[GAM] Apple car outsourcing like iPhone?…

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[서울=뉴스핌] Reporter Kim Sun-mi = Apple (NASDAQ: AAPL) is building a proven method of developing, producing, and launching new products. After the in-house design team develops and outsources the parts, the assembly of the finished product is entrusted to a partner company.

Recently, negotiations with leading automakers such as Hyundai Motor Company and Nissan are known to have collapsed in relation to Apple cars, and the prospect that Apple will follow this proven method for Apple cars as well as the iPhone is weighing on.

Apple [사진= 로이터 뉴스핌]

There are three ways to make Apple cars: ▲ establishing partnerships with existing automobile companies ▲ establishing own production facilities ▲ contracting with partners such as Foxconn (TPE: 2354) in Taiwan and Magna (NYSE: MGA) in Canada.

First of all, the possibility of a partnership with an existing automaker seems to be quite low. The process of making an Apple car would be a way that Apple develops an autonomous vehicle, designs the interior and exterior, designs the on-board technology, and leaves only the final production to the car company. It falls into a competitor’s partner company.

One manager, who worked for both Apple and Tesla (NASDAQ: TSLA), explained that this approach is like Apple’s winning an order for iPhone production from its strong competitor, Samsung Electronics.

In addition, Apple is expected to innovate completely in the car’s structure and release a completely new Apple car, including how the seat works and the shape of the fuselage. For a traditional automaker, helping such market disruptive innovators is not very welcome.

For this reason, industry experts observed that negotiations with Hyundai Motor Company, Nissan and Ferrari NV would not have made progress.

It is also unlikely that the second method, the establishment of its own production facilities, is also unlikely. Apple outsources all production from MacBooks to iPhone iPads to Foxconn, Pegatron (TPE: 4938), Wistron (TPE: 3231), and Lee Shin Precision (SHE: 002475).

Building own production facilities costs billions of dollars in construction, wages and training for manpower, and it is a pain in the need to maintain relations with local governments.

In addition, plant operations are largely a low-margin business. As Apple focuses on design and development, instead of entrusting low-margin businesses to partners, Foxconn and Pegatron are reaping unprecedented sales profits.

Among the existing electric car companies, the successful president, Tesla, was unable to escape the deficit of billions of dollars by operating its own factory, but only recently began to make regular profits. However, it is still incomparable to Apple.

Last year, Tesla’s net profit increased to $700 million, but compared to Apple’s net profit, which exceeded $60 billion during the same period, it is a new step. Of course, the traditional automobile industry’s sales profits are far less than that of Apple.

Accordingly, it is expected that Apple will apply the existing iPhone production method to Apple cars to complete design and design, and then receive parts from suppliers and outsource assembly to partners.

Among them, Foxconn and Magna are being pointed out as strong partners to produce Apple cars.

Foxconn is a major iPhone assembly company and has already maintained a long relationship with Apple, and has recently expanded its foothold into the automotive industry.

In October, Foxconn began production of electric vehicle chassis and software platforms, and last month, it signed a contract to produce more than 250,000 electric vehicles per year with American electric vehicle company Pisker (NYSE:FSR), one of Tesla’s counterparts.

An Apple employee in charge of production told Bloomberg News that Foxconn is accustomed to being directed by Apple engineers, and that the Foxconn factory is full of Apple-designed equipment.

Magna also has a long history with Apple. The two companies have been discussing Apple car production since Apple started the Apple Car project five years ago.

What’s more, Magna is far more experienced in car production than Foxconn. Magna produces luxury models for brands such as BMW, Daimler and Jaguar Land Rover.

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