No, that&#x27;s a really bad analysis of margins on cars.<p>Look, the margin on a $700 iPhone is somewhere in the vicinity of 30%.  That means that the price that an iPhone user pays for the privilege of having an iPhone per se is about $200, maybe $300 on the outside.<p>For a car whose manufacturing costs are $30,000, a 30% margin would mean selling at $42,000.  The size of addressable market that can afford to spend $12,000 on Apple brand is microscopic compared to the market size of people who can pay $300 on Apple brand.  The &quot;luxury&quot; market for cars is inherently much, much, much, much, much smaller than the luxury market for smart phones.<p>So if Apple does try to attain iPhone-like margins in the car market, they will necessarily address a tiny market.  If they don&#x27;t, they&#x27;ll <i>still</i> address a much smaller market than the smartphone market, and with smaller margins to boot.