Apple Car Pricing

Thoughts on Apple Car, Part 80

I sent in two questions to the AboveAvalon Q&A for Thursday April 20:

What are some business models for Apple in cars?

Neil’s answer:

I remain skeptical of the idea that we will want to own self-driving cars. The convenience factor is the primary reason people own cars today. There is value found with having a car be available when we want to go somewhere. Ridesharing has begun to question this car ownership dynamic.

If we extend the exercise out a bit, self-driving cars will likely only accelerate things in the sense of a car will be available wherever we want, whenever we want. The value tied to ownership will fall.

[…]

The more valuable takeaway from this would be not to get caught looking at everything through an iPhone lens where consumers buy and own products directly from Apple. At the end of the day, Apple is a product company.

The[ir] business model is selling experiences that can change the world.

Neil has a point here in describing the difference between owning and using a car. Many people in urban areas today are making the switch to only using a car. Ownership goes…