Mercedes-Benz chairman Dieter Zetsche
It happens each time there is talk that Apple is preparing to enter a new product category: industry leaders issue the standard statement that they’re unfazed by potential Apple competition because 1) Apple makes computers and 2) this is their turf, their expertise.
Almost like fulfilling the prophecy, head of Mercedes-Benz cars Dieter Zetsche recently did just that while discussing the rumor with Australian publication motoring.com.au:
“If there were a rumour that Mercedes or Daimler planned to start building smartphones then they (Apple) would not be sleepless at night. And the same applies to me.”
Zetsche added that his position in saying that Apple building a car would be like Mercedes building a smartphone is “full of respect” for the iPhone maker.
As for that prophecy, the Mercedes-Benz chairman’s comments certainly draw recollection to former Palm CEO Ed Colligan’s famous line about the iPhone: “PC guys are not going to just figure this out. They’re not going to just walk in.” They did. More recently, Swatch CEO Nick Hayek made a similar claim discounting the smartwatch market. Now Swatch is planning its own just in time for the Apple Watch debut in April.
For Zetsche, however, it probably doesn’t help that Apple hired the automaker’s head of research and development among a long list of other auto industry experts to drive the company’s electric vehicle project with a reported 2020 target.
For the record, GM’s former CEO didn’t look both ways before crossing the street either.
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Well, he has a point – for now. Let´s wait for 2020… ;-)
L’histoire sé répète. We’ll see you in 2020.
Funny, thats what they said when Apple was building the iPhone
I wonder if Nokia’s Chairman or CEO has said something similar when he first heard about the iPhone?
Yes! Their mission is to bring new ideas and technology…electric cars is the way of the future
Stupid question to ask him. Perfect response.
The difference is, when everybody criticized the first iPhone, there was a market-ready product to have a discussion about. Most ppl liked it, some didn’t. Fine.
But why on earth would the chairman of a world-class car maker worry about a rumor (!), which realization is at least (!) five years away?
Yes because I’m absolutely certain if he were worried, he’d say ‘yeah honestly Apple is going to crush us in 5-10 years’. Now, if he were unable to lie, it would be a viable question, just as asking about the watch to watch markers would have been a viable question. Too bad journalists strictly do things for views. I mean, I guess what I’m saying is that of course they’re going to ask him this because they want money, but I hope they know how stupid a question it is.
He said, “Apple can’t possibly put four wheels on an iPhone and drive passengers around on it. An iPhone is simply too small to make a decent vehicle. Just like you can’t put one of our Mercedes in your pocket and make phone calls with it. These are just some of the laws of nature. A company outside of a field can’t possibly do something better than a company already in that field. It’s like a universal constant.”
“We’ve been building automobiles since 1886 and there’s nothing that we don’t know about building automobiles. Five years? Are you kidding me. There’s more parts in a high-end Mercedes than in a Boeing Dreamliner.”
He should ask blackberry how that attitude worked out with the phone industry
This doesn’t surprise me coming from Mercedes. When the IIHS started their new small offset crash test a couple years ago, the C class didn’t do so well. In their arrogance, they said that they had all the confidence in their products and less confidence in tests that don’t reflect that.
Style doesn’t sell cars anymore, it certainly helps, but people are looking for a 21st century car – one that is powered by battery, full of technology and in time, it will drive itself. Battery cars don’t require the same thing combustion engines require, they do require loads of technology and that is why apple, google, and tesla will come out ahead within a few years. Apple is a master at mass production and I can guarantee they will have maybe two cars at best and they will all have the same exact options – color choices is the only thing we should ever decide on. How does this help – apple can drive down the prices because they are not designing 20,000 different parts for hundreds of suppliers and offering hundreds of customizations on a 20 different cars by one manufacturer. They will be the “Ford” of the early 20th century. You can any color you want as long as it’s black!
History is doomed to repeat itself. If and when Apple does enter the car market as rumors indicate, I would imagine it would be just like all the other markets they entered. Remember Blackberry? Remember Palm? Remember the RIAA and their crusade against selling digital music? One day, we will say, “Remember Mercedes?” (If Apple does enter the market, that is…I don’t think they are anywhere near stupid, nor do I think they would jump into something where they don’t have any massive value to bring and problem to solve.)
In vain…
It is worth it to recall that SHELL started from the shity shell shop. You never know how it will go…
:x doesn’t that sound familiar?!
Just like Balmer wasn’t too concerned in 2007.
