Opinion: Why Apple should not build an iCar:
. Suffice to say that despite hiring – and losing – top automotive talent, Apple still isn’t making a car. And I believe it would be a massive mistake for Apple to build a car or even have others build it for them.
There are obvious drawbacks to getting involved in a high-cost, low-margin business that involves complex supply chains, the need to support legacy products with parts and services for decades, and the most onerous regulation of practically any industry.
With a market cap of nearly $2.5 trillion and a stash of more than $200 billion in cash, Apple has the resources to mount an attack on automotive incumbents – and even take on. The timing is right given the tectonic shift occurring in the auto industry, with the transition to electrification rewriting the rules of engagement and the growing importance of software playing to Apple’s strength.
But stacks of money and tech expertise don’t translate into success in automotive. Just ask Google, which tried – and failed – to build its own car several years ago.
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