Comment by steveBK123

8 hours ago

The car always made the least sense to me in that its the polar opposite of what Apple had evolved to. High-capex in-house manufacturing onshore in a highly regulated space vs capital-light outsourced contract manufacturing offshore of discretionary purchase consumer goods.

There are no successful car makers that outsource production, and even foreign car makers generally make cars onshore in US for tariff/political/regulatory reasons.

If Apple had gotten to the point of making a real product with “Titan”, all the signs were they would be engaging with a manufacturing partner in the US. Hyundai, most likely.

As for why they did it: Apple makes computers. If what you’re interacting with benefits from being a general purpose computer (under the covers or otherwise) Apple thinks they can deliver a superior experience and the margins that come with it.

I think they realized that the only computer in the car they cared about was the smartphone.

  • Maybe, but Hyundai would be antithesis of the Apple experience. Cars, even EVs.. and especially new products from new brands require a lot of after care.

    Recalls, warranty items, maintenance, accident repairs, etc.

    Hyundai still can't sort out a decent experience for their in-house luxury brand Genesis all these years later.

  • > Apple makes computers

    there's quite a bit loaded in your term of "computer" that doesn't really work. if a watch or headphones can eventually be called a computer, then a software-based car running on a battery can certainly fit under that definition.

    • Right, but clearly the tech & regulatory environment was such that the use of a general purpose computer beyond the infotainment screens wasn’t going to add enough value.

      If self-driving had worked, and a fully vertically integrated tech stack could have controlled your “mobile experience” end-to-end, maybe a different story.

      “Siri, take me to pick up Grandma from her flight. Let me know when she lands and send her an iMessage when we’re five minutes away.”

      2 replies →

The way Apple funded hardware purchases for their "OEM" manufacturers makes it hard to really say they were "capital-light."