Apple has never gotten into a business in which it could not differentiate itself and sell products with a strong profit margin. Chances are that before even putting together that top-secret research lab, Apple did some due diligence on the project to see how it could set itself apart from the competition.
No one will buy iPhone --Steve B.
pfisher wrote: »
They could wipe out everyone with low-margin devices: laptops, phones, tablets...
But, in the end that would probably not be a sustainable business. And you don't want to be so big it's not feasible.
True. But I don't even know if Apple could lower the prices of their phones if they wanted to. I mean, they're barely managing to meet demand with the ASP as it is now. A cheap iPhone would wipe everything else off the map, the only issue would be that Apple would not be able to manufacture at that capacity.
Phones weren't not a growth industry, but smart phones were...
Cars are not a growth industry, but electric cars are.
Maybe he is forgetting that cars are getting more and more to be computing devices and thats what Apple know about, and what existing car companies know squat about. integration and security.
I think Apple should buy the IP of TVR and use their designs. The only car company i have ever experienced that design like Apple do, down to putting the petrol cap in the boot so it doesn't spoil the outside lines of the car. Brilliant. The dash of the Cerbera is just pure genius too
Either way, this guy just tanked his worth. Whats funny is that if Apple are getting into automotive, we won't see anything for about 3-4 years. Look how long the rumours about the Apple TV are floating about and how long the Apple Watch was in development. Event the iPad and iPhone started many many years before making an appearance. Thats the Apple way.
Would be cool if Apple teamed up with Solar City and Musk to develop the home-scale battery technology that is to be revealed soon (this week?).
I gotta say, as someone who has a business selling big heavy fragile products, I always thought it was genius of a company to sell millions of little gadgets with no moving parts. Little gadgets with great margins. I think it's genius. To go from that to jumping into selling heavy, fragile products and all the liabilities that go with it, and with much lower margins ...not so much.
How about fully integrated urban transportation systems that are completely flexible? Where the mode of transport is a specially designed vehicle integrated into the entire electronic system: from your iPhone to the zero emission vehicle picking up and delivering you and back again. The 80% of Americans that currently live in an urban area are arguably very underserved with point to point convenient, safe and environmentally friendly transportation. As a thought.
Things people said Apple can't do and will fail at:
- mass computer sales
- music & movie sales
- music (mp3) player
- TV/video/media player (AppleTV)
- possible car*
*success remains to be seen -- so far Apple is batting close to a 1000
Being a CEO's easy. Go to the KvK, declare your BV, voilà, you're a CEO.
Being a good and successful CEO, now... that's quite another matter.
If this guy thinks he can give lessons to Tim Cook, he's probably wrong. However, I'm pretty curious what he actually said. Too often does the press report only inaccurate or incomplete statements from people.
Albeit another diamond filled gold leafed hairball.
AppleInsider wrote: »
"If I were an Apple shareholder, I wouldn't be very happy. I would be highly suspect of the long-term prospect of getting into a low-margin, heavy-manufacturing business."
AppleInsider wrote: »
"[Apple] better think carefully if they want to get into the hard-core manufacturing," he added. "We take steel, raw steel, and turn it into car. They have no idea what they're getting into if they get into that."
AppleInsider wrote: »
The <em>Wall Street Journal</em> <a href="http://appleinsider.com/articles/15/02/13/apple-has-several-hundred-workers-designing-new-electric-car-codenamed-titan---report">weighed in</a> later, claiming that Apple CEO Tim Cook gave the go-ahead for iPod and iPhone designer Steve Zadesky to assemble as many as 1,000 workers to make an electric car. Zadesky's group is though to be researching "robotics, metals and materials consistent with automobile manufacturing."
I believe you're right. Seems someone said something about Apple having no experience in the telcom business, the margins are thin due to the amount of established competition, and besides, "The telcos dictate everything to the cell phone manufacturers and won't give up that power to anyone."
Various leaders in the cell phone industry had their little laugh and then were handed their asses on a plate. Apple did what everyone in the industry thought was impossible, and now they rule.