{"id":36843,"date":"2022-08-24T15:08:10","date_gmt":"2022-08-24T19:08:10","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=36843"},"modified":"2022-10-14T14:47:04","modified_gmt":"2022-10-14T18:47:04","slug":"apple-car-software-and-money","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2022\/08\/24\/apple-car-software-and-money\/","title":{"rendered":"Apple Car: Software and Money"},"content":{"rendered":"<p><a href=\"https:\/\/mondaynote.com\/apple-car-software-and-money-51f86a3305d4\">Jean-Louis Gass&eacute;e<\/a>:<\/p>\n<blockquote cite=\"https:\/\/mondaynote.com\/apple-car-software-and-money-51f86a3305d4\">\n<p>Initially, one asks why Apple, whose average Gross Margin is in the 54% range (40% for hardware, more than 60% for services), would want to enter a hundred-year-old entrenched industry whose gross profit margins are in the 7% range, climbing to the mid teens for premium brands. But a closer examination reveals an exception: Tesla&rsquo;s Gross Margin recently jumped from 26.5% to 33%.<\/p>\n<p>[&#8230;]<\/p>\n<p>We now have a possible explanation for Apple&rsquo;s enduring effort to make a car against such long software odds. A profitable share of the $3.8T global car industry is well worth the estimated $1B\/year it costs to move the Titan project forward. And even if Level 5 automation remains out of reach for the entire auto industry, Apple still might decide to compete using its asset-light, software-heavy business model.<\/p>\n<\/blockquote>\n\n<p>Previously:<\/p>\n<ul>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2022\/06\/06\/ios-16-announced\/\">iOS 16 Announced<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2019\/06\/28\/jony-ive-is-leaving-apple\/\">Jony Ive Is Leaving Apple<\/a><\/li>\n<\/ul>\n\n<p id=\"apple-car-software-and-money-update-2022-10-14\">Update (2022-10-14): <a href=\"https:\/\/mondaynote.com\/apple-car-bad-idea-after-all-9468947640ee\">Jean-Louis Gass&eacute;e<\/a> (<a href=\"https:\/\/news.ycombinator.com\/item?id=32995844\">Hacker News<\/a>):<\/p>\n<blockquote cite=\"https:\/\/mondaynote.com\/apple-car-bad-idea-after-all-9468947640ee\">\n<p>But there&rsquo;s another side to the story. As the sages insist, we don&rsquo;t understand a problem, an idea, a case unless we&rsquo;re able to see, to plead both sides. So, I&rsquo;ll attempt to argue that the Apple Car is a bad idea.<\/p>\n<p>[&#8230;]<\/p>\n<p>Personally, it&rsquo;s jarring to think that I&rsquo;ve joined the chorus of doomsayers who have repeatedly predicted Apple&rsquo;s failure with the Mac, the iPhone, the iPad&#8230;whatever Apple comes up, it&rsquo;s going to crash and burn. But my honest view is that the Apple Car project could be a bad idea for reasons of price, sales and service infrastructure, and technical challenges.<\/p>\n<\/blockquote>","protected":false},"excerpt":{"rendered":"<p>Jean-Louis Gass&eacute;e: Initially, one asks why Apple, whose average Gross Margin is in the 54% range (40% for hardware, more than 60% for services), would want to enter a hundred-year-old entrenched industry whose gross profit margins are in the 7% range, climbing to the mid teens for premium brands. But a closer examination reveals an [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2022-08-24T19:08:12Z","apple_news_api_id":"176c65a6-8c9b-4e59-989a-ec037980468f","apple_news_api_modified_at":"2022-10-14T18:47:07Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAAAA==","apple_news_api_share_url":"https:\/\/apple.news\/AF2xlpoybTlmYmuwDeYBGjw","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[38,2262,1351,101,1167],"class_list":["post-36843","post","type-post","status-publish","format-standard","hentry","category-technology","tag-apple","tag-apple-car","tag-artificial-intelligence","tag-business","tag-car"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/36843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=36843"}],"version-history":[{"count":2,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/36843\/revisions"}],"predecessor-version":[{"id":37337,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/36843\/revisions\/37337"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=36843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=36843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=36843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}