Xiaomi and Huawei have both introduced high-selling electric vehicles. Why did Apple fail?
Автор: Inside China Business
Загружено: 2024-04-15
Просмотров: 27350
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Xiaomi sold 90,000 of its new SU-7 sedan on the first day. The SU-7 is similar in styling and features to the Porche Taycan, but at about a fifth the price. The Xiaomi model is also priced well below Tesla's Model 3.
Huawei also offers EV, with a pricing strategy to appeal to the mass market of buyers.
At about the same time Xiaomi and Huawei launched their new models, Apple announced that they would abandon their decades-long quest to build an EV. So why were Xiaomi and Huawei successful, and also much faster to market, compared to AAPL and its $3 trillion market cap?
The proximity and depth of China's supply chains in Electric Vehicles is key. China enjoys near monopolies on many of the natural resources and industrial processes integral to EV manufacturing. By the time Huawei and Xiaomi decided to enter the industry, it was already too late for anyone else who isn't already here.
In the EV market, Tesla and Volkswagen may be able to compete globally against BYD, Huawei, Xiaomi, and other Chinese brands; that's because Tesla and VW have factories here, and deep supply chain relationships. Nobody else has a chance. Not even Apple.
Resources and links:
Apple isn't making an EV, but Chinese phone makers are showing they can https://www.wsj.com/business/autos/xi...
Apple ends quest to build electric vehicles https://www.wsj.com/business/autos/ap...
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