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Volkswagen CEO: We're 'Not Afraid' of a Potential 'Apple Car'
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This only applies to the numbers of Swiss watches shipped. In terms of value, the exports were even up by 2.6%.
This tells us that smart watches might be a thread to (i) quartz watches (the export numbers of mechanical watches were up by 4.5%) and (ii) to the low to medium market segments below CHF 3,000. The numbers for watches above CHF 3,000 were up 7.3% (value) and 5.6% (units), respectively.
So smart watches eat into the traditional watch industry, but not into all segments. The luxury watch segment is still thriving.
Source: https://www.fhs.swiss/file/59/Watchmaking_2019.pdf
Magnus
I don’t think VW has a lot worries about this. Sure, Apple is a respected competitor but I think technology can be bought. And VW AG is not stupid, see with the Porsche Taycan: a tremendous jump in three years to Tesla who is working on this more than a decade. Or Mercedes S-class and autonomous driving. I think German engineering can never be estimated.
Apple is widely rumored to be working on a self-driving car, internally codenamed "Project Titan." Apple reportedly began work on the project in 2014, and years later, the rumor mill is in full swing speculating when Apple will debut its self-driving technology. Speculation has become so rampant that potential competitors to an Apple Car are already weighing down its potential threat to the overall car industry.
As reported by Reuters today, Volkswagen Group CEO Herbert Diess said that he's "not afraid" of an Apple Car and that Apple will not be able to overtake the $2 trillion automobile industry overnight. In typical Apple fashion, the company has not confirmed it's working on a self-driving car, but Diess believes that the rumors and reports are "logical." Apple has expertise in battery technology, software, and design, and it can easily utilize all of its proficiency in those areas to create an automobile, the CEO was quoted as saying.
Similar remarks can be traced back to 2006, one year prior to the launch of the iPhone, when the CEO of Palm, which at the time was one of the leading smartphone makers, stated that Apple would not "just figure this out," referring to smartphones. In the years that followed, however, the iPhone would captivate the market, eventually leading it to $65 billion in revenue for a single quarter.
Volkswagen, based in Germany, is one of the largest car manufacturers in Europe and around the world, giving it significant dominance over the industry. Diess said he is not concerned that Apple joining the market would disrupt Volkswagen's dominance, saying that despite Apple's expertise in all of the technology needed to create a car, his company is still "not afraid" and that Apple "will not manage" to disrupt the market overnight.
Until this year, very little was known about how Apple would go about building an actual self-driving car. Apple uses third-party suppliers such as TSMC and Foxconn to build current products like the iPhone and Mac, but none of its current suppliers are fully positioned to build an automobile. On that front, Apple is expected to partner with an already well-known and established car maker to fulfill its self-driving car ambitions.
In early January, reports began to surface that Apple was close to inking a deal with Hyundai, after the automaker released a statement confirming that it was in talks with the tech giant. The statement was quickly revoked and reworded to exclude mentions of Apple, and it has since been reported that talks between Hyundai and Apple have grounded to a halt.
Multiple sources have suggested different timeframes for the launch of the Apple Car, with the earliest report suggesting a release as early as 2024. Bloomberg, however, believes that the car is "nowhere near production stage" and that a release is at least five to seven years away.
Article Link: Volkswagen CEO: We're 'Not Afraid' of a Potential 'Apple Car'hat they did with the Porsche
Some of the disagrees on this is odd. Folks that buy Rolexes will not suddenly replace it with Apple Watches. It’s a different market entirely. There’s a reason they buy Rolexes and it’s not simply to tell time.
I don't think people in general understand the scale of car manufacturing and the massive supply chain involved.
To give an example, Apple could fit ALL its iphones produced and sold 2020 on 2-3 container ships.
The rumored initial capacity for Apple car manufacturing at 100k would require 5 of those massive ships to fit all the cars.
And then they'd have around 0.2% of the global market.
I don't say Apple Car is not going to happen, just that it won't be a product for the masses. I think it will for long be exclusive to US, produced there, very different financing (and ownership) model than traditional.
There's this one more thing: the iPhone was peak Steve Jobs. This "car" or whatever it will end up to be is gonna be designed by a committee of floating middle-managers and interns with no singular focus and nowhere near the same obsessive approach to design.
Apple is not the same company that drove Nokias and Blackberrys to oblivion, in fact it's matured into something closer to Blackberry than Apple of the late 2000s.
