I typed a post over at Shrewdm.com which landed with a thud (it was on the Berkshire board, which might explain it. Or not.) So I thought I’d try it here.
Tim Cook is gone, the new guy is taking over, probably shopping around for “the next big thing.” I offer “automobiles.”
Yes, I know they looked at that and after blowing a billion or ten dismissed it, but I think it deserves another look.
BYD and other Chinese manufacturers have a gigantic lead in EVs, but the US is simply prohibiting them or tariffing them out of existence in this country for one of two reasons, so far as I can see.
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The “threat” of Chinese softwares, and vehicles driving about snapping pictures perhaps of military installations, maybe of other infrastructures, possibly of blond politicians cavorting with young assistants, you never know. Or
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The threat to the American car industry, jobs, etc.
I’d like to see Apple offer to partner with a Chinese company (or two) and strip out all Chinese software and fire up the legendary Apple code team to replace it all with good ole’ “Made In The USA” code, thereby making objection #1 irrelevant.Frankly, I suspect that would play well in Canada, Mexico, the EU and other places where Chinese antipathy might present a problem. And surely there’s nothing that Chinese bits can do that other home-grown code can’t, right?
Objection #2 is harder, as the UAW is sure to have a conniption fit, and who could blame them.
On the other hand, there is surely enough margin between what Chinese vehicles are selling for in China vs the competition on this side of the Pacific to allow a joint venture, giving BYD et al a foothold in the Western market and allowing Apple to get in the automobile business - which I point out is, by revenue, ore than triple that of the cell phone manufacturing business. (Yes, margins are lower, but then such a partnership would keep all the capital intensive stuff (like the metal) off Apple’s books, and they would only handle the softwares, which would be incredibly high margin.
Anyway, “CarPlay” is never gonna be a big deal, at least big enough to matter. This could.
Given what I read about Chinese tech and the cars now being produced there, I can imagine a line at dealerships (direct model sales?) out the door, similar to what happened when the iPhone appeared. And who wouldn’t want a sleek EV, rebadged with an Apple logo on it? Or, of course, people could continue to turn up their nose at a Chevy Bolt, and with some justification.