Experts say the iPhone’s impact could offer bleak prospects for established auto manufacturers.
Nothing has been announced about Apple’s alleged plans to make its own electric car, although rumors about such an “Apple Car” or “iCar” have long been circulating.
However, there are many indications that Apple is already working on such a vehicle. Reuters news agency wrote, among other things, that they will come up with such a vehicle, which is likely to be an electric vehicle with a very advanced technology, in 2024.
New analysis by reputable brokerage Bernstein suggests that if Apple actually produces its own electric car by 2025, it will sell 1.5 million vehicles within five years. Writes CNBC News, that too Finansavisen Refers to Tuesday.
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A major threat to the facility
The successful launch of Apple’s electric car will provide a formidable competitor to the well-capitalized auto industry, says Bernstein analysts, led by Arndt Ellinghorst, in memo.
Tesla’s influence and importance to the auto industry in recent years cannot be overstated. Elon Musk cared little about big profits and profitability at first. Instead, Tesla devoted significant resources to developing new design, production methods, and software that revolutionized the auto industry.
However, Bernstein analysts believe that Apple’s entry into the electric car market could shake established automakers even more, and that it would be much worse for them than Tesla.
We believe that Apple’s entry into the auto market will affect traditional automakers more than new competitors like Tesla, just as the iPhone’s entry into the smartphone market, analysts believe.
And they point out that it was established manufacturers like Nokia and Blackberry, not competitors like Samsung, who suffered the most from the launch of the Apple iPhone.
Recently, the 2019 Nobel Prize Laureate in Chemistry, Akira Yoshino, also said in a Interview with Reuters He believes the world should pay attention to Apple’s electric cars.
Tesla has its own strategy. But you should pay attention to Apple. What will they do? I think they will announce something soon. What kind of car are they going to launch? What kind of batteries? They’ll probably enter around 2025, Yoshino said. If they do, I think they’ll release something by the end of the year.
Could be great for Apple
If Apple agreed to make such a car, the investment would provide Apple with revenue of $75 billion and make up about 15 percent of the tech company’s total revenue, Bernstein believes.
Analysts expect revenue growth to double from three per cent to six per cent if Apple launches iCar.
Bernstein estimates that today’s auto market is worth $2 trillion – or $2,000,000,000,000,000. Therefore, analysts concluded that it makes sense for Apple to be interested in this sector.
Read also: Investment bank sees 70 percent rise in Tesla
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