
You do know Apple does not own Foxconn right? Or Samsung, or Sharp / LG, in fact a huge list of manufacturers that make Apple's devices. I can't even remember if Apple has ever made it's own products?
The ONLY thing I believe Apple makes is software. As said before, Apple design stuff, everything else is outsourced.
Apple went to see how the I3 was made, the carbon fibre techniques BMW use, they won't use an I3 for instance. But would maybe take some ideas from it or get BMW to help them?
I think it will be electronics, because you would need to test those thoroughly, if not only because I would imagine safety laws demand it.
Maybe people should give up on the idea of Apple only chasing fat profit margins when they are clearly trying to be inclusive and progressive for things like green initiatives and diversity.
When you try to be the symbol of technology and liberal arts, it costs and doesn't usually deliver the most profit. Think long term game like Apple does.
You're putting the cart before the horse. Streets are already mapped 95%. Why start a billion dollar business for that last 5%?
This..Of course we know where there's an existing plant that's capable of turning out EV's.
And there are these folks....
http://www.magna.com/about-magna/world-class-manufacturing
Many US states have more miles of road than your entire country... Thats a lot to take care of.
Uh, long-term game is to make money. That's the same for any business. "Doing good" leads to more business which leads to more money. It's naive and foolish to believe a company is doing something good just because they want to help the world.
If Apple wasn't chasing fat profit margins they wouldn't be paying Chinese companies to build their products—they'd be bringing the jobs back home to the U.S. Start with that.
In Montreal, that would be considered good condition actually. Not kidding.
Oh here comes Debbie Downer with yet another nonsensical comment. Perhaps you should continue sleeping.
You make it sound like getting into the auto business is an impossibility yet Elon Musk successfully entered the market with FAR less resources than Apple.
Apple can buy all the knowledge and equipment and whatever else they need to not only enter the auto market, but disrupt it.
How do you think conglomerates exist? Everything you describe is just knowledge and IP. My company successfully sells everything from computers to batteries to consumer electronics to healthcare & beauty products to solar equipment to heavy industrial products for the avionics industry.
It's not an impossibility but there are many, many more low-hanging fruits to pick from. Take TV, for instance. There were more rumors about Apple reinventing TV for years and nothing came to fruition yet. And that's a market that is much more inline with Apple's established businesses—and one that has big profit margins and is in need of a redesign.
If Apple can't even tackle TV after all this time, how do you expect them to take on the automotive industry in territory completely unknown to a personal electronics company? An automobile is a large, heavily-regulated piece of equipment with tentacles in everything from laws to safety to ergonomics and a lot more. It's a painful industry to get into.
Yes, Tesla is successful. But people need to stop ignoring the Fiskers, the Tuckers, the Vectors, and all the other car companies that failed. Quit trying to pick out only the winners and ignoring all the failures.
What it boils down to is pretty simple—Apple has a lot on their plate right now and there are plenty of things they can do to make easy money through disruption. It's illogical to go out of their way to take on a massive risk in a market that they don't understand.
That's why I said if they want to go into this field then they need to seriously consider partnering with or buying Tesla. There is no other car company that is closer to Apple's ideals.