What Apple Should Do Next

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Idea: Apple Auto

Apple has already collaborated with automakers from Ford (F) to Ferrari to make sure iPods connect to car stereos. Brown sees greater possibilities. Even the best navigation and multimedia dashboard systems, such as BMW's (BMWG.DE) iDrive or Audi's MMI, are overly complicated, he says. An Apple partnership, likely with a luxury nameplate, could yield improved in-vehicle software. Even better? An Apple-branded micro car 脿 la smart or Mini. "People are already used to paying a premium for Apple products," says Brown, an analyst with the Los Angeles consumer marketing firm Iceology. "Apple could create a youthful, stylish, small car and still command top-shelf pricing."

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