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> Why on earth would Apple want to build a car? I am wondering about the same question. Cars are not a high-margin business.
by smnrchrds 5y ago
> Why on earth would Apple want to build a car?
I am wondering about the same question. Cars are not a high-margin business.
- dduugg 5y agoThis was true of smart phones until Apple came along. It's still the case for non-Apple manufacturers: https://www.forbes.com/sites/johnkoetsier/2019/12/22/global-phone-profits-apple-66-samsung-17-everyone-else-unlucky-13/ https://www.forbes.com/sites/johnkoetsier/2019/12/22/global-...
- smnrchrds 5y agoApple's margins are high not because its production costs are much lower than others, but because it has premium pricing. Average cost of a new car in close to 39k USD. How much more can people possibly afford? It's easy for Apple to take the market for 100$ phones and create a market for 1000$ ones. It is much harder to find a market for 390k$ cars.
- dharmab 5y agoThere is a market for $3 million cars in 2021.
- ssijak 5y agoYeah wait till we see the price of some self driving 50kw tops ricksha size vehicle Apple will produce.
- dharmab 5y agoCars? No. Luxury cars? Possibly.