We all know about Apple’s intentions about creating a car and experts say with this move the company might generate $50B in revenue by 2030.
The automotive industry is fairly well established. As such, Harsh Kumar, an analyst at Piper Sandler, does not expect Apple to dominate the market, but that does not mean it can generate little revenue. The analyst said: “Overall, we think Apple entering the automotive market makes perfect sense. Similar to its other hardware offerings, the company can enter the market at a time of peak technology disruption while avoiding the risk of forming the market.”
The analyst expects it to be a “full-blown Apple branded electric vehicle.” A car that according to the most recent reports could have 100,000 units by 2024. Based on this Kumar estimates that $5B in revenue can be generated by Apple from just 0.1% of the vehicle market. With a 1% market penetration, which could be reached by 2030, the figure above becomes a $50B profit.
For Kumar, now is the time for Apple to enter the automotive business with Apple Car, partly due to the technological innovation that is enveloping this market. That source will also allow Apple to continue growing quarter by quarter beyond sales of the iPhone, the Mac, or the services division.
It is clear that Apple’s plans for the Apple Car could shake up the industry down to the last manufacturer. We don’t know what exact project Apple has in mind, nor do we know about timelines and dates, but we do know that Apple has the ability to change the automotive industry for the better forever. We have already seen it with the iPhone.
