Apple's Automotive Team Includes Former Tesla, Ford and GM Employees

[nuckinfutz]

Apple certainly has the capital to fund developing a line of cars - it's the talent that I'm not so certain they have. Even with hundreds of employees from Tesla, Ford, and GM. Tesla has 10K employees to work on 3 lines of cars (S, X, and 3. I assume the number of employees working on the Roadster at this point is negligible.) I would assume for Apple to make a single line of cars would require at least 3K employees on the project, but nobody is saying Apple has thousands of employees on this project. Everyone is saying numbers that sound like there are perhaps 300 employees on this project, at most.

The best example is to use Tesla as a archetype.

Founded in 2003 they delivered the Tesla Roadster 5 years later.
In December of 2012 they had 3000 employees
In January of 2014 they had 6000

Advantage for Apple?

• Capital. No need for VC rounds.
  
• Technology. It's been 12 years since the founding of Tesla. Apple's hitting the ground with rapidly maturing battery technology.
  
• Manufacturing - despite what people say Apple's pretty strong in automating manufacturing at a smaller level and clearly has great contacts

It's really an intriguing idea but juxtapose that with Apple idiosyncrasies like the penchant for abandoning projects and the thought of them making a car makes me shudder as well.

 

[theluggage]

As many have pointed out: cars are very low margin, and Apple usually doesn't venture there.

Lets see... China has a huge car industry with the potential to flood the west with cheap cars - but the cars tend to be rather uninspiring knockoffs of Western designs (go Google Chinese Cars Are Coming).

What if you design sexy mid/high-end cars in the US, manufacture them using cheap/efficient/flexible Chinese labour, then sell them at high margins under a premium Western brand name.

Anything strike you as hauntingly familiar about that business model?

Meanwhile, if the guy from PayPal can make electric cars and space rockets, why can't Apple?

 

[AlecZ]

The quality of posts on this board is embarassing.

That's not very nice.

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It's not as wacky as it may seem. Future cars *are* electronics. You could argue that Apple is better suited to building electric cars than traditional carmakers.

Also, they will outsource the actual manufacturing to someone like Magna Steyr, just like Foxconn manufactures iPhones.

They'd certainly make better entertainment systems in them.

 

[KdParker]

You don't see the technology correlation? That was a straight line. Cell Phones had computing power and storage. I remember back in the early to mid-90's discussing it with friends - talking about how were were eventually going to have computers and phones converge and have our entire music libraries on the computer and eventually the phone. So on and so forth with video, etc. We already had the CD and Sony's MD player. It was an obvious evolution.

Actual auto manufacturing would be a pretty radical departure.

No I don't.

Calculators also had computing power and storage too. Lots of things did. This 'natural progression' as you call it didn't really happen until the iPhone.

I would argue that Apples business was iPods, and desktops and the iPhone is a departure from both of those lines of business. I am not of the mind set that the iPhone is just a beefed up iPod.

 

[avanpelt]

I really can't see Apple getting into the automotive space beyond CarPlay; but then again, 10 or 15 years ago, I didn't imagine that they would be getting into phones, either. We'll just have to wait and see...

 

[dazed]

I can't wait to see how Samsung responds .

Maybe they will partner with Hyundai

 

[i5pro]

If it is a car, I'll believe it when I see it.Maybe they're working on the flux capacitor.

 

[micharea]

mapping vehicle?

I know there's a lot of excitement behind the prospect of Apple releasing a commercial car, but I really don't think that's what is going on. It makes a lot more sense that Apple is developing an automated electric car for mapping purposes. Can you imagine how simple that would make things for them? Especially if they implement solar technology, they could simply program routes into the cars and they can run for days. Bring them back into Cupertino occasionally for maintenance, but other than that, they essentially have smart robots traversing roads and updating imagery, capturing speed limits and directional signs, and much more.

I don't think it costs that much to put drivers in mapping vehicles. it costs a lot to make an autonomous car that can do it.

Not to mention, isn't Apple using TomTom's mapping data...and very likely at a very inexpensive price. Why would they create their own map?

 

[powertoold]

I hope this doesn't become a major resource hog for Apple.

