You mean like all the watchmakers around the world who have now disappeared forever since the launch of Apple Watch?
interesting you say that, because i was just thinking about how this story reminded me about all the "Apple to partner with Swiss watchmakers" stories. we all know how that turned out.
So what is Apple really doing? Are they setting up bogus meetings to glean industry insights? Are they really considering some level of partnership? everything i know about Apple tells me no, they're not really pursuing a partnership. there has to be more than meets the eye here. or maybe I'm just looney toons.
Looking at their website, I'm not totally clear on their services: are they doing all the manufacturing for the cars displayed - the MINI Countryman and Paceman, the Peugeot RCZ and the Mercedes Benz G class? Or did they just provide services to design and/or set up the production lines in the respective car company's factories? Hard for me to believe that Mercedes, for example, doesn't manufacture their own model.
I might be in the minority, but as I've said many times before I really don't think Apple is going to build a car. Partnering with someone and sticking an Apple logo on an existing car and controlling the entertainment systems, maybe. Car manufacturing is extremely low margin and requires huge capital investment. And you can't farm out the manufacturing - you have to open your own plants (at least no company so far has farmed out their manufacturing). Most of the profits in the car industry come from selling financing and accessories.
Ummm, wrong. Magna Steyr. Look it up. Car manufacturing most definitely can and has been outsourced.
Looking at their website, I'm not totally clear on their services: are they doing all the manufacturing for the cars displayed - the MINI Countryman and Paceman, the Peugeot RCZ and the Mercedes Benz G class? Or did they just provide services to design and/or set up the production lines in the respective car company's factories? Hard for me to believe that Mercedes, for example, doesn't manufacture their own model.
Your belief is irrelevant. Multiple manufacturers have outsourced building of some of their cars to Magna. They have their own factories and build some of the same cars that the car companies themselves build at other manufacturing facilities...including BMW.
Your belief is irrelevant. Multiple manufacturers have outsourced building of some of their cars to Magna. They have their own factories and build some of the same cars that the car companies themselves build at other manufacturing facilities...including BMW.
Your belief is irrelevant. Multiple manufacturers have outsourced building of some of their cars to Magna. They have their own factories and build some of the same cars that the car companies themselves build at other manufacturing facilities...including BMW.
Yes, contract manufacturing of cars is the way of the future (or even of now). Just like contract fabbing or contract assembling.
The key differentiator will design and software/electronics + key differentiating hardware, just like in the smart phone industry.
Most of the things in cars are, lets face it use well worn technology.
You mean like all the watchmakers around the world who have now disappeared forever since the launch of Apple Watch?
Clearly we don't know what the long term impact will be, but it does take a few years to see it. RIM and Nokia weren't impacted by the original iPhone after a quarter, but they sure were after 4 years. Don't get caught up in blogger and CNBC short-term analysis.
Buy Tesla. Own the "gigafactory". Build all Apple device batteries in the U.S. Build cars in the U.S. Have a network of several thousand high speed charging stations already built out. Tesla and Apple have always seemed a compatible fit. If Apple is serious about cars, Tesla brings a lot more to the table than a partnership with BMW.
Good idea, except Musk is a Google fan. He has personal ties that go way back with them. Then again, he might be getting antsy with Tesla's poor balance sheet and sales. He's got Spacex to deal with and there is the Hyperloop project he says he wished wasn't publically known.
I'm a skeptic. The very traits that make a company successful in one area often make it ill-adapted for other areas.
It's easy to be a skeptic.
It's a simple profession that you don't have an answer.
But that's ok. In this fast moving world where a legitimate game changing product or service seems to introduced multiple times a year, I'm not sure even the people with answers have the answers anymore.
That said, an automobile is a transport system. Apple is very good at systems. They find the reason for being and take the simple, effective, and reliable way to accomplish that reason for being. A car is simply hardware. Nowadays it a collection of hardware and software. Apple excels at both. Apple has traditionally been dealing with very small hardware with parts that move very little or not at all. This is new for them. But that may also be a good thing. No longer stuck in the past by tradition that refuses to modernize.
I believe they'll nail it. It's not blind faith. It's based on history of new category attempt success along with the corporate culture of solving problems no one else thinks is an issue. and the BMW tour is likely one of many auto manufacturers.
I'm a skeptic. The very traits that make a company successful in one area often make it ill-adapted for other areas.
It's easy to be a skeptic.
It's a simple profession that you don't have an answer.
But that's ok. In this fast moving world where a legitimate game changing product or service seems to introduced multiple times a year, I'm not sure even the people with answers have the answers anymore.
That said, an automobile is a transport system. Apple is very good at systems. They find the reason for being and take the simple, effective, and reliable way to accomplish that reason for being. A car is simply hardware. Nowadays it a collection of hardware and software. Apple excels at both. Apple has traditionally been dealing with very small hardware with parts that move very little or not at all. This is new for them. But that may also be a good thing. No longer stuck in the past by tradition that refuses to modernize.
I believe they'll nail it. It's not blind faith. It's based on history of new category attempt success along with the corporate culture of solving problems no one else thinks is an issue. and the BMW tour is likely one of many auto manufacturers.
