Profit Margin: Auto vs. Apple vs. ODM

Apple has a tried-and-true approach to launching new products: The company designs in-house, sources its own components, and works with a contract manufacturer to assemble it for sale. To build a vehicle, Apple has 3 primary options: Partner with an existing carmaker; build its own manufacturing facilities; or team up with a contract manufacturer such as Foxconn or Magna International. Eric Noble, president of consulting firm the CarLab, has indicated that Apple is more likely to go with a contract manufacturer because that is the business model they are used to. (CN Beta, Bloomberg)