“Weighing in today on The Journal’s story yesterday that Apple’s (AAPL) going to ship its own car in 2019 are Morgan Stanley analysts Adam Jonas, who follows Tesla Motors (TSLA), and is one of the biggest bulls on its stock (he recently set a $465 price target, as my colleague Ben Levisohn noted), and Katy Huberty, the Morgan analyst who regularly follows Apple, and who is a bull on its stock,” Tiernan Ray reports for Barron’s. “The assessment of the authors, and their co-author colleagues: This is big.”
We believe the opportunity for tech firms to disrupt the auto industry is large enough to fundamentally and permanently change how investors view transportation… setting off a wholesale reassessment of end market sizing, growth, competitive dynamic, margin potential and valuation […] The addressable market for mobility is on the order of $10 trillion (10 trillion vehicle miles x $1/mile), more than 13% of global GDP. This figure ignores the value of the time of the driver, infrastructure, social and environmental costs… If the world’s most valuable company were to make a car, we strongly believe it will be an all- electric, battery-powered vehicle. 
Having a company with Apple’s resources and technical expertise throw its weight behind EVs could accelerate development and consumer adoption.
Ray reports, “Interestingly, the authors make no mention of Tesla, nor of General Motors nor any other auto maker, but they opine, ‘a potential confirmation of Apple making a move into the car industry could represent one of the most important moments in the history of transportation.'”
Read more in the full article here.
MacDailyNews Take: As we wrote back in March: When Apple enters markets, it’s because they can bring something(s) so unique to the table that significant disruption is inevitable.
Apple does not enter markets simply to compete with the rest of the existing dreck. Apple only enters markets when they can disrupt them. See: Palm, BlackBerry, Nokia, etc. In other words, it’s never too soon to start praying for more government bailouts, GM et al.
When Apple looks at what categories to enter, we ask these kinds of questions: What are the primary technologies behind this? What do we bring? Can we make a significant contribution to society with this? If we can’t, and if we can’t own the key technologies, we don’t do it. That philosophy comes directly from [Steve Jobs] and it still very much permeates the place. I hope that it always will. – Apple CEO Tim Cook, March 18, 2015
SEE ALSO:
Former GM Vice Chairman Bob Lutz: Apple Car ‘is going to be a gigantic money pit’ – September 22, 2015
Apple speeds up electric-car efforts, aims for 2019 ‘ship date’ – September 21, 2015
Apple meets California DMV officials to discuss ‘autonomous vehicle’ – September 18, 2015
Documents confirm Apple is building self-driving car, Project Titan further along than many suspect – August 14, 2015
Apple Car development proceeds apace – July 27, 2015
Apple hires veteran Fiat Chrysler auto industry executive – July 20, 2015
What’s up with Carl Icahn’s sudden obsession with the Apple Car? – May 18, 2015
Survey: 77% of hybrid or electric vehicle owners would likely buy an Apple Car – May 13, 2015
Apple’s ‘Project Titan’ could reshape the auto world – February 22, 2015
Apple Car: Forget ‘electric,’ think hydrogen fuel cells – February 20, 2015
Meet Steve Zadesky, the reported leader of Apple’s ‘Project Titan’ – February 17, 2015
Forget the rumor: Apple will never build cars – February 17, 2015
The real battle Apple is waging in autos – February 17, 2015
O’Leary: Yes, give me the Apple car – February 17, 2015
Will Apple become a car maker or a platform/content aggregator? – February 17, 2015
An Apple Car is exactly what investors want – February 17, 2015
Apple’s electric car dreams may bring auto industry nightmares – February 17, 2015
Jean-Louis Gassée: The fantastic Apple Car is a fantasy – February 16, 2015
Apple is already positioned to be a car company in many ways – February 16, 2015
Why Tim Cook would want to build an Apple Car – February 14, 2015
Apple working on self-driving electric car, source says – February 14, 2015
Apple’s project ‘Titan’ gears up to challenge Tesla in electric cars – February 13, 2015
Apple’s next big thing: The Apple Car? – February 13, 2015
Apple hiring auto engineers and designers – February 13, 2015
Apple working with Intelligent Energy on fuel cell technology for mobile devices, sources say – July 14, 2014
North Carolina regulators approve Apple’s 4.8-megawatt fuel cell facility at Maiden data center – May 23, 2012
New aerial images of Apple’s planned NC fuel cell, solar farms published – April 7, 2012
Apple’s massive fuel cell energy project to be largest in the U.S. – April 4, 2012
Apple patent application reveals next-gen fuel cell powered Macs and iOS devices – December 22, 2011
Apple patent app details highly-advanced hydrogen fuel cells to power portable devices – October 20, 2011
