For some time now, automotive industry news has turned to Cupertino tech giant Titan’s project; The car is said to be unveiled and marketed in 2024 with the next generation battery technology. In a note to investors, Goldman Sachs, a banker and Apple business partner in offering the Apple Card credit card, claims that Apple Car’s ambition will likely focus on providing a car service experience; This means that the physical vehicle may not be in use.
Rad Hall, Goldman Sachs analyst begins his latest note to investors by saying that the automotive industry has historically been a low-profit industry, and that Apple’s great interest in the automotive industry is because it allows people to spend more time using Skip the iPhone. Rad Hall’s statement is as follows:
Low profit margins are not limited to the automotive industry. Without the iPhone, for example, the smartphone industry would be a low-income or even unprofitable business; But Apple makes a lot of money from it. in fact, [اپل] It is not a company that has a problem in determining how to earn revenue from the goods it sells.
The main reason that Apple and other technology companies want to enter this field is that many consumers will spend a lot of time in their cars using services.
According to Radhall, Apple, despite its ability to integrate software and hardware, may not present the Titan project as a physical, stand-alone vehicle and follow in the footsteps of the service provider; Almost the same trend that Apple TV has created in the TV industry. The electric vehicle market could grow to $ 1 trillion over the next decade, turning it into a great opportunity, Hall said; But the industry’s profit margins will still be lower than those of the tech industry, which may make Apple’s service model more attractive. He says:
We believe it would make sense for Apple to be in the automotive industry as a hardware-supporting platform for its services; But the low profitability of the auto business probably means that investors in this area will have a limiting effect on earnings. Apple is likely to follow a similar path in the TV industry, turning to a service provider in the electric vehicle market instead of producing a low-income car. This method may be almost as useful without the need to develop and sell an electric vehicle (EV).
According to Wall Street analysts, the long-under-construction Apple car is unlikely to be the standalone vehicle that fans have been waiting for. Dan AyesAnalyst Wedbush notes that given the arduous availability of automotive capabilities, including battery technology and surveillance barriers, the probability of Apple unveiling an electric personal vehicle (EV) by 2024 is only 35 to 40 percent, and that automobiles will be built. It may take longer due to safety and monitoring issues.
Eves believes that Apple is forming a strategic alliance and partnership with a major industry player, such as Volkswagen or Tesla. Ilan Musk (Tesla CEO) says that in 2017, when he was facing economic problems, he contacted Apple and Tim Cook (Apple CEO) himself to offer Tesla to the technology giant Cupertino for the eleventh price of its current value; But in the end, Tim Cook withdrew from the meeting for possible talks.
Contradictory rumors have been circulating about the Titan project so far. Some reports predict that the Cupertino-based tech giant will focus on developing technology to facilitate the construction of self-driving cars; But another report suggests that Apple could develop a full-fledged vehicle. For example, analysts at Morgan Stanley claim that Apple will be an influential competitor to leading electric vehicle (EV) manufacturers and could start a fierce competition with Tesla. The Cupertinos are also said to have a unique position to innovate in automotive systems and renewable energy technologies.
According to Reuters, Apple can start producing physical cars from 2024; But it is possible to limit the scope of vehicle development to self-propelled systems and hardware kits that can be integrated with the vehicle. However, it is believed that the restriction created due to the epidemic of the Corona virus could delay the introduction of the Apple Car until 2025 or even more.
What do you, the Zomit users, think of Apple’s cars? What policy do you think Apple will adopt towards this product?