They have 150+ billion in the bank, but if they don't use it wisely, they're screwed

 

[uknowimright]

Maybe they will partner with Hyundai

they already did with Renault

 

[projectle]

Or...

Carplay.

 

[KdParker]

I hope this doesn't become a major resource hog for Apple.

They have 150+ billion in the bank, but if they don't use it wisely, they're screwed

you have alot....I mean a whole lot of wiggle room with 150 billion in the bank.

 

[smulji]

If Tim Cook has approved 1000 employees to work on a project just to keep Jony Ive happy then I question his leadership. But, quite honestly, since Cook seems to be obsessed with global warming perhaps he thinks Apple needs to get into the EV space to move it forward in a more meaningful way.

Or maybe under Tim Cook & Jony Ive, Apple sees itself as a design company, first and foremost, that just happens to make iPhones, iPads, Macs, Watches. Now they'e just going to take their core expertise / strength / business model and apply to vehicles

 

[rockarollr]

Don't Put Limits On Your Thinking

Apple is a BIG company. It's time to start thinking BIG.

 

[oliversl]

So the bugs in iOS and OSX are here to stay.

 

[lavvo]

So you can't see Apple getting into the Car business eh

I found this statement to be funny from people saying they can't see Apple getting into the Car business (Just like Phone Business, Just like Watch Business, Just like taking over Payments etc...). Let's see, a guy who came from Tech (*cough* Payments) Elon Musk was never in the Car business either and how did Tesla happen? Now we are talking about Apple that has way more money, resources and manufacturing contacts than Elon Musk did when he started....does this really seem that far fetched?

Frankly, I have no idea what Apple is doing. But people need to stop with the "I can't....". Let me also remind people that most new cars the days are do electronic, there are fewer and fewer mechanical moving parts in them these days.

Not far fetched at all people. But let's all just wait and see.

 

[Ray mr]

Driver control units first!

I believe it will at first be a driver control unit that will hook into every car to allow self driving vehicles. Each company will build their own actuators to turn their power steering/rack and pinion and accelorator/brake controls but they will be compatible to apple units. That is why your are seeing virtually every car makers' talent now being involved. Later on Apple will likely build their own electric cars or buy TESLA once battery science is more advanced and charging units are universal and everywhere.

My father inlaw worked 40 years in the high current field on particle accelorator machines, and this field which battery science is now entering is as much an art as a science. Accordingly, there is much more trial and error to advance the science.

 

[nuckinfutz]

I found this statement to be funny from people saying they can't see Apple getting into the Car business (Just like Phone Business, Just like Watch Business, Just like taking over Payments etc...). Let's see, a guy who came from Tech (*cough* Payments) Elon Musk was never in the Car business either and how did Tesla happen? Now we are talking about Apple that has way more money, resources and manufacturing contacts than Elon Musk did when he started....does this really seem that far fetched?

Frankly, I have no idea what Apple is doing. But people need to stop with the "I can't....". Let me also remind people that most new cars the days are do electronic, there are fewer and fewer mechanical moving parts in them these days.

Not far fetched at all people. But let's all just wait and see.

Anymore common sense like this and I'll have you banned sir!

 

[TMay]

If Tim Cook has approved 1000 employees to work on a project just to keep Jony Ive happy then I question his leadership. But, quite honestly, since Cook seems to be obsessed with global warming perhaps he thinks Apple needs to get into the EV space to move it forward in a more meaningful way.

Renewable and what's attached (cars and homes) are sure to be big business; Apple gets to do the right thing and make more profit.

What's not to like?

 

[PS8409]

Best case scenario for Apple making a car:
- "Siri, start my car" you say to your Apple Watch before you're done eating breakfast.
- "Siri, take me to work" you say once entering your car.
- later that day Siri reminds you you need to charge your car that night. It's at 13% battery. You charged it a week ago.
- Your Apple Watch is the key to turn your car on. There's no start button. You just hold your watch up to an ignition-starting area and it starts it for you.
- "Siri, come pick me up" you say before exiting your place of work. "On my way sir" she says. Your Apple Car comes and parks itself near your location.
- As an added bonus, "Siri fly me to my Mom's house". It turns into a flying car. Jk.

