Would the McLaren P1 sports car fit in Apple's plans? (PRNewsFoto/McLaren Automotive)
Apple is in talks to buy British super-luxury carmaker McLaren Technology in a deal valued at £1 billion to £1.5 billion, or $1.3 billion to $2 billion, according to the Financial Times. Such an acquisition would bolster Apple's attempts to build its own car, an effort it has all but acknowledged publicly.
However, buying McLaren would be an odd move. Yes, the company is certainly affordable for Apple at that price, and it would give the Cupertino computing giant the technological expertise in a new space. But McLaren is known for making ultra-expensive cars that only appeal to a top 0.01% of car buyers. (Update: McLaren said in a statement, "We can confirm that McLaren is not in discussion with Apple in respect of any potential investment.")
Last year, McLaren produced only 1,654 vehicles and the least expensive models sold for well over $200,000. That makes Tesla, which produced more than 18,000 vehicles last quarter, look cheap and mass market. The Tesla Model S starts at $75,000, and its new Model X sport utility vehicle is priced similarly. Meanwhile, Tesla CEO Elon Musk has been adamant that the company needs to produce less expensive cars. The upcoming Tesla Model 3 is supposed to cost less than $30,000 after tax incentives.
One would think Apple had learned its lesson from the failed Apple Watch Edition, the most expensive version of its wrist wearable. Last year, the company sold the 18-karat gold version at a starting price of $10,000--far beyond the means of most consumers, many of whom didn't see the benefit of the $350 Apple Watch Sport.
By all accounts, the ultra-expensive Edition versions bombed. Apple's new high-end models announced this month cost significantly less, topping out at $1,300. That's still a luxury watch, but one that fits comfortably within the range of prices Apple sets for its iPhones, iPads, and MacBooks.
If or (perhaps more accurately) when Apple enters the car market, it will need to do more than reach the super-wealthy buyers who currently consider a McLaren. That will require mass production expertise, not specialized sports car knowledge, something that Tesla struggles with even now.
Perhaps Apple is looking for automotive technology wherever it can get it, and McLaren is unquestionably easier to buy than a big automaker like Ford or GM. Still, as we keep an eye on the reported acquisition talks, it is right to question whether this kind of deal makes any sense for Apple.
