Former GM, BMW, Ford, and Chrysler executive, Bob Lutz, is skeptical about the prospects of a successful autonomous electric vehicle by 2020. He also has much to say about Apple’s rumored efforts:
“If I were a shareholder I’d be very upset, because they’re currently engaged in a very high-margin business and the automobile business, at best, is a very low-margin business. And you can’t show me one company in the world that, to date, has made a nickel on electric cars. There is absolutely no reason to assume that Apple is going to be financially successful in the electric car business.”
“If I were a board member of Apple, I’d ask some serious questions about this thing.”
“When it comes to actually making cars, there is no reason to assume that Apple, with no experience, will suddenly do a better job than General Motors, Ford, Volkswagen, Toyota, or Hyundai. So I think this is going to be a gigantic money pit, but then it doesn’t matter. I mean Apple has an embarrassment of riches, they don’t know where to put the cash anymore. So if they burn 30 or 40 billion dollars in the car business, no one’s going to notice.”
We can’t blame Lutz for being realistic. Apple has heard such disbelief many times in the past and will continue to hear it. We hear constant criticism over the company’s ventures into music, smartwatches, and smart TVs.
There was a time when naysayers called smartphones a niche and today the iPhone is the most successful product in tech history.
Source (Trusted Reviews)