Gross margin for the three months ended September 30, 2013 was 23.9%, a slight decrease from 24.8% for the three months ended June 30, 2013, as a result of significantly lower sales of regulatory credits, partially offset by continued Model S cost improvements and manufacturing and supply chain efficiencies, an increased average selling price due to the start of European deliveries, as well as a higher mix of 85 kWh battery packs and other options.
Too many ifs, ands and buts Apple has no business -- or need -- to take on.
The moment Apple gets too cute -- buying Tesla or doing some over-the-top health-focused wearable qualifies IMO -- is the moment you worry. Success at Apple isn't easy, however it is a relatively straightforward proposition: Produce devices your customers upgrade every year or two. Make them sticky thanks, in part, to attendant (and improving) software and services, aka features.
This leads to the "however" that led off this article.On the surface, it's telling that General Motors (GM - Get Report) decided to feature Eyes-Free Siri on the commercial it's running for the Chevrolet Equinox. These spots have run prime-time during the Olympics on NBC. They intrigued me so much that I called up my contact at GM, who set me up with a test drive of an Eyes-Free Siri-equipped Chevy vehicle, which I will take possession of next Tuesday. I'll drive the vehicle around for a week, experience Siri compatibility and report back both in print and video. Though I'm not sure how much control Apple has over GM's use of Siri in advertising (intuitively I would think quite a bit, however, given the way third party retailers have their way with Apple's brand, I'm uncertain), I have to think Eyes-Free Siri is ready for primetime if Apple and GM are both, presumably, on board with promoting the heck out of something in perpetual beta. So, again, I'll let you know how it goes with an assessment of how Eyes-Free Siri performs today and what might lie ahead. I'm thinking it has the potential to be much more exciting than the stuff the lamebrain media likes to obsess over. Buying Tesla and predicting heart attacks is sexy, but it's nothing Apple has even come close to chiming in on, let alone confirming. For the record, while few others have paid attention to Eyes-Free Siri, it has been on TheStreet's radar for awhile. I published Can 'Eyes-Free' Siri Stand the Media Hype in the Summer of 2012, shortly after Apple announced the feature's existence at its Worldwide Developers Conference. In that article, I threw water on what was then over-the-top hype. The sort of hype that claimed Apple, via Siri, would crush Pandora (P). Didn't happen. Here again, another case of the media jumping on the sexy angle. When the climax never comes, it moves on. But that doesn't mean Apple has moved on. It's still working on making everything it does the best it can be ... so it can sell hardware of course. While TheStreet's Richard Saintvilus was one of the guys caught up in that euphoria, he provided solid coverage on Siri into 2013 (after the initial hype wore down). I encourage you to see my story from a year ago this month, Is There a Media Conspiracy Against Apple, where I provide links to Saintvilus's work. It's well worth your time if you want to understand how Siri could play an integral role in Apple's future. Eighteen months later, you'd have to think Siri's in-car capabilities have come a long way. If they haven't, it borders on idiocy to allow GM to tout them on television, let alone in primetime during the Winter Olympics.
Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.
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