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What if Apple didn't build cars?

Choose something deterministic and slowly innovate on the basis of success.

A mature company will never engage in disruptive innovation in its heyday, and those companies that clamor for disruptive innovation all day long will disappear into the dust of history in about three or five years.

What if Apple didn't build cars?

Recently, there is news that the Apple car-making team has been disbanded for some time, and there are also rumors that Apple's car-making will be "yellow". In fact, Apple's car-building plan began in 2014, and in 2017 Cook admitted the existence of the "Titan Project" to the outside world.

Apple will never make a desperate bet on building cars, and Cook will not bet all his energy in the second half of his life to build cars like Lei Jun, so why does this phenomenon occur? Compared with some international Internet and software and hardware manufacturers, they do not seem to have a strong desire to build cars, nor are they as radical as our cross-border car manufacturing.

As we all know, as an entry ticket for the next era, many companies want to grab a ticket, regardless of whether they have strength or not. Li Bin, chairman of Weilai Automobile, once revealed that the threshold for making cars is now 40 billion US dollars, compared with the madness of previous years, the industry threshold that has been raised in recent years has also isolated many enterprises. In addition, the new energy vehicle industry has also begun to "move from virtual to real", and the delivery volume is a hard indicator.

At present, the global new energy vehicle company (newly established rather than the transformation of oil vehicles), can be positive profitability on Tesla, and Tesla has been more than ten years, and the profit is not very amazing, but fortunately, the expectation is better, 2021 under the influence of the global lack of core, Tesla's delivery volume has been close to 1 million, the future with the release of production capacity and the completion of the gigafactory, some institutions predict that Tesla's delivery volume will reach 1.4 million in 2022, so Tesla enjoys a high valuation.

What if Apple didn't build cars?

However, in the current trend of car manufacturing, there is another more peculiar phenomenon, that is, some companies are still stuck in the mass production stalls, such as Jia Yueting's FF, Apple and other enterprises. We observe these new car-making forces, they have only four or five years from the establishment of the project to the creation of the whole car, so why can't Apple build a car that can be mass-produced with so much money?

In fact, since 2015, Apple has set up a car research and development center, the direction is driverless smart cars. Statistics show that one year after its establishment, the R & D team has thousands of engineers, of which 300 are former Tesla employees. After 2017, Apple's caliber shifted from the whole vehicle to the automatic driving system.

Not only that, in April 2017, Apple began the self-driving test on public roads, and the participating models included 3 Lexus RX450h SUVs and 6 safety drivers, which explained why Apple could not land on the ground, because Apple did not want to land on the whole vehicle.

For Apple's explanation, the outside world naturally does not believe it, thinking that it is only a matter of time before cutting into the whole car, but the outside world also ignores a fact.

What if Apple didn't build cars?

First, at present, no vehicle company can rely on the whole vehicle to obtain huge profits, even Tesla's hardware gross profit is roughly hovering around 20%, and the reason why new energy vehicle companies have achieved a high valuation is entirely in the driving system and other services, perhaps the most profitable part, has always been Apple's "tradition", so cutting into the whole vehicle at this time is not cost-effective for Apple.

Second, as the leader of the mobile phone industry, Apple has taken 60% of the industry's profits, and Apple's mobile phone hardware, software and computer products have grown very rapidly in recent years, so Apple does not have to bet hard to bite the bone of new energy vehicles.

Third, for the company, it has naturally possessed a certain gene since its inception, blind cross-border can only accelerate the company into a recession period, and Apple has an unparalleled voice in the control of the supply chain, so no one is clearer than Cook.

On the whole, I think that although the outside world rumors that Apple's car-making team has been dissolved, but for this level of company, holding hundreds of billions of dollars in cash reserves, coupled with the accumulation of considerable technology, it is not a difficult thing to start from scratch, and the most important thing for Apple at the moment is still mobile phones, computers and other hardware, as long as it is stable, it will not go wrong, I think this is also a big reason for Buffett to buy Apple stock.

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