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Logical Progression or Irrational Exuberance?

9/25/2016

 
Apple Inc. and McLaren
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​There were some juicy morsels leaked this week that hinted at Apple being interested in a buyout of McLaren. Wow. I don’t think Apple getting into automotive is a very attractive proposition and even I was excited at the thought of Apple owning McLaren. TechCrunch had an interesting take that Apple is probably after a specific division within McLaren that specializes in real world applications for all their technological break throughs. MAT, or McLaren Applied Technologies.
​It actually makes some sense. Apple could benefit in the short term from McLaren’s cutting edge measurement technology and at the same time add more automotive expertise to their growing knowledge database.
 
And it’s not just about measurement algorithms. McLaren may also bring a wealth of knowledge on creating lightweight structures that are strong. Automotive racing is like NASA. Technologies developed to handle extreme situations can often be applied to mass production items with the assurance that they’ll work since they’ve been battle tested.
 
The measurement technologies that McLaren has been trailblazing sound like a real gem. Monitoring a race care in real time to make decisions on the fly could be extremely valuable to Apple. Even less exotic cars like the Corvette already employ monitoring algorithms for things like magnetorheological dampers. These are shocks filled with a magnetic fluid and their stiffness can be controlled via electromagnets. Decisions based on sensor data is made every 10 milliseconds to control dive, squat, and pitch.
 
You might wonder how monitoring software like this could be useful to Apple but there are a myriad of possibilities. There was an article that came out today by DigitalTrends talking about how Apple was patenting a way to eliminate “buttdials”. It makes sense that if your iPhone is monitoring via sensors on the phone, watch, or AirPods,  that it could figure out that the owner doesn’t really mean to make that call. Or who among us hasn’t started a workout and forgot to turn it off before getting into our car and driving off. A continuously monitoring logic could probably figure out that if we just went from 9mph, took a fifteen break, and immediately zoomed to 40mph that we’re probably not still on our favorite running trail anymore.
 
I’ve written in the past that Apple should do what it did with processor chips and “go deep” in other areas. Meaning that they invest further up the chain so that they own a competitive advantage. McLaren looks like it could accomplish this in more than one area.
 
Apple is a company with a vested interest in working with materials that are both strong and light. They are also a company that is trying to sift through sensor data in real time to make assumptions on what the owner wants. Plus, they’ve been researching how they might apply their design and mass manufacturing abilities to the automotive world. McLaren helps Apple in all three of these areas. The question is, and only Apple can answer it, does McLaren bring enough to the table to warrant a buyout?
 
What's in it for McLaren? Just the lifeblood of racing, money. The amount of money necessary at this level is competition is enough to make the Toyotas and Fords double check their bank accounts before writing a check. I wouldn’t be surprised if the whole purpose of MAT was to try and bring in more revenue to fund their racing efforts. Could they be selling the family crown jewels because they have no choice? Getting bought by Apple would be like Michelangelo finding his patron.
 
Cooler heads need to prevail at Apple when evaluating the cost/benefit analysis. Because McLaren is one hot and sexy proposition. I’ve worked at three companies that dove into auto racing as a sponsor and it seems that the management teams could rationalize any amount of money spent when it came to auto racing. It’s always immensely popular amongst the rank-and-file  and the marketing department has no end to promotional activities.
 
I still don’t think that Apple should build it’s own car. But the prospect of Apple purchasing McLaren makes me feel like a college kid who said that he was going to study for his final exams all weekend only to find that Margot Robbie is standing at my door on Saturday night wanting to know if I’m busy

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    Robert Perez

    Manufacturing and distribution analysis since 1993.

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