Apple Car Talks Aren't Happening, Say Automakers Hyundai, Kia (bloomberg.com) 43
Hyundai Motor and its affiliate Kia Motors said that they aren't in talks with Apple to develop an autonomous vehicle, responding to intense speculation about the potential new product by the maker of the iPhone. From a report: Apple paused discussions with Hyundai and Kia weeks ago about building an electric vehicle, people familiar with the matter told Bloomberg late last week. The Cupertino, California-based company has discussed similar plans with other auto manufacturers, the people added, asking not to be identified because the information isn't public. The South Korean carmakers also said in regulatory filings Monday they were in talks with multiple companies about autonomous EVs, but that no decision has been made. Shares of Hyundai, which said discussions with partners were in early stages, fell 6.2% in Seoul, while Kia slumped 15%. Reports surrounding Apple's possible foray into the global market for automobiles re-emerged recently after going quiet since development first began in 2015. Apple has sought to keep its plans for an EV shrouded in secrecy, given the project's potential to upend the industry -- similar to how its iPhones have shaken up the consumer-electronics market. There are now millions of design-conscious shoppers globally devoted to the tech giant.
That still leaves doubt (Score:4, Insightful)
So? They could still be in talks to develop an EV, with the usual minor semi-autonomous stuff now, and full self-driving sometime in the future when it actually exists.
Paused means nothing. Or at least, nothing of value to those of us trying to figure out what's happening. A pause can go on indefinitely, or end shortly.
Apple has sought to keep its plans for an EV shrouded in secrecy, given the project's potential to upend the industry -- similar to how its iPhones have shaken up the consumer-electronics market.
Apple didn't invent the first smartphone with rows of icons on the launch screen, they didn't invent installing apps from a central repository, they didn't even invent taking away the headphone jack. Apple doesn't control the smartphone market, although they do lead or split it down the middle in some developed nations where people have disposable income to waste on a phone that costs much more than the competitors' devices, but only does slightly more.
Likewise, an Apple car is not going to upend the automotive industry. If it is in line with Apple's other products it will have a short useful lifespan and a high cost, and it will be purchase by people with excess disposable income.
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If it is in line with Apple's other products it will have a short useful lifespan and a high cost, and it will be purchase by people with excess disposable income.
I am not Apple user/fan, but I am quite sure this notion may change soon. With the switch to ARM, Apple is on a clear path to making your phone a personal Mac computer that you can bring anywhere and connect(wirelessly) to a screen/keyboard. The self driving cars is an important part of this strategy. There will be many bored people commuting in self-driving cars and they will want to work or enjoy entertainment while driven. Google will try to counter this by turning your Android phone into a Chromebook,
Re: That still leaves doubt (Score:2)
"Apple is on a clear path to making your phone a personal Mac computer that you can bring anywhere and connect(wirelessly) to a screen/keyboard."
Worthless. Would need a liquid cooling port to not constantly throttle.
apple store only and no finder = crap pc (Score:2)
apple store only and no finder = crap pc
Re: (Score:1)
Are you telling me Apple followed a fucking idiotic decision instead of making that fucking idiotic decision on their own? Which fucking braindead company removed the headphone jack first?
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Oh, have no fear, there is no shortage of fucking idiotic decisions in the consumer device market. Apple probably did make that particular stupid move on their own, but like in pretty much everything else they were not the first.
I can't wait until the Apple iCar refuses to start until the passenger with the Android phone puts it in airplane mode.
It's not happening. Ever. (Score:2)
Problem with a notion of an Apple car is that it would have to be an Apple product.
I.e. Faux exclusive yet readily affordable if you can fork up the dough for an overpriced toy... with hardware that is still at least in the upper middle quality range.
Meaning that they would have to be producing VW Beetles but selling them with a Porsche-like price tag.
And while there ARE plenty of stupid people willing to spend money on that - not enough of them have that kind of money.
There's no market.
And that's before th
Re:It's not happening. Ever. (Score:4, Interesting)
That describes Tesla's vehicles.
Meaning that they would have to be producing VW Beetles but selling them with a Porsche-like price tag.
So it would be a little more expensive than the Tesla Model 3.
And while there ARE plenty of stupid people willing to spend money on that - not enough of them have that kind of money.
Check again. How many people have bought a $100K Tesla, sight unseen?
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You're right, they probably weren't the first to invent those things, but they were the first ones to put it all together into something that worked well and that large numbers of people wanted to buy. The market isn't full of flip phones, or sliders, or ones with dedicated hardware keyboards any more, and that's because of them. "Shaken up" is entirely the right way to describe it.
And as for this "short useful lifespan" nonsense, their phones still consistently get software and security updates for longer
Comparison (Score:2)
to waste on a phone that costs much more than the competitors' devices,
Ask me how I know you have never priced a Samsung phone...
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to waste on a phone that costs much more than the competitors' devices,
Ask me how I know you have never priced a Samsung phone...
Ask me how I know you have never looked at Samsung's whole range of phones...
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Ask me how I know you have never looked at Samsung's whole range of phones...
Ask me how I know you have never looked at Apple's whole range of phones...
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Maybe you should pay more attention to the road instead of fiddling with your phone.
It really says something (Score:5, Insightful)
When the shares of an otherwise healthy technology company can drop 15% on announcement that they are no longer in discussions about building a car with a company that has never built a car before.
