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by solatic 2954 days ago
> It surprises to me no end that a company with $100B in funds, vast experience in supply chain and ability to suck up virtually all talent is struggling so badly at a technology that is over 100 years old

Their supply chain experience is for completely different parts. The suppliers for computer and phone parts are not the same suppliers as those for engine parts, wheel parts, etc.

Apple wouldn't just need to hire the right people - they'd need to build out the factories and supplier relationships and dealer networks and everything else from scratch. Recall that Tesla was founded in 2003, and what you look at now is the product of fifteen years of corporate development - and they're still not on the level of Detroit's Big Three.

Really, Apple would need to acquire a car manufacturer, but when you look at the market caps of various car companies - GM's is $53B, Ford's is $44B, Chrysler's is $34B, BMW's is $56B, and so on - buying a controlling stake in any one of them is doable, but constitutes using quite a lot of Apple's cash reserves. It goes to reason that there'll be opposition within Apple to using that much of the cash reserves on any one bet.

2 comments

I remember seeing an article where Aston Martin would be a perfect deal. They are doing great cars, you can see they care about quality and design beyond just the luxury segment, and they are cheap. It's valued at $7 billions [1].

I don't like the idea of Tim Cook going to BMW just because he drives and likes BMW however... I think it's a bad way to make decisions.

[1] https://www.motor1.com/news/238922/aston-martin-stock-market...

> I don't like the idea of Tim Cook going to BMW just because he drives and likes BMW however... I think it's a bad way to make decisions.

No, I think that's OP and you reading too much in that tidbit. The original quote was this:

   BMW was long Apple’s top choice, given its focus on 
   high-end but mainstream products, former employees said. 
   Many Apple executives, including the company’s chief executive,
   Timothy D. Cook, also drive BMWs. 
So BMW was a top choice not because many execs are driving them but because it's a luxury premium auto brand and sells quite well - which is very similar to Apple brand consumer electronics.

Also, Jony Ive is a car guy, he loves Aston Martins, Bentleys, Saabs and Land Rovers and have a huge collections of them. By your logic, it'd be a "bad choice" to consider Aston Martin simply because Jony Ive loves them :)

Aston Martin doesn't have the manufacturing capacity to support the demand for an Apple car. If there's anything that Tesla has proven, it's that moving from the low-volume luxury segment to high-volume is Really Hard. And while Apple products are very much luxury products, they're still luxury products produced at high volume and marketed to the mass market.
I agree. Auto manufacturing excellence is not something money or talents can buy but it takes a tremendous amount of time on top of money and talents to distill.
Tell that to Tesla.