Apple

Looking for a new Foxconn

Apple Car is real competition to Tesla, says Morgan Stanley

Apple is still looking for a manufacturing partner for the Apple Car. Here, however, the company is now tending towards a pure contract manufacturer, such as was found in Foxconn in the production of iPhones. For various reasons, a partnership with a traditional car manufacturer is not very promising, according to well-informed circles.

Apple has been working on its own projects for years that should aim at a car or other electrically powered vehicle. At the beginning of the year, however, it became very clear how difficult the search for a production partner is, several companies did not want to build the Apple Car, Apfelpage.de reported.

Now the editor Mark Gurman has some interesting insights on the subject released which are partly based on statements from insiders around Apple and its supply chain.

Apple is unlikely to win over an automaker

In fact, Apple will have a hard time getting a traditional automaker to manufacture an Apple Car. Whether it’s BMW or Kia, every car manufacturer that is already established on the market with its own brands will rush to become a supplier and see their own brands in danger as soon as an Apple car is manufactured, sources in the supply chain are cited. And this fear is also justified: Apple wants to redefine the fundamental way cars look and their performance data, this requirement could not be compatible with the goals of established car manufacturers. Apple is much better advised to look for some kind of Foxconn for its Apple Car, possibly even Foxconn itself. The large contract manufacturers in Asia can manufacture almost anything, as long as the production specifications are precise enough, including electric vehicles. In addition, Apple usually makes a significantly higher profit if products are developed and designed within the group, but production is outsourced.

Apple will define all the properties of the Apple car, from the body to the design of the seats to the software surface, but production will then be taken over by external manufacturers, according to sources who did not want to be named to Gurman.
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However, an Apple Car is not expected before 2025.
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