You're forgetting one fact. Apple was successful by going into immature to almost nonexistent markets. Before Apple created the iPhone all other smartphones sucked, and before the iPad the tablet market was almost nonexistent, and the tablets the did exist were god awful.
The same is not true in the automotive market. It's a very diverse market in which most people don't think their car sucks, and does that do cannot afford to buy a new one. I don't doubt Apple can do something great but will it be enough to get people to switch? I have serious doubts about that.
Good idea, except Musk is a Google fan. He has personal ties that go way back with them. Then again, he might be getting antsy with Tesla's poor balance sheet and sales. He's got Spacex to deal with and there is the Hyperloop project he says he wished wasn't publically known.
It should be noted that not long after the recent SpaceX rocket explosion, Musk said that was a very costly error. As far as I know, SpaceX still operates without a profit and it wouldn't take too many accidents to destroy their business entirely.
Comments
BMW doesn't have anything to fear from Apple. They have just as die hard fan base as Apple does.
interesting you say that, because i was just thinking about how this story reminded me about all the "Apple to partner with Swiss watchmakers" stories. we all know how that turned out.
So what is Apple really doing? Are they setting up bogus meetings to glean industry insights? Are they really considering some level of partnership? everything i know about Apple tells me no, they're not really pursuing a partnership. there has to be more than meets the eye here. or maybe I'm just looney toons.
You need to familiarize yourself with Magna International.
http://www.magna.com/capabilities/vehicle-engineering-contract-manufacturing/product-services/contract-manufacturing/complete-vehicle-production
Looking at their website, I'm not totally clear on their services: are they doing all the manufacturing for the cars displayed - the MINI Countryman and Paceman, the Peugeot RCZ and the Mercedes Benz G class? Or did they just provide services to design and/or set up the production lines in the respective car company's factories? Hard for me to believe that Mercedes, for example, doesn't manufacture their own model.
I might be in the minority, but as I've said many times before I really don't think Apple is going to build a car. Partnering with someone and sticking an Apple logo on an existing car and controlling the entertainment systems, maybe. Car manufacturing is extremely low margin and requires huge capital investment. And you can't farm out the manufacturing - you have to open your own plants (at least no company so far has farmed out their manufacturing). Most of the profits in the car industry come from selling financing and accessories.
Ummm, wrong. Magna Steyr. Look it up. Car manufacturing most definitely can and has been outsourced.
Looking at their website, I'm not totally clear on their services: are they doing all the manufacturing for the cars displayed - the MINI Countryman and Paceman, the Peugeot RCZ and the Mercedes Benz G class? Or did they just provide services to design and/or set up the production lines in the respective car company's factories? Hard for me to believe that Mercedes, for example, doesn't manufacture their own model.
Your belief is irrelevant. Multiple manufacturers have outsourced building of some of their cars to Magna. They have their own factories and build some of the same cars that the car companies themselves build at other manufacturing facilities...including BMW.
BMW, start your copiers!
They are the Foxconn for car companies.
Yes, indeed, the Audi S5 Cabriolet is a thing of beauty.
If it had CarPlay, I would buy it right now.
Your belief is irrelevant. Multiple manufacturers have outsourced building of some of their cars to Magna. They have their own factories and build some of the same cars that the car companies themselves build at other manufacturing facilities...including BMW.
Yes, contract manufacturing of cars is the way of the future (or even of now). Just like contract fabbing or contract assembling.
The key differentiator will design and software/electronics + key differentiating hardware, just like in the smart phone industry.
Most of the things in cars are, lets face it use well worn technology.
More like Apple start your copying.
Good idea, except Musk is a Google fan. He has personal ties that go way back with them. Then again, he might be getting antsy with Tesla's poor balance sheet and sales. He's got Spacex to deal with and there is the Hyperloop project he says he wished wasn't publically known.
It's easy to be a skeptic.
It's a simple profession that you don't have an answer.
But that's ok. In this fast moving world where a legitimate game changing product or service seems to introduced multiple times a year, I'm not sure even the people with answers have the answers anymore.
That said, an automobile is a transport system. Apple is very good at systems. They find the reason for being and take the simple, effective, and reliable way to accomplish that reason for being. A car is simply hardware. Nowadays it a collection of hardware and software. Apple excels at both. Apple has traditionally been dealing with very small hardware with parts that move very little or not at all. This is new for them. But that may also be a good thing. No longer stuck in the past by tradition that refuses to modernize.
I believe they'll nail it. It's not blind faith. It's based on history of new category attempt success along with the corporate culture of solving problems no one else thinks is an issue. and the BMW tour is likely one of many auto manufacturers.
You're forgetting one fact. Apple was successful by going into immature to almost nonexistent markets. Before Apple created the iPhone all other smartphones sucked, and before the iPad the tablet market was almost nonexistent, and the tablets the did exist were god awful.
The same is not true in the automotive market. It's a very diverse market in which most people don't think their car sucks, and does that do cannot afford to buy a new one. I don't doubt Apple can do something great but will it be enough to get people to switch? I have serious doubts about that.
It should be noted that not long after the recent SpaceX rocket explosion, Musk said that was a very costly error. As far as I know, SpaceX still operates without a profit and it wouldn't take too many accidents to destroy their business entirely.