Posted on 02/17/2015 7:05:29 AM PST by Lockbox
Apple fans are already hyperventilating with excitement about how much money Apple is going to make selling cars.
So let's put some numbers around that.
What if Apple immediately builds a car business the size of, say, Porsche's? How much more money will Apple make?
Well, Apple made about $53 billion of operating profit in the fiscal year ending in September 2014, a spectacular 28% operating profit margin on revenue of $182 billion.
Porsche, meanwhile, made about $2.6 billion of operating profit, an impressive (for a carmaker) 20% operating profit margin on revenue of $14.3 billion.
So if Apple sprouts a car business the size of Porsche's, Apple's operating profit will increase by ... 5%.
Wait, only 5%!?
Read more: http://www.businessinsider.com/how-much-money-can-apple-make-from-cars-2015-2#ixzz3S0y73ygc
(Excerpt) Read more at businessinsider.com ...
Interesting article about Apple’s car business outlook.
I haven’t seen one Apple person that was excited about this contrary to the article.
And, if Apple were to get into the auto business, which aspect of the business? Making the computer software?
Why would they assume that Apple would want to retail automobiles.
Seems like a real stretch.
I would drive an Apple. Drove plenty of Lemons, so time for a change.
http://www.freerepublic.com/focus/f-news/3257436/posts
I think Apple sees the driverless car as the wave of the future and they want to get in on the ground floor. With their electronic, computer and GPS expertise and foundation they probably believe they are particularly situated to take advantage of this.
Yeah, I did and am reading it.
Will they only come in White?
Hard to make a high end, world recognized quality level car,,,, with defacto slaves in factories that hang anti-suicide nets on the windows.
But that’s apple,,,,
Oh, that's hilarious. One of the (many) reasons I bought an android smart phone over an i-phone was the GPS. Apple maps and GPS sucked so bad, Apple eventually quit them and defaulted back to Google Maps.
The author of the article is sure they want to sell luxury automobiles and retail them.
Yes, it’s a leap.
These are not “self driving” cars. They are dependent on using google or apple internet services.
Apple cars will on drive on roads built by apple with maps only from their iTunes store.
I own Apple stock but agree totally on your statement. My phone is android.
Hey its an “iROD”
And remember, Porsche’s profit margin is a lot higher than most auto makers. Breaking into a new market is not going to be profitable for many years without government subsidies of some kind (which may be what they’re after).
Realize too that Apple could slap it's logo on a 1970's Pinto and probably break even just based upon sales to the Podpeople.
A dealer oil change in a 911 runs $200 or more. Parts like engine seals run $1,000 installed.
If Apple can get prices like Porsche, they’ll make a pot of money.
I seriously doubt that Apple will get into the business of manufacturing cars. More likely, they will pair with existing manufacturers to wrap their software into certain product lines. Most likely models on the high end to start.
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