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If Apple's car business gets as big as Porsche's, guess how much more money Apple will make
Business Insider ^ | Feb. 16, 2015, 9:49 PM | Henry Blodget

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 ...


TOPICS: Business/Economy
KEYWORDS: apple; automakers; car; icar
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To: Lockbox

Tribal knowledge in the car making business is a formidable hurtle. Porsche has had some spectacular failures in recent years and they are not the new kids.


21 posted on 02/17/2015 7:43:42 AM PST by mad_as_he$$
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To: Lockbox

Interesting analysis.

Tesla exists because of California and northeast state enviro mandates and crony affiliation with the Baraqqi regime.

Apple could certainly work within that biz model.

Maybe they could deliver a new POTUS limo for Liz Warren’s inauguration parade in Jan 2017?


22 posted on 02/17/2015 7:49:57 AM PST by nascarnation (Impeach, convict, deport)
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To: BunnySlippers

I’m going to wait and see what Apple is actually doing, before I decide one way or another, whether I’m interested or happy or not. At this point, I just don’t know what Apple is doing. AND ... that’s the way Apple is ... in that they don’t preannounce that they are creating some new product.

ALSO ... remember ... Apple says there are a 1,000 NOs for every YES. This could end up being a “NO” after going through the research.

We’ll simply have to wait and see.


23 posted on 02/17/2015 7:52:51 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: Lockbox

Black, too ... :-) ...

It was attributed to Henry Ford that he said about the Model T ... “You can paint it any color, so long as it’s black.”

How quickly we forget ...


24 posted on 02/17/2015 8:03:07 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: Responsibility2nd

My iPad doesn’t default to Google Maps. I avoid Google Maps. My iPad goes to Apple Maps and I haven’t had any problems with it.

I’m not sure where you get that idea ...


25 posted on 02/17/2015 8:04:41 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: longtermmemmory

Apple doesn’t sell songs only made by them ... LOL ... and the movies I get aren’t made by Apple. I read newspapers that aren’t printed by Apple and I can surf to websites that aren’t made by Apple. My e-mails are restricted to go to only Apple employees or Apple.com addresses.

AND ... Apple doesn’t prevent my iPad or iPhone from getting apps from anyone but them ... :-) ...

I think someone has steered you down the wrong track.


26 posted on 02/17/2015 8:08:48 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: The_Victor

That would assume that people buy based on a LOGO. But, what you’ll find ... INSTEAD ... is that the logo doesn’t go on a product, unless its well-made, the best for the consumer out there, and, as a result, it’s wildly successful with the consumer (as you see now with Apple products).

You think it’s this way with buyers of Apple products ...

“Slap a logo on any product, and the people will buy it, regardless.

INSTEAD ... it’s this way ...

“Design and manufacturer a product that is quality-made, works well with people and people are wild about the product ... THEN ... put the logo on it!

You’ve got the process REVERSED in your head!


27 posted on 02/17/2015 8:12:57 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: BunnySlippers; Swordmaker

/bingo

My friends who are total koolaid-drinkers (I’m merely a user and fan of Apple products) have literally never mentioned this, and it has come up a number of times over the years.


28 posted on 02/17/2015 8:14:04 AM PST by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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To: mad_as_he$$

I have to point out ... that the EXPERTS said that about PHONES, too, when Apple was getting into that market. They said it just wasn’t possible to overcome the vast knowledge of those existing companies in the design and manufacture of phones. They were just TOO FAR AHEAD ... LOL ...

When you go back and read those statements from the experts (before the iPhone came out) and you look at the iPhone today, you wonder “How could those experts be so stupid?!”

Whatever Apple is getting into now, it will be the same way!


29 posted on 02/17/2015 8:15:31 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: SunkenCiv

How can you or anyone else here say what their view of what Apple is doing right now ... when NO ONE KNOWS what they are doing? ... LOL ...

It would be like speculating on “anything” (Apple or another company) and saying, “I don’t know how they could make such a product! It’s crazy!” ... AND THEN ... finding out later that “they” (whomever it is) was not making that product. The next statement is, “SEE! I told you it would be stupid for them to do that!!” ... LOL ...


30 posted on 02/17/2015 8:19:25 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: Star Traveler
The first iphone was crap. The ones today are still not all that good. Are you a member of the Apple cult?
31 posted on 02/17/2015 8:26:28 AM PST by mad_as_he$$
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To: shove_it

That’s just about the ugliest car I’ve ever seen. It even makes the Googlemobile look good.

But greenies seek out the ugliest cars because they think it makes them look responsible and caring, when in fact, it makes them look like fools.


32 posted on 02/17/2015 8:33:05 AM PST by Fresh Wind (The last remnants of the Old Republic have been swept away)
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To: mad_as_he$$

Are you a member of the Apple-haters cult? ... :-)


33 posted on 02/17/2015 8:39:33 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: Star Traveler

Apparently *they* know what they’re doing, so there! ;’) Thanks ST.


34 posted on 02/17/2015 8:40:47 AM PST by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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To: Lockbox
So if Apple sprouts a car business the size of Porsche's, Apple's operating profit will increase by ... 5%.

It's not about how much extra profit they will make. It is about the return on investment. If the return is more than the average rate of return for the economy as a whole, or is more than the return that they could make on other investments, and more than they could make by lending, then it is a good investment.

35 posted on 02/17/2015 8:42:51 AM PST by mjp ((pro-{God, reality, reason, egoism, individualism, natural rights, limited government, capitalism}))
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To: Fresh Wind

Yup. iCrash would be my name for it.


36 posted on 02/17/2015 8:44:35 AM PST by shove_it (The bigger the government, the smaller the citizen -- Dennis Prager)
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To: Star Traveler

must be an iTrack...


37 posted on 02/17/2015 8:46:24 AM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Star Traveler
Not a hater, just don't see the attraction when Android is a way better interface and a more robust hardware platform. So are you an apple cult member?

BTW the government regulations alone on vehicles are stacks and stacks more than on cell phones.

38 posted on 02/17/2015 8:48:15 AM PST by mad_as_he$$
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To: mad_as_he$$

Since you’re not a member of the Apple-hater cult group, I’m not a member of the Apple cult group ... :-) ...

Now that we got that part out of the way, it’s more than verified in our free enterprise system that the market has WILDLY ACCEPTED these Apple products. It would appear, if nothing else, you’re simply OUT OF TOUCH with the consumer market.

AND THEN ... how do you know Apple is getting into the automobile manufacturing market?


39 posted on 02/17/2015 8:56:22 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: longtermmemmory

The only “iTracks” I ever see around here are an invention of the Apple-haters cult ... :-) ...


40 posted on 02/17/2015 8:58:20 AM PST by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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