Yes I read the article.
Phones and cars, ok. Apple has a decent share of the global phone market. Relatively low, but still a decent share. So it sells a large number of one option phones. Production is aided by no option phones, so thats efficient an large volume. Does Apple expect to relate a no option car and it will produce huge numbers for its debut? Hard to see that.
If cars have a low margin, production efficiencies are not going to shave huge percentages off the build cost.
Due to Apples hype machine, many buy Apple phones because of prestige, the cool factor. There is also a lock in to the eco system.
Cars, one model, every car the same, made by a non car manufacturer (yes they will buy one, but its still like a Panasonic truck)
iPods, well it wasnt the iPod that made the iPod it was the iTunes disruption to the industry.
Perception. A Panasonic truck, an Airbus Home Theatre, a Chevrolet fridge? Thats a barrier. people want a real car, that takes time.
They also want options
So, a luxury car at $125000. Apples equivalent on spec will be much more expensive if they want a margin. But same car.
IMHO its a lot of hard work in an industry thats tight. Tesla is aiming for the mass market I think? More cars, more money. Luxury cars owners are probably more discerning as well.
From: "Kris Murray krismurray@gmail.com [iPad]" <iPad@yahoogroups.com>
To: iPad@yahoogroups.com
Sent: Thursday, 3 December 2015 4:16 PM
Subject: Re: [iPad] Why Apple should make an Apple car, according to a former Apple executive
How does the margin work with phones for apple and no one else? Hrm. Presumably this is how the situation would work with cars. Did you read the article? It's expensive to make VWs because of too many build to order options. Apple won't do that. Recall the first iPod. One size. One color. The first car. Same thing. One car. One color. No options.. By doing what they did to other industries to the car industry. The margin is huge for luxury cars. Apple will play the luxury car market. Just like the luxury phone market. Presumably they would compete with tesla. But don't listen to me. Read what the ex Apple employee had to say.
~KLM
\\ "Antisocial behavior is a trait of intelligence in a world full of conformists" ~Nikola Tesla //
So how does the margin get increased? Higher price with nothing in return for the consumerThere is no option to get a good deal on bulk buy as sales will be low for a variety of reasons
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Posted by: Tony <tdale@xtra.co.nz>
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