Why would Apple make a product with a gross margin of under 10%, a car? I just don’t understand how a car fits Apple’s business. Help me understand.
What makes you think they would price it so that they only made 10% margin?
Also, how many people know the Full Self-Driving mode in a Tesla will cost something like $10,000/year for owners? That’s right, they’re not treating it like it’s a part of the vehicle, it’s a subscription service.
very unlikely by that time & at all -1- apple does not share technology - it produces full product 2- recall maps fiasco 3- apple name is at stake - can't afford to have accidents, door or wheel falling off ... this is not same as phone bening or screen cracking or antenagate - it will be life endangerment ... unless apple is developing in some underground bunker for a decade
Why would Apple make a product with a gross margin of under 10%, a car? I just don’t understand how a car fits Apple’s business. Help me understand.
“Cars are increasingly more about electrification and electronics, areas which Apple does well. There is a lot to be gained from attempting to develop a car. It provides Apple with solutions that can be applied to other products and, at worst, even if a car does not materialize, what will happen is that Apple may well develop solutions that could be provided to various automakers. As such, even if the car project failed to bear fruit in the form of a car, the effort can yield a lot.
So what we have is Apple working on a project that has a high potential to yield benefits regardless of what Apple chooses to do with it over the long haul. It has the resources to contribute to this effort without a payoff for quite a few years, something most companies simply can’t afford.”
I see this as Apple’s new “hobby”. Almost all the patents coming out for this can be applied to other products. They’re working on something. But seems to be they’re focused on the computer and electronics of the vehicle. I haven’t seen (I could be wrong) anything car related. Like brakes, suspension systems and the like. Mostly things that can be used in present and future products (like the glasses).
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That is a gigantic opportunity for Apple.
https://www.reuters.com/article/us-apple-autos-exclusive/exclusive-apple-targets-car-production-by-2024-and-eyes-next-level-battery-technology-sources-idUSKBN28V2PY