Analyst: Apple can revolutionize, disrupt the auto industry

“Whether Apple builds an entire car from scratch or not, it will have a significant presence in the automotive industry in a few years, according to the latest note from Morgan Stanley, which put forth a plan of attack that could turn the iPhone maker into an iCar maker,” Jennifer Van Grove reports for TheStreet. “‘”The world’s richest, most valuable company is taking on the world’s most disruptable business,’ analyst Adam Jones wrote in the note. He cautioned investors not to be dismissive of the Cupertino, Calif., company’s ambitions to build its own electric vehicle, as recent reports suggest Apple is doing.”

“Apple doesn’t need to build a car from the ground up to assemble a new business more profitable than the iPhone. Up for grabs, per Morgan Stanley’s calculations, is an auto market valued at around $10 trillion, with global new car sales totaling $1.6 trillion annually,” Van Grove reports. “‘If Apple were to corner just 25% of the value of the car, it would be equivalent to the entire smartphone industry today,’ Jones said.”

“Apple’s prowess in the infotainment business will spread to the rest of the automotive interior as the company applies its celebrated design credentials to everything from additional car interfaces to ergonomics, dials and controls. Though the company surely will take its time on interior design, it could theoretically go from concept to production in 12 to 18 months, according to Morgan Stanley. Apple will then grow its presence in the car from the inside out, the firm believes,” Van Grove reports. “Apple’s auto takeover won’t be happen overnight — it could take five to 10 years to engineer a new electronic vehicle — but Morgan Stanley sees Apple applying some of its phone-producing strategies to creating cars, meaning it will likely do the design and development work in-house, but outsource the production and assembly.”

Read more in the full article here.

Related articles:
Like a siren, the auto industry sings to Apple – February 24, 2015
Enter the Apple Car – February 24, 2015
Apple will be a supplier to the car industry, not a competitor – February 23, 2015
Do not underestimate the Apple Car’s Potential – February 23, 2015
Apple Car: Forget ‘electric,’ think hydrogen fuel cells – February 20, 2015

11 Comments

  1. 1. Let us beware of apples vs. oranges. 25 % of the value of the car ? What does this mean. I’m just saying: don’t throw numbers around carelessly.

    2. I don’t believe the 10 year time frame. To me, it seems ludicrous that Apple would be that slow once the “go” is given.

  2. The jouranalists are having quite the piss festival with the car. Nothing factual, just notes between jouranalists. It stinks, it reeks but by gosh the stock looks good.

    1. Way to many car systems expert have been hired by Apple lately for this to be just blue smoke and mirrors. It is clear they are seriously considering a run at this. I just hope nothing upsets their Apple CARt, I want one already, and please, no fuel cells. Ultra capacitors only, like barium titanate or maybe carbon buckytubes, anything that charges quickly from existing electrical outlets. If they can crack that tech, they will be a multi trillion dollar company in a blink.

  3. I just wish Apple could make a next generation iTunes before they take on the auto market. Fanboys keep saying that the automakers are old guard with old ways and antiquated, but the same could be said about iTunes. I know of no one who believes this is first in class product and yet it is the hub of all that is Apple.

  4. What I want to know is how secret this 5-10 process can be. Presumably they are floating the plan now because this ship will be waaaaay too big to hide. So how much will we know, and when?

  5. Between Tesla, Google, Apple and Amazon treading into the automotive establishment, if nothing else current auto execs better get the message that their status quo ain’t cutting it. There about to wake up to find that someone stole their cheese.

  6. Let us just pause for a minute and look at both sides of the coin here.first look at tails. Apple has no business in making a car. The entire US automotive industry was on life support a few years back. President Obama bailed out GM and Chrysler with our tax money. Ford was in bad shape too but did not take the bail out. At Ford they were smart and had some money away for a rainy day. And grew even smarter by dumping the present Sync made with Microsoft and now has Sync 3 made with Apple’s help. Apple and Ford are one in the same. So the way the market is now, the way our government is now making a car is not a good idea for Apple. And Apple been through this mistake before trying to take on the cable companies with the ATV and failed.
    Now lets look at heads. Apple can be a rebel and put the whole American Automotive industry on it’s ear and the big government with them. They can use a technology that has been around since the 1960s and it tried and true. It supported the US Space program since Gemini. And only 2 car companies had the guts to make these cars and they are both owned by the Japanese. Honda was the first and now Toyota: A Fuel Cell Car. Why has not the US automotive industry think of this? The tech been there for over 50 years? So if Apple wants to make a car this is what is going to have to be a fuel cell car. Not a electric car. Battery tech is not good enough yet. The highest is 150 miles, maybe? But a fuel cell car all you need is one tank like gasoline instead you put hydrogen and the exhaust is water.

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