“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