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To be fair, a car is several orders of magnitude different from a smartphone than a smartphone is from a laptop. The key areas Apple can use to differentiate themselves from the competition are their usual bread and butter: software and the integration of that software with the hardware. There are already cars that go really fast, have beautiful designs, etc. Tesla will likely be their primary competition because they operate in that sort of space, and I fully expect Apple’s car to cost even more.
IMO their biggest obstacle (aside from production, for sales) is the shift to working from home becoming more permanent, along with delivery services taking over. This is true for my wife and I and I don’t see much of a reason to upgrade my car any time this decade (it’s already 10 years old and I keep it in great condition). If I did, it would be a car that I would want to drive for fun, not a shiny self-driving taxi full of touchscreens. Buying a car, especially a new one in the 2020s just doesn’t seem like it’s worth it if you’ve already got something reliable. We also don’t see any need for two cars in our household any more and will be selling one.
The big change in transportation that I’m looking forward to is the hyperloop and being able to see relatives across the country in-person quickly. Some companies, including my work, are on a four day workweek now so hyperloop trips across the country on 3 day weekends sound great.
IMO their biggest obstacle (aside from production, for sales) is the shift to working from home becoming more permanent, along with delivery services taking over. This is true for my wife and I and I don’t see much of a reason to upgrade my car any time this decade (it’s already 10 years old and I keep it in great condition). If I did, it would be a car that I would want to drive for fun, not a shiny self-driving taxi full of touchscreens. Buying a car, especially a new one in the 2020s just doesn’t seem like it’s worth it if you’ve already got something reliable. We also don’t see any need for two cars in our household any more and will be selling one.
The big change in transportation that I’m looking forward to is the hyperloop and being able to see relatives across the country in-person quickly. Some companies, including my work, are on a four day workweek now so hyperloop trips across the country on 3 day weekends sound great.
Looking back in history and think of what the critics have said
1) iPhone will not take off
2) the iPad won’t work, it’s just a big iPhone
3) people won’t buy the Apple Watch as it’s tied to the phone, it’s a small market that’s dominated by garmen and Fitbit. I get the car domain is big and difficult and hard to break into but remember that Tesla had laid the ground work for charging stations and infrastructure that made their entry to market more difficult. If I was in one of these car companies I would be doing everything I can to try and crush Apple now before it’s too late.
1) iPhone will not take off
2) the iPad won’t work, it’s just a big iPhone
3) people won’t buy the Apple Watch as it’s tied to the phone, it’s a small market that’s dominated by garmen and Fitbit. I get the car domain is big and difficult and hard to break into but remember that Tesla had laid the ground work for charging stations and infrastructure that made their entry to market more difficult. If I was in one of these car companies I would be doing everything I can to try and crush Apple now before it’s too late.
Dies has said something to the effect of “not afraid” twice now. Last time IIRC he said we welcome new competitors, this time not.
If not afraid, then concerned, or possibly he knows he’ll be on his golden parachute before apple takes away some of his premium customer profit for itself.
If not afraid, then concerned, or possibly he knows he’ll be on his golden parachute before apple takes away some of his premium customer profit for itself.
Fully agree.
Except, there has never been a better time to enter the industry in the last 100 years.
No need to learn how to design an engine, transmission or axle, or to invest in these long lead cash intensive vertically integrain-house insourced components.
Except for the batteries, controllers and drive motors/regenerative brakes, everything else in a car is a well known commodity made by a competitive supply base, not in-house insourced factories.
Even the final assy can be outsourced. There’s plenty of that going on between OEMs and assemblers anyhow.
With electrification, making cars is much more like manufacturing and assembling phones than ever.
As for incumbent OEMs crushing Apple? Not likely. Apple has the cash flow and liquidity to do whatever it wants and to and to commit to it for the long haul. Carmakers are always just one economic downturn away from bankruptcy.
All carmakers can do is put on their track shoes to compete against each other by not being the slowest one running away from the Apple bear.
All CEOs say the same thing. I mean what can he say realistically ? "We are afraid of Apple and possibly we go down similar to Nokia or BlackBerry" isn't going to help VW either.
I’ve been driving VW since 1998, and Apple is of late has been turning me off in almost every way.
I’ve said IG here plenty times, but I’m far more loyal to VW
I’ve said IG here plenty times, but I’m far more loyal to VW
I don’t know why anyone would expect a company that made almost 11 million vehicles in 2019 would be scared of an Apple car.
I’m sure Apple will make a success of their car but I don’t think they’re going to make a dent in VWs sales when you consider the numbers. Imagine what infrastructure would be required to do that. Even if someone else is building them it’s a hell of a lot of dealers required to support a threat to someone like VW.
