Rumours of Apple making a car have been swirling on the internet for years now. However, it was not until recently that some concrete information leaked. The noted Apple analyst Ming-Chi Kuo of KGI Securities said that the first car from Apple will not launch until 2025.
“I’d expect it to be something like [Apple’s] wearables business,” said Wedbush analyst Dan Ives. Apple’s wearable business has grown immensely over the years – the Apple Watch and the AirPods have been a major success. “Over the next five to seven years, EVs could be 5% to 10% of total revenue.″
Major source of revenue
Apple Car, if ever made, will be a major source of revenue for the company. The Cupertino based company knows how to conduct business and if it ever releases a car, it will very likely be a major release. However, some people in the tech industry continue to think that Apple will not actually make a car but will only work on the software side of things. The hardware i.e the actual car itself could be built by a known car maker in partnership.
“Apple would never get into it if it weren’t both an electric vehicle and an autonomous vehicle,” said CFRA analyst Angelo Zino. “Transportation will go through massive disruption.”
Either if Apple is designing a car or just the software side of things, self-driving will very likely play a key role in all the development and the release. The future of cars is self-driving but it will take years before the technology becomes stable so that it will be safe to have all vehicles drive by themselves.
“A noticeable percentage of Apple’s revenue comes from products and services that didn’t exist three to five years ago,” said Morgan Stanley analyst Katy Huberty. “Smartphones are a $500 billion annual [market]. Apple has one-third. The mobility market is $10 trillion, so Apple would need only 2% to be the size of their iPhone business.″