Apple electric car targets 2019 rollout, Wall Street Journal sources say

[brooklynite]

Source: CBS MarketWatch

Apple Inc. is accelerating efforts to build an electric car, designating it internally as a “committed project” and setting a target ship date for 2019, according to people familiar with the matter.

The go-ahead came after the company spent more than a year investigating the feasibility of an Apple-branded car, including meetings with two groups of government officials in California. Leaders of the project, code-named Titan, have been given permission to triple the 600-person team, the people familiar with the matter said.

Apple AAPL, has hired experts in driverless cars, but the people familiar with Apple’s plans said the Cupertino, Calif., company doesn’t currently plan to make its first electric vehicle fully autonomous. That capability is part of the product’s long-term plans, the people familiar with the matter said.

Apple’s commitment is a sign that the company sees an opportunity to become a player in the automotive industry by applying expertise that it has honed in developing iPhones—in areas such as batteries, sensors and hardware-software integration—to the next generation of cars. An Apple spokesman declined to comment.

Read more: http://www.marketwatch.com/story/apple-electric-car-targeted-for-2019-sources-say-2015-09-21?link=MW_home_latest_news

[ProfessorGAC]

1. Would Be Cool If They Could Find A Lower Price Point

Tesla is way out of reach for most people. Even the Volt is expensive for the range and performance.

As to the comment that 2019 is awfully ambitious, my guess is they'll buy the expertise by buying some small car company. (If there are any to be bought.) Would accelerate the development curve tremendously.

[Xithras]

4. It's improbable that Apple will target a low price point.

I was listening to a pretty fascinating analysis of Apple's prospects in the automotive world last week. In it, the analyst made several interesting points.

1) Unlike smartphones and computers, cars aren't a "new" technology and the automotive market and customer expectations are already well established. Even features like electric motors and self driving systems aren't unique, and nearly every major auto manufacturer has functional prototypes and cars that work with those features. Apple will have very little room to develop "unique" features that set it apart from its competitors. Not only will they be competing head to head with Google, and with ALL of the car manufacturers that decide to adopt Google's technology, but they'll also be competing with the $3.1 billion dollar Mercedes/Audi/BMW HERE system and with countless of other technology systems developed by other manufacturers around the world.

2) Apple is a "cachet" brand. Part of the appeal of owning an Apple is the fact that you own an Apple. Apple has spent much of the past decade establishing themselves as an exclusive, high end brand owned by the brand conscious. Apple won't sell a cheap car for the same reason that Apple won't sell a cheap computer or phone...part of their marketing is that the higher price is justified by higher quality. There is no valid reason why Apple couldn't sell their computers and phones at prices that compete with Dells and Samsungs, and they would gut those markets if they did, but Apple won't cut their prices because it would undermine their own unspoken declaration that "Apple = Quality, and everything else is a cheap knock off." Targeting a low price point with their cars would actually reflect negatively on them in that light. This is especially true in the automotive market, where the perceived quality of cars is often tied to its brand. Slap a Mercedes logo on a car and most people presume it's well built, because that's Mercedes reputation. Slap a Hyundai logo on a car and most people think "cheap" because that's how they've established their brand. Apple would be doing itself a huge disservice to associate its brand with "cheap". It would not only harm their car sales with brand conscious buyers, but could potentially harm phone and computer sales by removing some of that aura of exclusivity that accompanies its logo.

In the end, the Apple car will probably be a high end offering designed to promote the brand, like the $15,000 gold Apple Watch. They won't need to sell many for it to be successful, and the lower availability will translate into more desirability and cachet for the brand conscious. If they develop and market it using the same business strategies they use for the rest of the company, the car will probably end up falling more on the luxury side of things with a huge focus placed on the user experience and craftsmanship. They'll be competing head to head with Tesla, for largely the same market.

[Kelvin Mace]

6. Apple goes for the high end

with it's products, so I am guessing it will be in the $40-50K range.

Tesla's Model III is supposed to be out in 2017 with a sub-$40K price. The 2017 Leaf will be out with a price around $37K. Same with the promised Chevy Bolt.

