JP Morgan expects Apple Car “in the late 1920s”

According to analysts at JP Morgan, the Apple Car will be a fully self-driving vehicle that Apple will produce in the late 1920s.

In a note sent to investors, chief analyst Samik Chatterjee outlined some of JP Morgan’s predictions on the “Apple Car“. Chatterjee expects the company to take a “go big or go homeHe adds that Apple will seek to control the pace of innovation to differentiate the “Apple Car” and position it in the growing market for self-driving battery electric vehicles (BEVs).

The main reason Apple is interested in the auto industry, Chatterjee says, is that iits total market is nearly $ 2.550 billion, far exceeding the 420 billion of the smartphone market. Apple also has an important opportunity thanks to a user base of 1 billion people who will love the seamless integration between the Apple Car and the company’s ecosystem.

Although speculations about an Apple electric vehicle are not new, the analyst notes that recent rumors confirm a momentum towards the start of production of the first vehicle made in Cupertino. Chatterjee also notes that the lack of feedback from other parts of the auto and tech industry likely suggests that Apple has focused on developing its own intellectual property without relying on third parties.

Obviously, there may be some obstacles to Apple’s entry into the automotive sector, which has always been very challenging and risky. As this is a mature market, any growth must come at the expense of existing car manufacturers. Despite this, Chatterjee still predicts that Apple will position itself as a full-fledged producer, as the company is likely considering a shift towards autonomous vehicles as an opportunity to differentiate its offering.

Financially, the Apple Car will be a premium vehicle and the company will initially prefer outsourced manufacturing. Gross margins are likely to be much lower than Apple’s other hardware products, but revenue could hit record highs.

The key component of revenue, Chatterjee adds, will likely be services that could improve the vehicle’s low margins, especially if it’s a closed ecosystem.

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Source: iPhone Italia by www.iphoneitalia.com.

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