“Just like when…” “Just like when…” Even if you blindly love Apple and buy up everything they make, pause is warranted. Apple is exploring COMPLETELY new territory with a product that will cost FAR more than anything else they’ve ever sold. Toss in the current dealer sales model fighting direct consumer sales, and you have reason acknowledge the challenges ahead. I don’t think this is a classic case of Apple making something we didn’t know we wanted. Car design and sales is a hard business.
Before, it didn’t matter one way or the other to me, what Apple’s intentions were. Now with all these “They can’t” and “I’m not worried” rants flying around, I DO hope they build a car, and I hope them and Tesla wipe the floor with the old-school auto makers. Eff them.
Wow, Apple must just love the fact that idiots like this are currently so influential in today’s world. They are an older generation that is so outdated and unwilling to use their imagination to see the future.
We have swiss watch makers laughing about the Apple Watch. I am a huge mechanical watch fanatic (I’m currently thinking about double fisting after the Apple watch comes out), but do they really think in the long run, people are going to waste precious wrist real-estate for something that only tells time?
Now for cars… I’m sure this guy gets all hot thinking about his future models racing on the track in 5 years. Are people going to care about what we consider to be important for a car right now once the landscape of cars have changed? If the car can drive itself and I can get some extra sleep, get work done, watch the Apple TV they are sure to install on board…. will I care that its not a Benz?
Apple just disrupts markets where people are stuck in their ways, but they have the capital to change the industry. Can’t wait for this guy to see the results if he is still alive then.
I’m pretty sure Apple can’t make a car that works properly in a cold climate. Keeping cabin temperature on a decent level requires a fossil fuel based heater. Apple would prefer the driver to freeze, than to offer this kind of heater. The batteries can’t offer 2-3 kW power needed for heating without seriously compromising the operating range. Apple designs devices in a pleasant, sunny climate. They probably will run the “winter” testing in a cold climate lab and when they realize they can’t beat the winter with the electricity alone, they let the marketing department make up something to cover this up. Or… they will relocate all the people living in a cold climate to sunny California or an equivalent area. I really hope I’m wrong about the problems I’ve presented.
As an Apple Fan, like most of you and a Mercedes Owner, I don’t think the comparison several commenters have made in regards to history repeating itself when similar comments from CEO’s were made prior to the launch of previous Apple product-lines.
Considering Apples main line of business initially was computers; iPod, iPhones, iPad, Apple Watch in essence are mini-computers, with the structure of development and the component-types very similar. So, in that case, those products were well aligned with Apples expertise. From the beginning, Apple has focused on the UI – as that is our connection with those devices.
The automotive industry is a totally different kettle of fish. The manufacturing process is entirely different, the components are more complex, there is more regulation and they cant rely on Foxconn and similar companies to make a car for them. The decision-making process behind buying a car is multi-faceted – and the UI/visuals are only one element of that.
Mercedes made the first motor car in the world in 1885/86 – and their 130-years of experience in that industry is unrivalled. Even if Apple do make a car, that one car can’t compete with the whole of Mercedes-Benz. It’ll merely compete with a certain variation of a model. From what I envision, it may be more of a competition to the BMW i3, Nissan Leaf (not sure if available in the US) etc. I personally don’t think it’ll even be much of a threat to Tesla, because considering Tesla’s and the electric motor car industry’s rate of growth and development, the market will have far advanced to what we see today. I consider Tesla to be the ‘Apple’ of the automotive industry – and it has taken Tesla 12 years to get the point it is at today. With a Market Cap of $26B, Apple might be better of buying Tesla.
Another issue would be the average Apple customer and the price of the car. The majority of Apples product line is sub-£2000 – and a percentage of us will have that level of disposable income to spend on Apple, or are willing to give Apple-products some sort of priority in our lives to make financial sacrifices to purchase the latest products.
However, when it comes to a car, the price will suddenly be significantly higher – possibly around £15-30k – and that then becomes more cumbersome to manage even on a finance plan. A car is more of a short-term life choice rather than an impulse buy.
Im sure I read comments about how a relatively small number of customer are expected to purchase the Gold Apple Watch – and a car will cost even more than that.
Of course, at this moment in time, they are simply rumours. The recent hires from the automotive industry may well be for something else – as Apple likes to have the best talent in the world even for smaller projects. How many leading executives and senior figures of luxury fashion houses has Apple hired for its Apple Watch?!
Yup, they said that about the iPod, iTunes Store, iPhone and the iPad.
They were all VERY WRONG! Apple capitalized on every product which is why it is the most profitable company in the world right now.