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Why isn't Apple producing it itself? They have the cash.
Huge ramp-up and yield risk, much like the manufacturing hell for Tesla's Model 3.

Contrary to the belief here that Apple "designs" things, Apple has no experience in actually manufacturing anything. They take reference designs from the manufacturer, do a few worthless customizations so that they can legally say it's "custom designed" and then roll with it. They're just terrible at actually developing the technology they use in their products.

Why take on the risk of designing a new tech and run the risk of manufacturing hell when you can let the manufacturers do that?

I have a post describing the process in detail:

You're funny if you think Kia is taking on just a simple assembly manufacturing role. If that was all that it was, then wouldn't Apple go with lower-cost Chinese assemblers, you know, like the ones assembling Nio, XPENG, and Geely vehicles?
Moreover, our favorite Apple analyst Ming Chi-Kuo even said the E-GMP platform will be used, so I'm not sure where you're getting that Apple will be designing everything from scratch, unless you think they're going to sell a Model 3-specced car at $5 million at a huge risk that the new manufacturing process may not even ramp-up successfully.

I'll repeat - Anytime you make a brand new design that's non-derivative from what the manufacturer has, an entirely new manufacturing process has to be made. Apple can make very, very slight modifications to the manufacturing process to call it "custom-designed", but the underlying technology comes from the manufacturer.
With a new manufacturing process, you run the huge risk of low yields and poor ramp-up times. Apple is not going to risk that. They will take what the manufacturer already designed and do very slight and minor changes to call it "Apple-designed" or whatever. That way, they can pretend they designed everything and they don't run into yield problems.

In high-level manufacturing (Not assembly manufacturing), with the exception of Tesla (Because Elon is a crazy genius, and Tesla is their own manufacturer), literally no one goes to a manufacturer and tells them to build a new manufacturing process for a completely new custom part or product. NO ONE. That is not how the business world runs. In fact, Tesla tried doing this before they started manufacturing things themselves, and all the suppliers told them to take a hike. Their current processes couldn't accommodate Tesla's design requests, and they would have to come up with an entirely new process for all of Tesla's demands.

In any high-level or advanced product development, the manufacturer is responsible for product development and creating a reference design, and any "custom designs" from customers like Apple are derivatives of the this reference design so that much of the manufacturing process can be maintained and ramp-up and yield risks are reduced (Ex. Model Y shares most of its parts and has very similar manufacturing processes as Model 3. Only differences are the potential structural 4680 battery packs and new aluminum die-cast for the rear body). Why do you think Apple and Samsung phones have very similar quality panels despite Apple claiming they "custom designed" their displays? It's because the underlying technology of the panels are the same (Same Samsung diamond-pentile with Y-OCTA tech, etc.).

So why is high-level manufacturing more stringent with design rules than low-level assembly manufacturing? Because the former relies more on precise mechanical movements while the other relies on humans putting parts together. The manufacturing process in high-level manufacturing has to be engineered so that the machines coordinate well together, but any changes to the process can screw up yields.
With low-level assembly manufacturing, a person can just stuff a component in the right socket. Doesn't have to be exact on the first try.

I don't really care if you want to pay $150k for a Hyundai or Kia. Go for it. There's nothing wrong with them. They make very high quality cars and are underappreciated by people who love branding.
I'd rather buy a Model S Plaid. At least I know I'm paying $150k for unique technology actually created by Tesla and not by some 3rd party.
 
If you're not upset, then shouldn't you be saying "I am so happy Apple is using Kia! I can't wait to pay $150k to buy a Kia! I want to drive this $150k Kia every day!"?

Like I said, Kia is a great company. Apple thinks they are the highest quality automaker, so what's your issue?
Not totally sure that KIA will manufacture the Apple Car, not even sure about will exist an Apple Car someday. Anyway, I will save your enthusiastic post for that future, sure a way or another we all will laugh a lot!

BTW, I don’t have any personal issue against you (nor KIA/Hyundai/Genesis). Is just that your passion about this topic calls my attention when actually at this very moment of the project we don’t have anything for sure.

So, what will you do if KIA doesn’t build the Apple Car??
 
Not totally sure that KIA will manufacture the Apple Car, not even sure about will exist an Apple Car someday. Anyway, I will save your enthusiastic post for that future, sure a way or another we all will laugh a lot!

BTW, I don’t have any personal issue against you (nor KIA/Hyundai/Genesis). Is just that your passion about this topic calls my attention when actually at this very moment of the project we don’t have anything for sure.

So, what will you do if KIA doesn’t build the Apple Car??

I do hope Apple goes with Kia/Hyundai. Not just for Apple's sake, but for the lolz when I can say people paid $100+k for a Kia. That seems to really upset people here who are sensitive about branding.
For real, though. There's nothing wrong with a Kia/Hyundai. The E-GMP platform really is well-made.
 
I do hope Apple goes with Kia/Hyundai. Not just for Apple's sake, but for the lolz when I can say people paid $100+k for a Kia. That seems to really upset people here who are sensitive about branding.
For real, though. There's nothing wrong with a Kia/Hyundai. The E-GMP platform really is well-made.
Ok, good for you. 👍🏻
 
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Oops. Dude you’re not getting a kia now. Lol
Nothing wrong with a Kia, especially one that's $150k or above.

I prefer the $130k Model S Plaid+, which is the best sedan in the world. If people in this board want a $150k Kia, then that is their choice to buy a $150k Kia. Nothing wrong with a $150k Kia. People complain now about a $150k Kia, but when it has Apple's branding, people will fall in love with a $150k Kia.
 
