This guy is funny and I am sure Cook appreciates his recommendation ..... :)
Former General Motors CEO Warns Apple Inc. Against Producing Cars
The former CEO of GM, Dan Akerson voiced his concerns about Apple’s rumored plans to produce cars
Former CEO of General Motors ( NYSE:GM), Dan Akerson, has issued a statement warning Apple Inc ( NASDAQ: AAPL) to stay away from the automotive industry. In an interview with Bloomberg, Mr. Ackerson noted that Apple may be biting off more than it can chew, elaborating that Apple may not completely understand the difficulty in operating a car business. "A lot of people who don't ever operate in it don't understand and have a tendency to underestimate," he said. “They'd better think carefully if they want to get into the hard-core manufacturing," he said, referring to Apple. "We take steel, raw steel, and turn it into car. They have no idea what they're getting into if they get into that."
He went on to say that Apple should stick to what it does best, that is making consumer electronics; an industry which has much higher profit margins as compared to the automotive industry and where safety regulations don’t come into play as much. Supporting this statement, Bloomberg added that Apple made $18 billion in the last quarter with a profit margin of 40 percent, whereas GM made a profit of $2 billion with a profit margin of just 14 percent. He added that Apple should focus more on helping car manufacturers with in-car electronic systems if it wishes to plant its roots in the automotive industry. In-car entertainment systems are trailing behind smartphone operating systems by a wide margin, and while Apple is trying to implement its OS using CarPlay, it could do a lot more.
Speaking of his time with GM, Mr. Akerson noted that he would’ve gladly partnered up with Apple to further develop the car infotainment systems during his tenure. "I'd have turned over the infotainment and interconnectivity of every car." While the Apple car is nothing more than rumors and speculation right now, Mr. Akerson is partially correct. Making cars is a lot more complicated than making a phone; there are a lot more factors in play. Apple has proven itself to be very capable at new product launches but this is one category where it has absolutely no experience whatsoever. At this point, no one is fairly certain that the Apple Car will ever materialize; only time will tell as new details emerge about the purported Apple Car project.
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