From one point of view I don&#x27;t buy in the skepticism surrounding an Apple Car. As many issue could exist, and this article present a long list, Apple has the resources and the capabilities to overcome them.<p>The problem for Apple right now is that is so huge that any business idea is so small in scale that doesn&#x27;t move the needle. I mean a 1 billion dollar idea is a great pitch, but for Apple is less the 0.5% in revenue, doesn&#x27;t make the board level.<p>From this point of view there are very few industry where you could venture with such a huge scale. The automotive industry is one of them and appears to be ready for disruption.
The problem as mentioned in the article is the incredibly low margin. I don&#x27;t believe you could cut a lot on the cost of production, years of experience have optimized the process an the material that get into a car is that much, you could reduce them by a lot without impacting safety. Apple could try to put a premium on their car, and the margin on ultra-high premium car (Ferrari, Lamborghini...) are higher than Apple&#x27;s margin. But the price is so high that the revenue is razor thin. The point is, a 30% premium on a device that costs on average 400$ is 120$, doesn&#x27;t reduce the buyers pool by a lot. A 30% premium on a 20K car is 6K, it change a lot. And if you go in the premium segment is even more.<p>Final consideration, maybe the price Apple is aiming are not electric car but direct competition with Google&#x27;s self-driving car. Or if you want car as-a-service. It is something not totally in Apple&#x27;s DNA but it could provide hefty profit margins. Could be that the release date is 2029 and not 2019?