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Former GM CEO on Apple Car: 'They Have No Idea What They're Getting Into'
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He doesn't get to export all his labor to China, automakers pay high Union wages. It's cute to look at Tesla, but they burned thru several billions before having a working car at all. There's not a "Foxconn" for cars where you just show up with a pretty picture and they make it... Even GM doesn't have those. The demands placed on cars are much higher. It can't have "bugs" like not turning left, or a lazy headlight... Look how hard Totota fought to keep the Feds from looking at their speed controller (it's SOP that the Feds look at whatever they want for safety) Feds are "up in your business" in the auto market at nearly every step of the process... Apple would be better off adding FDA Approved features to their watch.
I trust Apple to be able to figure it out, or at least figure out if it's even worth it. I was more referring to the people who say that because Apple figured out how to make a mobile phone, which is basically a small computer these days, that must mean they could just as easily figure out how to build a better car. I'm not saying they couldn't do it, just that iPhones and cars are like apples and oranges. Apple pun not intended.
Re-read the comment. He's not disparaging the idea. He's saying make sure you want to do it because it ain't like selling smartphones.
Using Mopar to reference a minivan.
That's sacriledge man. If it ain't muscle, it ain't Mopar.I'm not sure what cars you've been in that only have frames made of steel and the rest is cheap plastic and fiberglass!
And I don't think Apple is going to mill an entire car out of one giant lump of aluminium...
The average profit for high end makers are around 10-13% (Audi for example is around 12%). Not a huge net profit, but considering the revenues involved, still many billions.
Buying the furnace wasn't the end of the equation and those furnaces were seemingly much more temperamental than expected (GTAT was sued by someone who bought them). There were also new Intellectual property used in processing the Boules themselves.
Anyway, notice I didn't dismiss the difficulties of doing a car at all; quality issues are what bring down most car makers. There isn't any wiggle room there and getting Apple hardware quality right from the start would be a big challenge. Producing crap is no challenge obviously ;-).
Apple doesn't want a bad Car to affect their overall brand; which is probably the main reason why they'd want to stay out of it.
Its not that small a task, there is a reason that there was alot of consolidation in the telecoms market in the early 00's . Thers is no reason for
to develop there own modem technology, but that not what the thread is about. Could Apple create an all new technology?
No inside source.
A hybrid would be a a good starting point if they had started five years ago, because they could be coming to market in the next year or so and the infrastructure is not ready. But there are more charging stations now than there were a year ago, and there will be more next year, and the year after that.
I don't know if Apple is going to build a car. It's conceivable that they are exploring the idea. If they do bring a car to market, I'd be willing to bet they aren't going to offer a CD player as an option, or a ICE hybrid engine.
I could see a fuel cell electric / plug-in electric hybrid, though.
To be fair, a smartphone is just a small computer which is very much in the same realm of what Apple has always made. A car really is a very different beast. I seriously doubt apple is making a car but if they are I'm sure it will be electric and very, very different from the old and outdated model GM uses to design and manufacture their cars.
Again, I seriously doubt Apple is actually intending on making and selling an automobile for consumers. Maybe they are making their own self driving cars for the Apple campus, that I could believe.
Again, I seriously doubt Apple is actually intending on making and selling an automobile for consumers. Maybe they are making their own self driving cars for the Apple campus, that I could believe.
Thing is, for Apple to play in this market, let alone become competitive, they'll have to spend tens of billions before they'll make even a single red cent. Even if they only want to be a little boutique company, like Tesla, it'll cost them a goodly chunk.
They have the money to try, certainly. The question is, will be able to get back their investment in 10-20 years? How long will it be before Apple is a growth stock again? Will they ever be a growth stock after this?
What Apple thought they were buying was GT's technology on making the type of sapphire that they wanted. The furnaces were the hardware to do so. Somewhere things didn't go anywhere near the way they were planned.
As of now we have no idea what Apple is planning on doing. What I do know is that Apple really liked that iOS Car Toy, Anki. Those cars have a level of Autonomous that Apple probably is thinking why not bring to real cars.
