Apple Car!

Apple is supposedly working on an Apple car.

Well...this does not seem to be promising for three reasons.

First, the auto industry is quite competitive and have low profitability. Even with the recent increase in profitability, cars are inherently low profit. Also, it is hard to make people buy multiple cars and upgrade them every two years....

Second, remember apple maps fails? Yup, expect more trials and errors in making Apple cars. Yes, there will be Apple cars catching fire just like the Teslas.

Third, the younger generation are driving less and do not necessarily believe in car ownerships. This is one of the reasons, the famous hedge fund manager, Jeff Gundlach is bearish about car companies in the long term. So I am not sure why Apple wants to enter this declining industry and how it plans to revitalize it.



So why is Apple trying to make an Apple car?

Well, Apple is an innovative company and is trying out new things. Also, bringing new talents and perspective is likely to be a big plus for Apple in developing new strategies and products. A more sinister reason is that Tim Cook is trying to make his own mark on Apple. This may be a pet project. Or this may be a very clever strategy to mislead its competitors....

With $178 billion in cash, I would like  Apple to focus more on building stronger phones that don't shatter and have longer battery. I have seen too many shattered screens and people messaging me that their phone is dying and won't be able to respond.