No. of Recommendations: 3
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Not for nuthin’, but I do wish they had gotten into the EV business ...
Why? They would have an increased capex of tens of billions and overall gross margin would have dropped like a rock. The auto business is just not a particularly good business. And even if segments of it becomes a good business, that only lasts for a relatively soft time because all the competitors flock to those segments and commoditize it. I've been an Apple shareholder for decades and I don't think this would have been a good idea for the business.
It would have been nice to have a level headed new entrant with design sensibilities, brand recognition, and US ownership take a shot at it. They would have had the cash to make it happen, and an eager customer base ready to pounce.
As I've discussed many times over the years, I would have absolutely LOVED an Apple car. If it worked as well as my iPhones did, it would have been a joy to own. However, I strongly suspect that in order to make it a joy, it would have to be priced significantly above my price range for a car, for any car. So in the end, I wouldn't have enjoyed it at all, other than perhaps a short-term rental to salivate over it for a few days. And because the price range would be so high, volume would be relatively low, and it would never become mass market enough to produce large profits. Again, not a good idea for the business.
I spent $1400 on my last iPhone and was rather uncomfortable spending that much on a mere phone. But at least I could put it in my pocket, put a protector around it, and have an excellent warranty. But heck, I would never leave it out on the street or in a parking lot somewhere!
