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Traditional autos are far from Apple's core business (whatever that is. software? hardware? design?) but Tesla isn't. It's supply chain + manufacturing + softw

Traditional autos are far from Apple's core business (whatever that is. software? hardware? design?) but Tesla isn't. It's supply chain + manufacturing + software + batteries + sensor tech + gps. All things Apple has spent billions developing internally. And how many Tesla owners also own an iPhone. I bet it's something like 80%_

brmgb 7y ago
> Apple's core business (whatever that is. software? hardware? design?) Selling laptops and phones mostly segueing into digital services. > Tesla isn't. Sadly, it very much is. Tesla potential customers are not buying a Tesla in place of another batteries + sensor tech + gps. They are first and foremost buying a car.
- djtriptych 7y ago
  Let's not discount Apple's history of entering and quickly dominating huge established markets. Also, Tesla already makes and sells pretty great cars. Customers are happy. The cars are incredibly safe. What do they need now that they've successfully built the parts of the business that are outside of Apple's core competencies?
- zapzupnz 7y ago
  > Tesla potential customers are not buying a Tesla in place of another batteries + sensor tech + gps I feel like this is a poor comparison. When companies attempt to make luxury experiences affordable to the masses (yes, still more expensive, but at least within reach), the whole is greater than the sum of its parts. Of course Tesla customers aren't going out buying cars instead of batteries. But what drives people to want to purchase Teslas? They don't just want cars, they want luxury cars, they want electric cars, they want sleek and modern cars. The question is how does one build a car, make it out of the best parts so that the customer has the best experience, how does one build it inexpensively but still safely, securely, and maintaining the luxury quality. If any old car would do, they wouldn't get a Tesla, they'd get a Honda Civic. That's not Tesla's target market.
ambicapter 7y ago
> And how many Tesla owners also own an iPhone. I bet it's something like 80%_ How does that help either of them?
- djtriptych 7y ago
  you're marketing to the same people.
- zapzupnz 7y ago
  Market segments. Whether us nerds on HN agree or not, Apple has a premium feel to their products — or at least that's how non-technical people tend to perceive them. The only real attraction to a Tesla car is the deluxe nature of their marketing. Other companies are producing cheaper hybrids and fully electric cars, but Tesla isn't targeting the same market: they're going for the upper segment who're looking for a touch of elegance, sleekness, and premium quality — and therefore are willing to pay more.
sonnyblarney 7y ago
I'm really hesitant to buy the notion that supply chain - and especially manufacturing - for cars is even remotely similar to that for hardware. And the fact that Foxconn and other suppliers actually do most of the grunt work there. And there's the other end: retail. A $1K gadget you can stick in your pocket is a not a $70 thing that has all sorts of other impacts and externalities.

brmgb 7y ago

> Apple's core business (whatever that is. software? hardware? design?) Selling laptops and phones mostly segueing into digital services. > Tesla isn't. Sadly, it very much is. Tesla potential customers are not buying a Tesla in place of another batteries + sensor tech + gps. They are first and foremost buying a car.

djtriptych 7y ago
Let's not discount Apple's history of entering and quickly dominating huge established markets. Also, Tesla already makes and sells pretty great cars. Customers are happy. The cars are incredibly safe. What do they need now that they've successfully built the parts of the business that are outside of Apple's core competencies?
zapzupnz 7y ago
> Tesla potential customers are not buying a Tesla in place of another batteries + sensor tech + gps I feel like this is a poor comparison. When companies attempt to make luxury experiences affordable to the masses (yes, still more expensive, but at least within reach), the whole is greater than the sum of its parts. Of course Tesla customers aren't going out buying cars instead of batteries. But what drives people to want to purchase Teslas? They don't just want cars, they want luxury cars, they want electric cars, they want sleek and modern cars. The question is how does one build a car, make it out of the best parts so that the customer has the best experience, how does one build it inexpensively but still safely, securely, and maintaining the luxury quality. If any old car would do, they wouldn't get a Tesla, they'd get a Honda Civic. That's not Tesla's target market.

ambicapter 7y ago

> And how many Tesla owners also own an iPhone. I bet it's something like 80%_ How does that help either of them?

djtriptych 7y ago
you're marketing to the same people.
zapzupnz 7y ago
Market segments. Whether us nerds on HN agree or not, Apple has a premium feel to their products — or at least that's how non-technical people tend to perceive them. The only real attraction to a Tesla car is the deluxe nature of their marketing. Other companies are producing cheaper hybrids and fully electric cars, but Tesla isn't targeting the same market: they're going for the upper segment who're looking for a touch of elegance, sleekness, and premium quality — and therefore are willing to pay more.

sonnyblarney 7y ago

I'm really hesitant to buy the notion that supply chain - and especially manufacturing - for cars is even remotely similar to that for hardware. And the fact that Foxconn and other suppliers actually do most of the grunt work there. And there's the other end: retail. A $1K gadget you can stick in your pocket is a not a $70 thing that has all sorts of other impacts and externalities.