Why the Apple car shouldn't excite you
Well, it shouldn't, at least, if you're in the overwhelmingly large group of people who quite frankly won't be able to afford it. Also, it doesn't currently exist. Like the Apple Watch, the existence of Apple in the market means nothing. And it means even less when there isn't a tangible product to even start considering. It feels like a fairly large group of people have just automatically assumed that they will like it regardless.
But affording it is likely to be the real problem for the most people if the thing materializes and people do love it (legitimately or otherwise). This is all speculation of course, but we know a few things about Apple and we have some tidbits of information about this supposed car. And what we know doesn't bode well for most people.
Lets start with Apple. To date, the original iPad has been the only time Apple entered the market with a competitively priced product. But even then, it was partly because the market segment didn't exist yet. I believe Apple was simply being cautious with the iPad price after Microsoft's tablet failures before them. Virtually everywhere else Apple is making huge margins and marketing devices as premium hardware. In fact, of late Apple has been trying to push prices upwards.
It seems very likely to believe that the same will be true of any car efforts. Unlike the iPad at its launch, there is already a proven market for cars. And, even more telling, the affordable car market is over crowded and margins suck. Apple would be idiotic to try and sell a value car simply based on the market and who they are as a company. Apple represents one of the few companies in the world that could get away $200k+ car without any automotive history. They'd be daft not to focus on the luxury market.
But, I'm not relying on JUST who Apple is as a company. Supposedly they are using a BMW electric car as the basis for their designs. BMW + Electric + Apple. I'm sorry fan boys, but if you were expecting to be able to actually afford this car, you're off your rocker, unless you happen to be pretty damn well off. Electric cars of any variety have a starting price WELL above any typically affordable vehicle. The same goes for anything BMW related. And the same goes for anything Apple related.
Detour: The BMW i3 seems like an affordable car, until you consider what it is. At a nearly $45K+ CAD starting price it seems rather reasonable for an electric BMW (some other brands offer electrics in the same range). But the car, size-wise is more on par with Smart car, which starts off at $15K+ CAD. The BMW, being electric also needs to subtract space from an already minuscule frame to support batteries which the Smart doesn't need as it is diesel. Its just a giant, fast, golf cart. And one that costs almost $45k+.
My prediction; if this car materializes, the starting price will put it somewhere in the ballpark of a mid-model Tesla Model S ($85k CAD) with options leading upwards of $200k. Don't expect Apple to try and undercut Tesla or BMW because Apple rarely tries to under cut anyone on price and Tesla and Apple appeal to very different people and would have very different target markets. Even with an all electric vehicle, I don't expect Apple to cannibalize Tesla sales any more than an all electric BMW would. In fact, it is much more likely that an Apple electric vehicle would cannibalize BMW sales.
Also, don't expect to reap the financial benefits of Apple revolutionizing automotive production. It isn't that I think that an impossibility. In fact, quite the opposite. Much of the automotive industry is built on very old foundations. There is undoubtedly a lot that can be improved, and if Apple wants to get into this market they will undoubtedly try and improve on the process anywhere they can as it will be hard to revamp once they get started. What I'm saying is, don't expect to reap any benefits, because Apple has never passed savings onto the consumer.
I'm not a huge fan of Apple, as most people can readily tell, but a large part of that is that I don't care about status symbols or what is fashionable. I buy a device based on its intrinsic value to me. The only value Apple adds for the extra price you pay for their products lies in aesthetics and social recognition. Neither of which I particularly care for. I drive a Hyundai. I could easily have afforded a Mazda or Toyota or some domestic variant of my current vehicle... but I didn't because those other vehicles JUST cost more. They don't offer more features for the price, and many offered less features at much higher prices.
An Apple car won't be any different than those cars which I opted not to buy. It will cost more without adding a tangible enough benefit to justify the price tag. However, like those other cars, Apple will likely be successful. Lets face it, there are enough affluent Apple fans, and the company has the money to burn to keep the business afloat long enough to correct any serious design or strategy flaws. Cars are also much more phone like, market-wise than tablets or watches. There is a huge industry around financing them, marketing them, making sure people feel the need to continually buy and upgrade them and they are ubiquitous. It seems like a perfect market for Apple.
