Interesting perspective from Dan Gallagher on an Apple car.
Apple fans may squeal at the prospect of an iCar. And Apple’s enormous financial resources — which include nearly $178 billion in cash — are often considered a ticket into any business. Questions about a foray into the automotive sector don’t revolve around Apple’s ability to foot the bill, though. They have more to do with how well Apple would take to a highly regulated industry with long design cycles, not to mention one well outside its core competency.
So it is tempting to consider such a move as a fool’s errand. Even so, Apple is making this particular gamble from a position of strength… Apple can’t afford to rest on its gold-plated laurels. Nor can it think small. Growing projected 2017 revenue by just 10% would require another $25 billion in revenue—about seven times Tesla Motors’ current annual sales.
My view is that Apple designed and built the iPhone to protect and grow the iPod business, which was about to decline as music went mobile but on non-iPod devices. Why would Apple want to build a car? What would Apple do differently than GM, Toyota, Honda, or Tesla?