In the vein of assuming that where there’s smoke, there’s fire, it’s worth considering how Apple would do if it launched a car.
Michael Schrage, a leading strategist at MIT’s Sloan Business School thinks Apple could do very well indeed:
“Could Sir Jonny Ive be the next Battista Pininfarina, Harley Earl, or Akihiro Nagaya? Don’t bet against him. Steve Jobs’ successors are at least an order of magnitude more credible as disruptive innovators than the heirs of Ford and Sloan. The computer, software, telecoms, music, broadcast, publishing, photography, retail, and consumer electronics industries certainly believe so. Apple demonstrably understands design, UX, and global supply chain alignment in ways few organizations ever have. According to data from Yahoo finance, company’s market cap exceeds that of Toyota, BMW, Volkswagen, Ford, GM, Honda, Fiat Chrysler, Tesla, and Daimler combined. Apple’s cash hoard currently tops $175 billion.”
If Apple truly wants to fundamentally transform the driving experience and global automobile business, it surely has the ingenuity and resources to do so. Super-investor Warren Buffett’s admonition that “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact” doesn’t apply. Unlike commercial aviation, automobile economics brilliantly reward the brilliant. Apple is brilliant. Don’t bet against them.r