AppleInsider Staff
As the CarPlay rollout slowly marches on and rumors swirl around a possible Apple-branded electric car, Apple operations chief Jeff Williams on Wednesday referred to cars as "the ultimate mobile device."
"The car is the ultimate mobile device, isn't it?" Williams said at Re/code's Code Conference, responding to a question about which new markets Apple is looking at. "We explore all kinds of categories. We'll certainly continue to look at those, and evaluate where we can make a huge difference."
Williams was referring to CarPlay, but his comments are sure to add fuel to the Apple Car fire.
Rumors of an Apple car first surfaced in February of this year, with reports that the iPhone maker was preparing to "give Tesla a run for its money" with a new electric vehicle. Apple is thought to have "several hundred" workers on the car project, which is said to be codenamed "Titan."
The rollout of CarPlay, meanwhile, continues to expand. At the same conference, GM CEO Mary Barra announced that CarPlay would come to 14 Chevrolet models for 2016.
Charles Martin
Christine McKee
Wesley Hilliard
Malcolm Owen
Andrew Orr
William Gallagher
Sponsored Content
36 Comments
Of course Williams is going to say he was talking about CarPlay. That will be the standard answer as Apple doesn't want to give anything away. But the question was about the next $10-$20B business. That won't be CarPlay.
Of course Williams is going to say he was talking about CarPlay. That will be the standard answer as Apple doesn't want to give anything away. But the question was about the next $10-$20B business. That won't be CarPlay.
Kinda small for a car business though.
Jobs commented in his biography, when asked who else did vertical integration the way they did, that the car companies were the most clear example. And it's true; while they don't build as much anymore, and they do use off the shelf components in some cases (tires, glass) they do typically design things and have someone else build to their specifications.
(Of the main US brands, Ford designs and builds the most, Chrysler the least, with GM somewhere in the middle)
Basically, I'm saying that Apple's culture translates well to building automobiles.
Basically, I'm saying that Apple's culture translates well to building automobiles.
Apple may very well build a car someday, and while I agree the business model translates similarly, it differs in one very big way -- the car business is by and large a capital intensive, low profit margin, business. The premium automakers make something in the realm of around 6-10% any given year, while most automakers make something less than 5%. In other words, Apple will have to invest heavily to launch the business, only to receive little in return, forcing them to recoup in volume sales, like the rest of the car makers.
"Apple Car fire"? Now there's a gigantic assumption.
[quote name="Mac_128" url="/t/186447/apples-jeff-williams-calls-cars-the-ultimate-mobile-device-in-discussion-on-carplay#post_2727722"]Apple may very well build a car someday, and while I agree the business model translates similarly, it differs in one very big way -- the car business is by and large a capital intensive, low profit margin, business. The premium automakers make something in the realm of around 6-10% any given year, while most automakers make something less than 5%. In other words, Apple will have to invest heavily to launch the business, only to receive little in return, forcing them to recoup in volume sales, like the rest of the car makers. [/quote] When has low profit margins stopped Apple from entering a market? Last time I checked the profit margins for PCs, smartphones and tablets aren't that great for companies not named Apple. And who's to say the car of the future will be anything like the car of the present?