Many of you have commented on the possibility of Apple producing an Automobile , the rumor mill has been buzzing and I have to admit that the thought of Apple producing an Electric Car is exciting.
It is true that Apple has a Team of about 200 people working on a project focusing on automobile technology. It contains many professionals from other auto industry companies including Tesla. So if you believe that Where there is smoke there is fire this is a curious fact. It may well be that all these mechanical personnel may be working on Apple’s Car Play initiative but that seems unlikely. The size of the group and the budget dedicated to it is not consistent with with the needs of Car Play.
The incident that set this Rumor viral comes from one usually respected source, Bloomberg Business. So it is important we examine that first.
The research I have done traces all this commotion back to one post in Bloomberg Business penned by Tim Higgins and Dana Hull and is mostly based on single unvalidated statement by Elon Musk qualifications to time period or context is submitted by these two “Journalists”. This is hardly First Source Journalism we should expect from Bloomberg. Take a look at the credited Musk Statement below and compare it to the immediate paragraph above it. Why the authors do not point out the same reasons for Musk “bragging” as they do for the Ford Exec Sullivan below.Take a look at the Elon Musk credited statement below and compare it to the paragraph immediately above it.
Sullivan says he doesn’t know of any former Apple employees at traditional automakers he regularly deals with. When Ford opened a Silicon Valley office in January, it highlighted the hiring of a midlevel engineer from Apple in a news release to raise its profile in Silicon Valley.
Notice how the authors credit Sullivan with boosting the credentials of his company by name dropping Apple or as I will now coin the term “Shinning the Apple” why do they not apply the same logic to Musk’s infamous statement below ? It seems just as creditable that he is also “Shinning the Apple”
Musk says Apple has been trying to poach Tesla employees, too, offering $250,000 signing bonuses and 60 percent salary increases. “Apple tries very hard to recruit from Tesla,” he says. “But so far they’ve actually recruited very few people.”
The reason I take umbrage on this piece is that it’s publication may have diverted attention away from what may really going on between Apple and Tesla.
I think that if we examine the present facts while employing the mechanics of Apple’s “Think Different” business model we may actually see what Apple is really doing and I believe it is much more exciting then the current wild rumors.
First , there exists many more reasons why Apple may not be getting into the Auto business and for a good accounting of those read the brilliant Jean Louise Gassée take on it here.
However I think Jean Louis may agree that if Apple is doing an Auto this is how they would go about it and a examination of the facts using Apple’s Think Different business model may provide hope that Apple may in fact be seriously looking at this
This has been a desire of Steve and Jony quite some time and with the power invested in Jony his wishes here will be acted upon.
Apple will design an electric car in conjunction with and manufactured by Tesla heres why and how.
1) Safety- The biggest reason for a joint approach is that Apple can not afford to risk tarnishing its brand if customers should perish in a car produced by Apple. It would crush their brand. Tesla doing the manufacturing can provide Apple cover.
2) Money- an Apple Designed and Marketed Auto will provide a world wide audience for the Electric car. Apples clout will overrule the Oil Cartel whose special interests have crushed previous attempts at weaning the world off gasoline. The profitability numbers reported by current gasoline based car manufacturers will not be relevant to the First company to produce a competitive all electric auto. From Apple’s point of view they would be disrupting a potential huge world wide market for good cause. Disregard GM Executive’s warnings, he is protecting his stock prices and walks in another time.
3) Speed – By working with Tesla, Apple can leapfrog the learning curve. Apple and Tesla are actually sharing employees each learning and aiding each other’s company. This is a practice Apple has undergone from the early days of software development. Apple could conceivably put out a car within two years.
4) Charging Station Network- Apple can take advantage of and add to Tesla’s charging station network , taking advantage of Apple’s deep contacts and clout to make deals with many different facilities from traditional gas stations to college campuses.
5) Efficiency – Apple will build or finance a production facility for Tesla as they do with Chinese electronic part manufacturers. Eventually turning it back to Tesla when needed by them or if desired Apple can buy Tesla if things work out.
6) Branding- a move like this fits right in with Apples green initiatives , Tim Cook desires to portray Apple is this green manner and this project can truthfully produce a Dent in the Universe.
All above reasons mutually benefit Tesla.
*One word about apple watch , I hear that Apple will disallow any ads on the watch , if true it could be powerful for a marketing campaign against android / google. Have any of you received similar word from developers ?
Thx for your attention , any comments will be appreciated.