Also, obviously your iPhone would double as an apple watch for people that don't wanna buy the watch. But I'm sure they'll require the watch to do something the iPhone can't at some point.

 

[iSee]

I don't think there's any doubt that Apple could enter the automobile market. That comes down to resources -- money -- and Apple has so much of it, even this isn't a stretch for them.

The question is, why would they?

They are a consumer personal technology company and automobiles are, perhaps, the ultimate personal technology.

They might be looking ahead a little and seeing that there's a limit to how many gadgets, however useful, that people want to buy and own... once everyone's on a 2 year update cycle for their communication & productivity, entertainment, and fitness monitoring devices, where do they go?

Meanwhile, they have a huge pile of cash -- what do they do with that? It would be easy to spend that cash on big acquisitions, but how many are there out there that are actually good strategic moves? This still goes back to the big picture: what is the long-term strategic direction?

Sure, they could just keep on doing what they are doing: just keep coming out with newer more capable gadgets and accept the inevitable slow growth. In that plan, they'd probably want to spend their cash on acquisitions, stock buybacks, dividends, not to mention keep a reserve for the coming rainy days.

Or, they could make a huge, bold leap into automobiles. You might have noticed: they are at an inflection point in terms of the fundamental technologies that drive them. They also have an incredible connection to their users. These are Apple's strengths. It's true that they don't know anything about the details of the processes of developing, manufacturing, selling, and supporting automobiles. But there are plenty of people that do, and Apple can hire them.

The more I think about this, the more it makes sense for Apple in the long term.

The downside is that there's a large chance of complete failure -- that is, that they are ultimately unable to create a car and sell it profitably. In that case they will have burned through up to tens of billions, depending on how deep they go, with nothing to show for it.

I kinda think Apple has the confidence (or is it hubris?) to try it.

 

[diamond.g]

Best case scenario for Apple making a car:
- "Siri, start my car" you say to your Apple Watch before you're done eating breakfast.
- "Siri, take me to work" you say once entering your car.
- later that day Siri reminds you you need to charge your car that night. It's at 13% battery. You charged it a week ago.
- Your Apple Watch is the key to turn your car on. There's no start button. You just hold your watch up to an ignition-starting area and it starts it for you.
- "Siri, come pick me up" you say before exiting your place of work. "On my way sir" she says. Your Apple Car comes and parks itself near your location.
- As an added bonus, "Siri fly me to my Mom's house". It turns into a flying car. Jk.

Also, obviously your iPhone would double as an apple watch for people that don't wanna buy the watch. But I'm sure they'll require the watch to do something the iPhone can't at some point.

Sounds good except for the bold part. Tesla Model S is on as soon as you go near the vehicle, there is no need to "start" it. Just get in, put it in drive and go.

 

[TechRemarker]

It would be completely bizarre for Apple to actually be getting in to the automobile manufacturing business. I suspect this has much more to do with ancillary technologies like batteries, navigation, autonomous navigation, deeper auto integration, etc. Way too much of a departure from the core technology business.

I don't think it's much of a stretch. Tesla does not consider themselves a car company but rather a technology company. I for one hope Tesla and Apple continue to forge in this area to wake up the complacent automobile industry. Just like with cable internet, there is no reason for Comcast to lower prices or innovate because their is no competition..until Google. And in markets where Google is available they have matched pricing and increased their speeds showing they have the technology but no desire to offer it unless forced.

 

[doelcm82]

Just so very exciting to think about Apple creating a car! Realistically, there is less than 1% chance of that happening anytime soon. Yes, Apple has more cash than most countries...but there is no place for Apple in the automotive business and they know it. I could list the reasons...but my hands would cramp from typing them all.

If by "anytime soon", you mean a marketable car this year or next year, then I agree with you. Almost no chance. But five or six years down the line (assuming Apple has already started work), the odds get better.

 

[nazaar]

A super-expensive hobby that would be! But then, Apple is rich.

Yep they can afford expensive hobbies. If it is I won't be interested.