But affording it is likely to be the real problem for the most people if the thing materializes and people do love it (legitimately or otherwise). This is all speculation of course, but we know a few things about Apple and we have some tidbits of information about this supposed car. And what we know doesn't bode well for most people.
Lets start with Apple. To date, the original iPad has been the only time Apple entered the market with a competitively priced product. But even then, it was partly because the market segment didn't exist yet. I believe Apple was simply being cautious with the iPad price after Microsoft's tablet failures before them. Virtually everywhere else Apple is making huge margins and marketing devices as premium hardware. In fact, of late Apple has been trying to push prices upwards.
It seems very likely to believe that the same will be true of any car efforts. Unlike the iPad at its launch, there is already a proven market for cars. And, even more telling, the affordable car market is over crowded and margins suck. Apple would be idiotic to try and sell a value car simply based on the market and who they are as a company. Apple represents one of the few companies in the world that could get away $200k+ car without any automotive history. They'd be daft not to focus on the luxury market.
But, I'm not relying on JUST who Apple is as a company. Supposedly they are using a BMW electric car as the basis for their designs. BMW + Electric + Apple. I'm sorry fan boys, but if you were expecting to be able to actually afford this car, you're off your rocker, unless you happen to be pretty damn well off. Electric cars of any variety have a starting price WELL above any typically affordable vehicle. The same goes for anything BMW related. And the same goes for anything Apple related.
Detour: The BMW i3 seems like an affordable car, until you consider what it is. At a nearly $45K+ CAD starting price it seems rather reasonable for an electric BMW (some other brands offer electrics in the same range). But the car, size-wise is more on par with Smart car, which starts off at $15K+ CAD. The BMW, being electric also needs to subtract space from an already minuscule frame to support batteries which the Smart doesn't need as it is diesel. Its just a giant, fast, golf cart. And one that costs almost $45k+.
My prediction; if this car materializes, the starting price will put it somewhere in the ballpark of a mid-model Tesla Model S ($85k CAD) with options leading upwards of $200k. Don't expect Apple to try and undercut Tesla or BMW because Apple rarely tries to under cut anyone on price and Tesla and Apple appeal to very different people and would have very different target markets. Even with an all electric vehicle, I don't expect Apple to cannibalize Tesla sales any more than an all electric BMW would. In fact, it is much more likely that an Apple electric vehicle would cannibalize BMW sales.
Also, don't expect to reap the financial benefits of Apple revolutionizing automotive production. It isn't that I think that an impossibility. In fact, quite the opposite. Much of the automotive industry is built on very old foundations. There is undoubtedly a lot that can be improved, and if Apple wants to get into this market they will undoubtedly try and improve on the process anywhere they can as it will be hard to revamp once they get started. What I'm saying is, don't expect to reap any benefits, because Apple has never passed savings onto the consumer.
I'm not a huge fan of Apple, as most people can readily tell, but a large part of that is that I don't care about status symbols or what is fashionable. I buy a device based on its intrinsic value to me. The only value Apple adds for the extra price you pay for their products lies in aesthetics and social recognition. Neither of which I particularly care for. I drive a Hyundai. I could easily have afforded a Mazda or Toyota or some domestic variant of my current vehicle... but I didn't because those other vehicles JUST cost more. They don't offer more features for the price, and many offered less features at much higher prices.
An Apple car won't be any different than those cars which I opted not to buy. It will cost more without adding a tangible enough benefit to justify the price tag. However, like those other cars, Apple will likely be successful. Lets face it, there are enough affluent Apple fans, and the company has the money to burn to keep the business afloat long enough to correct any serious design or strategy flaws. Cars are also much more phone like, market-wise than tablets or watches. There is a huge industry around financing them, marketing them, making sure people feel the need to continually buy and upgrade them and they are ubiquitous. It seems like a perfect market for Apple.
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