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All discussion of Apple EV

heltok

Active Member
Aug 12, 2014
1,232
10,427
Sweden
The difficult part for Apple and any Tesla competitor is making a car that is equal or better than a Tesla for around the same price and making money.

It is fairly unlikely Apple or their partner can build the non-software part of the car cheaper than Tesla, Tesla already has all the software they need including FSD.

Apple (or whoever) has to develop the software and compete in the market place.
Outside of the cars themselves, software (FSD) and entertainment are potential income streams.

I think Apple would be happy to more or less break-even on the car, and would aim to make money from the software.
But it is a tough business, simply making the car compelling via software is hard, a combination of software and hardware is needed.

In addition, how does the car supplier make money?

There are 2 options:-
  1. Mark up the cost of the car.
  2. Take a cut from software revenues.
IMO it is no accident some of the companies dealing with Apple have asked for a slice of the software revenues.

Contrast this to Tesla, they already have the software revenues, so they have scope to price the car competitively, if they really need to.

So Apple might (or might not) end up being a competitor, there is plenty of market there available for all at present, but it is only available easily for the next 3-5 years. Arriving when the guests are leaving the party, or when the Super Bowl is over, is bad timing.
Once EVs are at saturation close to 100% of new car sales, we will have competition, that isn't a great time for a new player to enter the market.

If Apple want to make the car themselves to have control over the design, I assume that they will either
1. Use Foxconn/Magna Steyr
2. Buy some automaker outright like they did with Beats

Do you guys see any other option? I still think Apple making software and FSD hardware for everyone as the most likely possibility.
 

MC3OZ

Active Member
Jul 25, 2019
2,305
12,920
QLD Australia
If Apple want to make the car themselves to have control over the design, I assume that they will either
1. Use Foxconn/Magna Steyr
2. Buy some automaker outright like they did with Beats

Do you guys see any other option? I still think Apple making software and FSD hardware for everyone as the most likely possibility.

Option 2. Buy an automaker outright is the best option IMO.

Otherwise the car will be high priced before Apple adds anything to it.
 

Mo City

Active Member
Jul 17, 2016
1,910
11,671
near Houston
Apple buying an OEM absolutely will not happen.

They will either find a subservient partner (perhaps softening their demands) or give up.

IMO, first one is very likely.
 

mspohr

Well-Known Member
Jul 27, 2014
9,616
11,411
California

Poor, poor Apple. The world’s richest company (it slides up and down, but it’s always hovering near the top) wanted only to find an automaker to be its dancing partner for its autonomous, electric car project. It probably envisioned the likes of Hyundai and Nissan would fall over themselves for the mere opportunity to contribute all their latest technology and manufacturing expertise to a vehicle for which they’d receive no credit in the marketplace.

Well, what a surprise — it hasn’t happened. After Hyundai wrangled with (and leaked) a potential partnership, and then Nissan was rumored to have done the same, Apple’s met with a handful of carmakers with nothing to show for it. Now it has little choice but to turn to a contract manufacturer, like Magna Steyr or its familiar friends at Foxconn, according to a new Bloomberg report.
 

mspohr

Well-Known Member
Jul 27, 2014
9,616
11,411
California
Foxconn says it might revive Wisconsin plant to make electric cars
In February Young pledged two or three EV’s using the platform by the end of this year. On Tuesday he said the company aimed to eventually provide 10% of all EV production, and indicated the company was in partnership talks with at least one other US company. Young declined to name the company but said they were not a traditional vehicle manufacturer.
 

MXWing

Well-Known Member
Oct 13, 2016
7,448
19,528
USA
Mama Cathie not enthused about the Apple i-KIA.

Sold out all of AAPL.


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