This is very true, we have had endless Apple television set rumours on this site for several years now... and we still have no Apple television set. So who knows?
Yeah... I'm so tired of cars that dent. I can't wait for that erra to end. Looking forward to the days when cars just shatter to pieces and both drivers find themselves just sitting on the ground surrounded by tiny shards of glass.
Saturn thought dent resistant panels were a great idea. Until cars were driving around with huge holes where a small dent might have been.
Ford is on the right path with strong aluminum. No rust, still rigid.
Fiberglass, glass, carbon fiber, and plastics have already proven to be poor structural choices.
But it would still be funny to watch a car essentially disintegrate on impact. So hopefully Apple will go that route. We need the comic relief.
And, on the plus side, Apple getting into the car business will start a whole new market of car covers and car skins for increasing strength and protection from impacts.
Maybe someone will even make a waterproof case for when Apple Maps tries to turn your car into a boat.
What is it with all the absolutes when it comes to this rumor? Either this GM guy is a doughbag or no way Apple is building a car. I think what he said is completly reasonable. But at the same time I wouldn't be surprised if Apple is looking at what role they can play in the car space. Last year Tim Cook said iPhone would be Apple's main revenue driver for the next 5 years. What comes after iPhone. It would be ridiculous to think Apple isn't thinking about what's next. Doesn't mean an Car is coming but also doesn't mean Apple isn't researching this space.
Car is coming but also doesn't mean Apple isn't researching this space.Just in the intellect department.
It always amazes me...the stupid stuff people say when talking about Apple's ability to evaluate a market and make a buck.
I don't think you need to have all the experience in house. Apple partnered with the company in Arizona to make Sapphire glass that backfired. The phones are built by other companies in China.
Apple doesn't make a lot of the parts in their devices, if any. Car manufacturers often build cars in factories and production lines ran by another company they have a close relationship with that the general public has never heard of. Parts for a single car can sometimes come from dozens if not hundreds of companies around the world.
I think an Apple car is a somewhat odd idea and I don't know how possible it is. Nevertheless, I don't think you can say Apple's people don't know how to do it. They don't need to be the experts working with steel, if an Apple car (electric) would even use steel.
Apple doesn't make a lot of the parts in their devices, if any. Car manufacturers often build cars in factories and production lines ran by another company they have a close relationship with that the general public has never heard of. Parts for a single car can sometimes come from dozens if not hundreds of companies around the world.
I think an Apple car is a somewhat odd idea and I don't know how possible it is. Nevertheless, I don't think you can say Apple's people don't know how to do it. They don't need to be the experts working with steel, if an Apple car (electric) would even use steel.
I still don't see Apple getting into the car business unless they buy Tesla. Start from scratch on a completely new industry sounds crazy IMO but I could see them buying Tesla and using their already established know how.
Apple and Tesla together could indeed be something very interesting and cool.
Apple and Tesla together could indeed be something very interesting and cool.
Tesla reinvented the car and has 30% margins which is higher than most in the auto industry. I doubt Apple could get more than that which would still be LESS than the 40% they get today selling phones. Moving into cars would be dilutive to Apple.
Apple didn't know anything about music before they entered into the music industry.
Apple didn't know anything about phones before they entered into the phone industry.
Two huge industries. Revolutionized by one company.
Winter is coming, GM.
Apple didn't know anything about phones before they entered into the phone industry.
Two huge industries. Revolutionized by one company.
Winter is coming, GM.
Flashback from 2007:
"The iPhone is nothing more than a luxury bauble that will appeal to a few gadget freaks. In terms of its impact on the industry, the iPhone is less relevant."
@ http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aRelVKWbMAv0
This article reminds us all how competitors and some investors reacted to Apple's iPhone launch.
I would be nice to see the same happen once again with cars.
"The iPhone is nothing more than a luxury bauble that will appeal to a few gadget freaks. In terms of its impact on the industry, the iPhone is less relevant."
@ http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aRelVKWbMAv0
This article reminds us all how competitors and some investors reacted to Apple's iPhone launch.
I would be nice to see the same happen once again with cars.