Jordan Kahn, writing for 9to5mac:
Evident by this long list of automotive experts, it’s clear Apple’s ambitions go well beyond just its iOS-based CarPlay in-dash system. Well beyond software too, as many of the names below are hardware engineers coming from Tesla, Ford and other notable automotive related areas. In fact, the majority of employees on this list that are reporting to team leader Steve Zadesky come from an automotive hardware background and many only joined Apple recently or around the time Cook reportedly approved the electric car project.
Jordan did a great job pulling together the list of Apple’s recent auto-related hires, along with some background for each one.
The list looks impressive, but there’s still so much about an Apple car that doesn’t make sense or is just plain counter to the post-Jobs Apple Way. My main arguments against the idea of Apple making a car are still that designing a car is outside Apple’s core competencies, building a car is TOTALLY outside Apple’s core competencies, selling a car they make is impractical/illegal in most, American, markets, and finally designing, building, and marketing a car is plain and simply a low-margin, high-cost enterprise with enormous financial risks and limited upside. When a car exec would rather have your smartphone business than his car business it’s a pretty good sign NOT to get into the car business.
Step 1: find a manufacturing source. Tim Cook would not find this challenging; it’s what he does. Step 2: Design a car. The most complicated part these days is software, so again, not a problem. It will be a very simple, elegant, small, yet expensive car that solves problems we didn’t know we had (or else it goes the way of the Apple TV). Step 3: Create the infrastructure to sell and service the car. Or find an existing network and work a deal. Or just buy a network.
Do not dismiss Tesla’s possible role in any of this, despite public statements. Do not make any assumptions, except that the battery will not be user-serviceable.
Not buying “electric car”, for the reasons matthewmaurice suggests.
Am buying “fix how broken and lame typical car electronics UX is and own that market”.
Step 1—way harder than you think. While Apple may be able to find a shuttered production line someplace, what would it cost to get it ready for production? Who’s going to run it and staff it? Apple doesn’t seem to want to employ the people that make its cash cows, why would we think they’re going to hire a lot of expensive auto workers on a long-shot?
Step 2—Ask GM, Toyota, and Takata Corp. about the gotchas of car, hardware, design, and how expensive it can be if you make a mistake. It’s a lot harder than it looks and it’s totally outside of Apple’s core competency (and don’t trot out that old phone analogy, the iPhone is far more ultraportable computer than phone, and that is definitely Apple’s core competency0.
Step 3—48 states prohibit or inhibit manufacturer direct auto sales. Just buying a dealer network isn’t really an option, without a LOT of governmental lobbying. And do we really see Apple depending on third-party dealers?
As for Tesla, I don’t see Elon selling, and even if he did I don’t see him as accepting Tim Cook as his boss. How much of Tesla is Elon Musk? Probably close to as much as Apple was Steve Jobs to ’97-’10.
I could be wrong, but I think an Apple car is far more counter-intuitive than
I could definitely see a “Cockpit experience by Apple” labeling program. The ex-GM CEO flat out said he’d have handed Apple the brand’s infotainment development on a silver platter.
In regards to the legality, if there’s one company with the pockets deep enough to plow thru the bullshit that Tesla has run afoul of, it’s Apple.
I agree about all the other aspects, however. I don’t see the benefit, but I trust that Tim Cook knows what he’s doing. You also might be thinking too specifically: building a car is outside Apple’s core competencies, but building well-designed hardware certainly isn’t. Apple’s got plenty of experience creating appealing exteriors, efficiently using interior space, and creating natural user interfaces (in this example, the dashboard).
I’d love to see what an Apple-designed car would look like, though I have absolutely on doubt I wouldn’t be getting one any time soon.
Step 2 sounds awfully similar to the “PC guys aren’t just going to waltz in and show us how it’s done” line…
Step 3 isn’t quite the impediment you’re making it out to be, either; Tesla has managed to make a decent go of it. Yes, there are some limitations and roadblocks (heh) that they’ve run into, but Apple has enough weight (and money) that they could go up against the dealerships to get those antiquated laws overturned. Also keep in mind that this is a company that waded into the smart phone market with a target of 1% market share in mind; as long as the car is profitable (and who knows what that will mean), they would potentially stand by it, even if it wasn’t available in all markets.