I bet these companies don’t even mind the competition from a company like Apple or Tesla. Tesla have managed to make consumers think electric is a real option. Something VW will probably benefit from going forward.
Plus Apple fan boys have nothing on VW group fan boys 😂
I’m sure Apple will make a success of their car but I don’t think they’re going to make a dent in VWs sales when you consider the numbers. Imagine what infrastructure would be required to do that. Even if someone else is building them it’s a hell of a lot of dealers required to support a threat to someone like VW.
I bet these companies don’t even mind the competition from a company like Apple or Tesla. Tesla have managed to make consumers think electric is a real option. Something VW will probably benefit from going forward.
Plus Apple fan boys have nothing on VW group fan boys 😂
VW should not be afraid, yet they should pay a very close attention to it, as Apple are well-known to set new market trends and shake certain industry sectors. Steve Ballmer arrogantly laughing-off iPhone is a good example of a wrong attitude in a similar situation. This time Apple are not even building this rumoured car themselves, yet they may offer something so appealing to the masses to improve their driving experiences, that any other car makers should at least take a good notice of it, IMO.
What else would he say, seriously? "Yes, the Apple Car, we're scared sh*tless" or what? 
In any case, Diess is a totally down to earth guy, he has a good relation with Musk too, and he's the best thing that could've happened to VW. I wish him good luck with the BEV transition.
In any case, Diess is a totally down to earth guy, he has a good relation with Musk too, and he's the best thing that could've happened to VW. I wish him good luck with the BEV transition.
Volkswagen: We are not afraid of Apple. Not one bit.
Apple: ALL UR FAHRVERGNÜGEN ARE BELONG TO US!
Volkswagen: Red Alert! Red Alert! We are under attack!!
Apple: ALL UR FAHRVERGNÜGEN ARE BELONG TO US!
Volkswagen: Red Alert! Red Alert! We are under attack!!
So much for my joke of irony.They have AppleCare, and AppleCare+. They do not use WatchCare or PhoneCare, so I am pretty sure they are ok.
Trivia: I come from a time when there was no AppleCare and in the early days of AppleCare. You just took your Apple gear into the Apple Store; they fixed it and sent you on your way with no co-pay. I recall about 5-6 times when the item could be a few days, a few weeks, or even several months after the warranty; no charge. That's when Apple treated customers with extraordinary customer service.
Seriously, even I don't get why they underestimate.
Apple/Android took the smartphone from blackberry, Nokia. Look how well tesla is placed in the middle of veterans, look how GoPro just snagged the action camera market, while the Sonys, the Canons, the Panasonic sleeping over it.
Apple doesn't have the experience in making cars, but they have enough money to buy them.
“putting wheels on a Mac Pro doesn’t make Apple into an automaker.”
I have to say I haven’t laughed that hard in some time!!
Yeah...and look at the cost of those tires...the apple car (if actually exists) will cost like a down payment for a house.
Why would a CEO say he is afraid of a theoretical project? This guy said the only thing he ever would say regardless of his real thoughts on the possibility.
Tesla owned the premium EV market, true. It still has a very dominant role in the US, but not so much in Europe or Asia. The list of sales by BEV model in Europe in 2020 starts by Renault Zoe, Tesla Model 3, VW ID.3 (deliveries started in September), Hyundai Kona EV, Audi e-tron, VW eGolf, Nissan Leaf, Peugeot 208 EV, Kia Niro EV, etc. Tesla Model S or X are not in top ten, and VW e-Golf and ID.3 together sold more than Tesla Model 3 despite the horrendous delays with ID.3 and e-Golf being a six-year-old model.
This year will see a lot of toughening competition for Tesla. Tesla is not able to beat the competition with Model Y by being there first, as there will be a big bunch of other new models in the same segment (completely missing from '20 statistics). Model S/X are aging, and competitors such as Porsche, Audi, M-B EQ, etc. are not to be taken lightly.
I am not saying Tesla would not be an important manufacturer or in a good position. What I am saying is that it does not have a dominant position globally even today, and much less in the future. The US is different, and the European manufacturers have not usually been too successful on that side of the pond. However, the Asian manufacturers are coming (Nissan Ariya, Lexus EVs, Hyundai Ioniq family), and they have a very good track record in the US.
It is a fragmented market, and it is very difficult to gain a dominant position. This is important also from the Apple Car point of view. It may be successful, but not dominant.
From what I can see, a lot of companies employ elder gentlemen who don’t think with a more modern mindset. That’s why most big companies react so slow to new more agile companies coming in and disrupting the market. By the time they react it’s too late.