Why Low Margin Car Industry Attracts Apple Inc

Apple is one of the most profitable company on the planet and now it wants to expand its profile of operation to build its own Apple iCar. But a lot of people are questioning this move and are terming it unwise since automobile industry is believed to run on very low margin/profits.

Apple vs Competitors photo-credit: Statista.com

Now Vox has come out with a counter point which seems to be pretty valid. It states that even the phone and pc manufacturing was traditionally thought to be a low margin business before Apple jumped into it and proved everyone wrong. This was made possible due to the twin strategy of efficient manufacturing and sacrificing market share to gain pricing power and has earned Apple billions of dollars that its competitors can only dream of. See the above chart comparing profits earned by Apple versus its closest competitors like Asus, Hp, Dell in the pc segment. We feel somehow Apple knows all the right tricks to run a money spinning business.

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Apple Preparing To Revolutionize Automobiles

Apple Car Project

Automobiles are no longer just vehicles that simply move you around. They are increasingly becoming more like devices with automated electronic gadgetry making them fool proof, literally. According to a report by Reuter Apple is working on a secret car project codenamed "Titan" which is all about developing a self driving electric car which will be competing against other such high-profile car projects like that of Google's.

Companies like Apple and Google are leaders in creating amazing softwares for mobile devices that have revolutionized the way we live and work. Now they are looking beyond their staple field and want to become part of rapidly evolving automobile industry. This is not because they want to make cool cars but are rather more interested in creating and controlling the operating system and the user interface using which the self-driving cars of the future will run.

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