I was thinking about the new Visio Pro goggles from Apple. I can not, for the life of me, understand why Apple thinks business people are going to strap a computer to their faces to have a zoom call. It seems ok for gaming, but nothing special to me. This does not seem like a real innovative product to me.
I was really hoping Apple would actual venture into the car market. They had this Project Titan thing for the last 10 years, but I think it has not fared well. I think they should accelerate their efforts by buying a car company. I think Lucid is a perfect option. Here is my logic of why cars and why Lucid.
1. Apple is a hardware company
If you look at their best products, they have consistently been hardware. Apple software has rarely been good. They have the right hardware manufacturing partners and DNA. If you imagine an Apple car, you already know it’s going to be smooth and luxurious. I trust Apple to make a beautiful interior and exterior.
2. Apple understands global logistics
Apple understands just-in-time supply chains. This is Tim Cook’s bread and butter. He knows better than anyone how a strong supply chain can make or break a company. They know how to make chips in one place and have them arrive in another place just at the right moment.
3. Apple has the money
Starting a car company is expensive, but Apple has more than enough to purchase Lucid. Their current estimated value is 16 billion. Apple has over 55 billion literally sitting in cash. They could buy Lucid easily. Ford is worth 56 billion, but they don’t share the same DNA. Lucid desperately needs the money to compete. They are going to fail (again) if they don’t have the right funding.
4. Lucid has the right aesthetics
Lucid Airs are the right look and feel for Apple to kick start their efforts. It’s pricy, but an Apple car would not be the cheapest available. It would be the iPhone of cars.
5. Apple has the stores
Tesla has shown how you can sell a car without a car lot. You can just show the car in a store and take the orders digitally. Apple should copy Tesla’s approach, but it wouldn’t be difficult since they have a retail footprint already
6. Tesla has some major issues
Besides increasing competition, Elon Musk is at risk of losing billions over the twitter fiasco. If he defaults on his loads, Tesla stock will be sold and crater the valuation. This will open the door to Hyundai and others to take up market share. If Apple wants to make a move, it better get moving.
7. Apple has stopped innovating
Since the death of Steve Jobs, Apple has had little innovation. They have lost their inspiration. Getting into cars would allow them to take bold new steps in new directions. Tim Cook is a supply chain guy, this is right up his alley. without innovation, Apple will suffer long term.
I don’t imagine this idea has never been floated at Apple, right? Someone must have mentioned it. Who knows what they will do? I would give it a test drive for sure.