MG Siegler: It Would Be Weird If Apple *Wasn’t* Working On A Car
That statement is based on nothing other than the laws of common sense. Apple currently sits atop all other companies at the absolute pinnacle of business. They’re now making more money than any other company has… ever. They’re the first company valued over $700 billion, with sights firmly set on $1 trillion.
Which is why making a car makes no sense in Apple’s part.
Why would Apple get into a business on their own where there is such a wide margin of error in making a new product? So many regulations, so many things to take into account, so many possibilities for a mistake that will more than likely be a deadly one. Even major car companies like GM, Ford, Toyota and BMW have had to deal with massive recalls on vehicles due to errors in manufacturing or a car part that went rogue.
These are companies that have existed for over a hundred years, with making cars as their number one objective, and these types of recalls and errors still take place.
For Apple to step in, without any past experience or personnel of having to deal with the car world, would be a very difficult task.
Apple, however, can step in using another method: buy their way into the industry. As Siegler pointed out in his post, Apple is sitting on top of quite a bit of cash. Instead of starting a car company from scratch, they should outright buy a company like Chrysler – or even GM, but that’s more far-fetched than a smaller company like Chrysler. Tesla is also a possibility, but Elon Musk has already ruled that possibility out.
If Apple were to buy a company like Chrysler, they already have all of the infrastructure set up to do everything they’d like to in regards to cars. Apple ownership would exhort greater quality control over the cars, and eventually come in and create their own when the time is right.
A reminder that this is the same company who “had” to buy Beats for over $3 billion last year so they can finally build a subscription music service of their own. Now people expect them to make a car without buying a car company?