Apple is probably talking to a load of manufacturers. Bits of conversations are leaking out that probably don’t add up to much. Apple is probably in no rush to do anything until autonomous automobile technologies mature. Right now they are just positioning themselves for the future.
 
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Apple is probably talking to a load of manufacturers. Bits of conversations are leaking out that probably don’t add up to much. Apple is probably in no rush to do anything until autonomous automobile technologies mature. Right now they are just positioning themselves for the future.
No need to be nervous, friend. When the time comes, you will gladly buy that $150K Kia.
 
Apple doesn’t need to pay for Tesla brand. They have over a billion loyal users and they can sprinkle their own luxury dust on the car. Tesla is too overpriced for what apple needs.
sorry, how is this related to anything i said?.. also, correct me if i'm wrong, but isn't it over a billion devices, as opposed to loyal users?
 
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Yep. I really do hope you enjoy your $150k Kia.
I'll be sporting my $130k Model S Plaid+. If people here prefer the $150k Kia, then there is nothing wrong with that. I do hope people here think that $150k Kia is worth it.
I would never spend more than $50k in a car, even if it were handcrafted by Lamborghini, Rolls Royce or whichever manufacturer you want. Why? As simple as I live in Mexico City and to have any car of that price here is like having a ticket to be kidnapped at minimum. So no, I will pass and most likely I will stick by now to my Prius. For me, the security of my family and myself’s is first by far. I hope you don’t have a problem with that.

Go enjoy your Tesla, Apple Car, KIA or whatever you want to drive.
 
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Tesla is a growth company. Most profits get funneled back into capex and R&D. Those gigafactories aren't going to build themselves.



🤣 This agreement will happen whether you like it or not. E-GMP is very hard to beat.
You sound upset that you're going to pay $150k for a Kia. Don't be! Kia is great. $150k for an Apple-branded Kia could sell well! It'll be inferior to Tesla's cars, but people buy Apple for the brand, not the product quality, so all should be good.
Enjoy your Kia! 🤣
Apple spent almost $19B on R&D to Tesla’s $1.5B in 2020.

Apple just put up 21% revenue growth and 30% profit growth.

Tesla put up 27% revenue growth in 2020. Hardly huge growth and similar to what Apple just did.

Tesla trades at 1500X earnings, Apple trades at 35X.

Tesla made <$2B in operating income in all of 2020. If you don’t know, that is the line before R&D and pretty much none of that was selling cars...see below quote from NASDAQ.

Apple made $33.5B in operating income in 90 days and almost $80B in the last 12 months.

Tesla is a car company worth over $800 billion that has never turned a profit selling cars. ... But that profit did not come from the core business of manufacturing cars. Tesla booked a whopping $1.58 billion of revenue from selling regulatory credits last year, more than the previous three years combined.
 
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Why would Tesla agree to that? Tesla wants to control the entire development and production of their vehicles. There is no reason for Tesla to share profits with anyone else now that they're going 200 miles/hour and look unstoppable.

Not buying Tesla back in 2018/2019 is going to be Apple's biggest mistake.
Why its Apple biggest mistake and not Microsoft? or Google ? or some of the German automakers? or SoftBank (or other investing companies) is it because that tweet from EilonM that Tim Cook didnt replied back to him ? you think Apple can just go around and buy near bankrupt companies in the hope they can be turned around ? do you think if Apple did bought Tesla back then , Eilon wouldve stayed as a hire @ Apple and keep driving Tesla to where its at now ? to me if Apple bought Tesla before they were bankrupt , the company wouldve dissolved inside Apple , ppl would feel "oh , we dont have the unemployment sword on our neck anymore" and wont work as hard as they did , dont underestimate the drive of a startup to make it vs a big cooperate day2day work , Eilon wouldve left the day its "must stay" contract wouldve ended and he would not put the effort he put into his own company while he was in that contract timeframe , it happens ALL the time when companies buy startups , some of the workers stay to pick up all the vested stocks (usually 2-4 years are needed) but the founders have different "exit" contract.

but on topic , Tesla wont let anyone into their profits , your point should be obvious , not sure how folks here think Apple can just pick their car partner and every company will just comply.
 
Lexus a luxury brand. Tesla is a premium brand. They are not particularly luxurious in any trim.

They sell Apple stuff at walmart. Nothing about Apple is luxurious.
How is Tesla not a luxury brand?
i can buy a Lexus from Slims Auto sales down on Martin Luther king dr. 🤣
 
Personally I like to see Apple team up with Ferrari to form super duo and kick Tesla and the rest of auto world in the teeth..likely not going to happen as Ferrari have too much pride and won’t take second folder to Apple
 
Hyundai lol what a joke. Way to cheapen out the Apple brand real fast. They should be teaming up with Toyota or Honda that knows how to make quality long term reliable vehicles.
 
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Steve Jobs: Apple will be acquiring the E-GMP and Hyundai to be spun off as a manufacturing partner for producing and assembling smart-EV which will be available for the customer to purchase at Apple Store in 2021.

Tim Cook: How about postponing it until 2031?
 
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Apple is playing off many car companies against each other. These car companies will have to do their homework thoroughly to avoid getting screwed by Apple.
 
I still think Apple is still looking at other "skateboard" EV platforms to building their car. And that may include Geely's SEA platform and even Volkswagen's MEB platform.

All this Kia rumors could just be dust - MEB platform is on sale as VW already develops next gen!
 
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