Apple Inc. (NASDAQ:AAPL) and McLarenDate Published: 2016-09-21
Author: Ophir Gottlieb
Written by Ophir Gottlieb
In what could be the most powerful combination of brands in the history of technology and automotive manufacturing, Apple Inc. (NASDAQ:AAPL) looks to acquire McLaren.
While some of the mainstream media and some Wall Street analysts have predicted that the Apple Car was going to be more like a self-driving ecosystem surrounding the Apple operating system, most people in the know had accepted that even as secretive as Apple inc. is, the company was building an actual automobile, not just software. News today reminds us, again (again), Apple is ahead, not behind.
Even those that believed Apple was building a car under its super-secretive "Project Titan," news (or rumors) of a recent exodus of many top engineers had people feeling as though Apple was in trouble, perhaps even over its head. Additionally, with Tesla stamping its brand on consumers' minds and the discord between Apple and BMW's "almost" relationship, left people wondering if Apple was either too late, or didn't have the brand to move into the self-driving car world.
It turns out everyone that sided against Apple looks wrong, again. Here's the news today:
Yep, that McLaren -- the one that created perhaps the most venerated sports car ever, known simply as "F1." In 1993, without the rev-limiter, the F1 was able to reach a top-speed of 240.1 mph (386.4 km/h) and claim the title of "the fastest production car in the world." The F1 was the first production car to use a carbon-fibre monocoque chassis (www.ferraris-online.com).
Although that record has been broken, the vehicle still remains the world's fastest naturally aspirated production car in terms of top speed according to the Telegraph.
The Bloomberg article goes on to note that "The deal with McLaren may not go through because of Apple’s recent shift to prioritizing self-driving software instead of developing a car of their own, the Financial Times said, citing sources."
I'm going to have to disagree here, and reprise that first citation: "noting that the talks started several months ago." Perhaps the exodus of several top engineers was the effect of the pursuit of McLaren as opposed to the cause. Why the main stream media will not offer a plausible "connect the dots" narrative of the timing is not surprising, but it is disappointing.
It remains our conviction that Apple Inc. (NASDAQ:AAPL) is building an actual automobile and we can safely assume the branding issues have been laid to rest. The Apple McLaren would combine the two single best brands in this field in the world -- technology and automotive.
CNBC reports that "Phil Schiller, Apple's marketing chief, is said to own a McLaren, and Eddy Cue, its services head, sits on the board of Ferrari" and has just broken news that McLaren is denying the acquisition rumor.
We do note that our conviction could still be wrong and further, the McLaren acquisition is not complete.
The author is long shares of Apple Inc. (NASDAQ:AAPL).
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