Apple Car will see Apple become a ‘full-fledged’ manufacturer with next-level innovations, according to analyst

In a note to investors, investment bank JP Morgan predicts that the “Apple Car” will be a fully autonomous vehicle that Apple manufactures itself toward the end of the 2020s.

Lead analyst Samik Chatterjee believes Apple will “go big or go home” and position itself as a full-fledged manufacturer with the release of the long-rumored Apple Car. The analyst also discusses why the Cupertino tech giant is interested in joining the automobile industry. Apple Car

Apple Car will see Apple become a ‘full-fledged’ manufacturer with next-level innovations

In a note to clients seen by AppleInsider, Chatterjee summarizes a few of JP Morgan’s predictions about the Apple Car. Said predictions include what the release of a car could mean for Apple as well as the automobile industry.

Chatterjee believes Apple will choose the “go big or go home” route for the Apple Car. He goes on to say that Apple will control the rate of innovation to make the vehicle distinctive in the market of battery electric vehicles.

The main reason why the Cupertino tech giant is interested in entering the car industry is that its total addressable market is nearly $2.55 trillion, which is much greater than the smartphone market’s $420 billion. A vehicle could also allow Apple to expand its services.

Apple Car

Though reports about Apple working on a vehicle are not now, Chatterjee notes that recent press reports “indicate expansion and building momentum of intent to participate in the industry.” The analyst also notes that a lack of feedback from other companies in the automotive industry indicates that Apple has been working on developing its vehicle for a while now.

As for the price tag, the Apple Car will no doubt be a premium vehicle and the company will most likely have to outsource manufacturing at first. Profit margins will most likely be lower than other Apple products, but revenue could reach a whopping $700 billion in the premium auto industry.

Other JP Morgan analysts predict the Apple Car to have a negative effect on other automakers in the industry, but a positive impact on whichever company Apple chooses as a contract manufacturer.

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About the Author

Asma is an editor at iThinkDifferent with a strong focus on social media, Apple news, streaming services, guides, mobile gaming, app reviews, and more. When not blogging, Asma loves to play with her cat, draw, and binge on Netflix shows.