All are supposed to have a 200+ mile range.

Yes, EV and PEV cars are expensive, which is why you should go for used versions. A LOT of Leaf's and Volt's out there right now for $10-$15K. I bought my 2012 Leaf last year with 9300 miles on it for $20,000 less than it's original MSRP. At two cents a mile to operate, it has been a cheap and fun car to drive.

Also, EV and PEV are one of the few types of car it makes sense to lease. since by the time the lease runs out, the next models will have more features and greater range.

[ProfessorGAC]

10. Cool. Thanks Kelvin! (nt)

[Fuddnik]

12. Chevy just had some awesome deals on NEW 2015 Volts.

I was looking for a new car to replace my 2002 Corolla back in May. An ad caught my eye as I was heading out the door to look at some cars. It offered a new 2015 Volt for $17,000.

I had to find out how they came up with that price. The dealer said that they took all the rebates and manufacturer incentives, and considered a $4,000 trade in. I asked if they would do a lease, and they came up with $148.00 per month for 39 months with a purchase option at the end for $7,000, considering $2,500 down payment (1k cash, and 1k trade-in).

I drove it home.

With a 43 mile range on a charge, and the amount of driving we do, after 3,000 miles, we've used exactly 6 gallons of gas since May 7. And I burned a couple of gallons of that, just to get fresh gas in it.

Love it.

[Kelvin Mace]

15. We are looking at the Volt

when it comes time to replace our Sentra. It is the perfect transition car to drive until batteries get 300 mile range and super chargers become more common.

[WhiteHat]

2. Apple meets its Waterloo

R.I.P. Apple, it's been a swell ride.

[winstars]

3. OMG!!! So I should throw away all my Apple devices today I guess. RIP Apple, not bleeding likely

Although I did go to school to become a Blacksmith and that turned out not to be the best career choice. Wrong century I was told...

[Kelvin Mace]

7. It certainly is a stretch, but Apple has the money

and needs to create the next iPhone/iPad, so why not an iCar?

[brooklynite]

11. Better cash out those shares I bought for 65c then?

[winstars]

13. Is that what yours work out to with all the splits my friend??? Sold mine at"how much higher can..."

I would literally be a 1%'er if I had not...

[cpompilo]

5. Wanna bet they name it the iCar?

[tinrobot]

8. Building a competitive car is a lot different than making overpriced consumer goods.

The margins are also a lot less. The best auto companies struggle to hit 15% profit. Apple is currently making almost 40%.

Not sure how this is a wise move on Apple's part. Sure, they may get a few design zealots to buy their cars, but after that, they have to compete with companies who have been doing this for over 100 years. They better have something really good.

[Roy Rolling]

9. Will the Apple Car Jump the Shark? n/t

[NuclearDem]

19. If it's using Apple Maps, it probably will at some point.

[ButterflyBlood]

14. Bet this will be as big of a hit as the watch

Nt

[Kelvin Mace]

16. All indicators are that while not as spectacular as

iPhone numbers, the watch is selling pretty well. It is a niche product for the 5% who can afford it. The margins on the watches are WAY above margins on their other products, so they don't have to sell a lot to make money.

[whatthehey]

17. So what do we have to look forward to?

If current company trends continue, it will be a slower less powerful EV at twice the market price that legions of fans will tout as uniquely intuitive even though it hides the indicator controls and combines the start button with the trunk release. Oh and it'll be only available in white.

[snooper2]

18. If Apple built a car- would it have windows

Cars would only be supported for the next two generations.

After the warranty expired, buyers could get any repair done for $345 at the Apple Store, but they might lose all their settings and get different color seats.

All fluids would be filled using the same opening — electricity, oil, antifreeze, washer fluid, and brake fluid. Adapters to let you use this opening for other purposes, such as adding washer fluid, would cost $300. The excuse for this is that it would be the thinnest car in the industry.

Two years later, the market would see the Samsung Car, with identical styling, in 120 varieties. Apple Car would come in regular and plus sizes.

After a year, Apple would introduce new controls for the car removed the features most valued by customers and made the displays less legible.

A couple of drops of water would destroy it