The cult of Apple seems to be rivalling the cult of Musk when it comes to hype. That's $6bn in market cap that Apple's name alone added and removed from the value of Kia, a stable and established company that historically makes around $1.5bn a year in profit.
It's madness.
Re: (Score:2)
Well, they jumped 15% on the news too, so it was a return to normal. (Yes, percents don't work like that, but both 15%'s were approximate). It's like any other branding play - if people hear "Gucci is talking to Company X is producing Gucci coffee mugs" investors would say "Wow, they are going to sell a lot to sell a lot of units at a huge margin to a new customer base. Buy some shares of Company X"
Oops, I misspoke (Score:2)
Sorry, my example was horrible. What I meant to say is if the announcement or rumor is that Gucci is going to pay billions to Company X to set up a new Gucci coffee cup line, Company X stock will go up. I forgot that it wasn't a branding play but a strategic partnership, building a new factory, and Apple funding it.
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Oh yes absolutely. This is a return to normal, but then my post applies just as much to the initial jump.
It's like any other branding play - if people hear "Gucci
Last time I called Apple a lifestyle company people nearly bit my head off. And yet here we are, the most apt comparison between Apple and the car industry is a lifestyle company which brings nothing other than their name to the table.
Still, a small coffee company I could understand the share price moving a bit. A multinational car manufacturer... To be clear the share price should move a bit, but to thi
Re: (Score:2)
As I said in my other reply, I completely forgot to mention the literal billions of dollars Apple was rumored to be investing Kia, building a new plant with them, etc. It wasn't just a logo, it was going to be billions in new assets for Kia. So a better example would be if the small coffee company signs a contract to manufacture mugs for Gucci in a new factory. That's a giant jump in their business!
Re: It really says something (Score:2)
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it's a reflection what people who are into trading think the stock may be worth in the future
That's my point, it's not in this case is it. What future value is gained by Kia from partnering with a company that has precisely a grand total of zero experience in the car industry and has presented zero evidence of having developed or put any R&D into technology for said industry beyond the infotainment system which was already available to car manufacturers without a partnership.
Investors are riding the wave of publicity from a big name, not because there's any certain future value.
Re: It really says something (Score:2)
I'll pass! (Score:2)
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Rather wonder if Hyundai and Kia didn't remark in the trail of wreckage that Apple has left in its wake with pretty much everyone else they've ever "partnered" with and say, "No, thanks."
apple trying to find a sucker (Score:2)
they have the cash to build a new factory and hire the people to get it going, but they don't want to risk the cash and take years of losses and so they are looking for a foxconn of auto manufacturing which doesn't exist. best case they partner with that indian company that makes landrovers that are always breaking
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Magna Steyr is exactly the Foxconn of auto manufacturing.
They make BMW 5's and Z4's, Jag E-Pace and I-Pace, the Supra, a bunch of Minis,
and even Jeep Grand Cherokees and Chrysler Minivans.
If Apple "made" a car, Magna Steyr would do all of the heavy lifting.
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my BMW is made in the USA like most of them they sell around the world
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The rumors were Apple was going to give Kia the cash to build the factory and hire the people, since Kia can make cars cheaply in the US.
Zastava is open for buisness (Score:1)
Automotive doesn't seem like a natural fit for APL (Score:2)
Note:I am using empirical measurements, as Slashdot is a American Concentric site, I don't want to be bothered doing the conversion, if it bothers you do the conversions yourself.
I don't see Apple making a car as a good good fit for Apple. Making improved software and some embedded hardware components for car would be a good fit. But not a full car.
1. Cars need Long term support. This is support not warranty (which will need to be for 5-10 years) but I will need to be able to bring in a 20 year old Appl
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Lots of good points. But the one that stuck out at me was number 4.
Apple has seldom actually been the first company to bring a technology to market. And when they have, it's often been cringeworthy ("Eat up Martha"). Rather, Apple's biggest successes have been when they brought to market the first iteration of a technology that didn't suck. Apple II... not the first home computer, but the first that didn't suck. Macintosh... not the first GUI computer, but the first that didn't suck. iPod... there wer
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Points 1,2, and 3: If Apple is concentrating on the software, the interface, and possibly the overall design then these points don't really apply as their partner that's building the cars will be concerned about these points. They won't care about part availability in 20 years though. They'll make sure that there's a very high probability that there's parts to see them through to the mandated number of years of required support in each country. From then on it's luck if they have the part or the parts marke
Why? (Score:2)
Why, just why would Apple want to get into the car business? A completely unfamiliar industry, one with lots of established players and - compared to Apple's core business - low margins?
Businesses do not have to expand. They can just stick to what they do best.
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Rule of Acquisition #45: Expand or die.
You can blame Wall Street and all their bullshit lines of reasoning for that kind of thinking.
Apple making MP3 players? Why not! After all it's basically a small, one-task computer.
Apple making smartphones? Of course! It's a hand-held portable computer after all.
Apple going into AR/VR? Absolutely, it's the next logical step after smartphones.
Apple making their own automotive head units to further boost CarPlay? Sure, it's still a small computer box with a display that
Re: Why? (Score:1)
Why is this a thing? (Score:2)
They probably want to charge a 30 percent margin. (Score:2)
Given the project's potential to upend ... (Score:2)
Given the project's potential to upend the industry -- similar to how its iPhones have shaken up the consumer-electronics market.
Or the Newton.
There are now millions of design-conscious shopper (Score:2)