According to reports from investment bank, Piper Sandler analyst Harsh Kumar, the debut of Apple Car may not change the automobile market. However, Kumar claims that its launch will generate hardware revenue of up to $30 billion for Apple by 2013. This is quite a huge claim and it’s too early to tell how things will play out.
However, Piper Sandler has a reason(s) for its latest report. Kumar said “Overall, we think Apple entering the automotive market makes perfect sense. Similar to its other hardware offerings, the company can enter the market at a time of peak technology disruption while avoiding the risk of forming the market,”
According to Kumar, Apple’s target for 2024 will be 100,000 cars. The report claims that Apple can get up to $5 billion in revenue from this number. If Apple eventually takes up to 1% of the market, its revenue could grow to $30 billion by 2030.
Apple may initially launch Apple Car electric cars on a small scale. These cars may use a better CarPlay system, or Apple-branded car user interfaces. However, Kumar believes that Apple will eventually launch a “mature Apple brand electric car.” By then, Apple can control all aspects of the design, including electric vehicle hardware and built-in software platforms.
Right time for Apple to enter the automobile market?
Kumar believes that now is the right time for Apple to enter the auto market. This is largely because Apple is ready for technological innovation. In addition, as products such as iPhone and Mac mature, Apple also needs additional revenue to drive growth.
Kumar also pointed out that even if the “Apple brand” is selected, the company will choose third-party manufacturers to produce this product. He said that Apple does not assemble its own hardware products. Nonetheless, Kumar believes that Apple’s development of automotive technology has been brewing for many years. He also believes that Apple Car will beat the competition in terms of powerful technology.
As early as 2014, there were reports that Apple has more than 1,000 employees to conduct research and development of electric vehicles. The name of this secret project is “Project Titan”. However, there were reports at the end of 2016 that Apple had scaled down the car’s research and development project and had no intention of building a complete car. However, the company is focusing on the development of autonomous driving software systems.