By
Godfrey Benjamin
April 23rd, 2024
As the analyst has explained, Apple has not yet finalized the specifications for the vehicle. Besides, Apple has not decided on the suppliers.
Apple Inc (NYSE: AAPL) has long been rumored to be developing Apple Car – an electric vehicle with a new battery design. Previously, there were reports about Apple planning to launch the car by 2021. Recently, Reuters reported that Apple is targeting 2024 for the Apple Car launch. However, Apple analyst Ming-Chi Kuo has provided other data. According to Kuo, Apple Car will arrive no earlier than 2025-2027.
Kuo stated:
“We predicted in a previous report that Apple will launch Apple Car in 2023–2025 […] However, our latest survey indicates that the current development schedule of Apple Car is not clear, and if development starts this year and everything goes well, it will be launched in 2025–2027 at the earliest. Due to changes in the EV/self-driving market and Apple’s high-quality standards, we would not be surprised if Apple Car’s launch schedule is postponed to 2028 or later.”
As the analyst has explained, Apple has not yet finalized the specifications for the vehicle. Besides, Apple has not decided on the suppliers. Further, Kuo said the production of the vehicle has not started but already affected the company’s stock. According to Kuo, the market is “overly bullish” about the car’s launch schedule. Therefore, for now, investors should avoid buying Apple Car-related stocks.
“The market has high expectations for Apple Car. Still, we remind investors that although Apple has a variety of competitive advantages, it is not always successful in new business. For example, Apple failed to enter the smart speaker market. The demand for HomePod and HomePod mini were lower than expected, and the development of new smart speaker models had been temporarily suspended. The competition in the EV/self-driving car market is fiercer than that for smart speakers, so we think it’s perilous to jump to the conclusion that Apple Car will succeed.”
What to Expect from Apple Car?
The specifications for the vehicle are not yet clear but some details about the car are already known. Firstly, the vehicle will have a unique “monocell” battery design. It “frees up space inside the battery pack by eliminating pouches and modules that hold battery materials”. As a result, a longer range per charge will be available.
Secondly, Apple will focus more not on tech features but on software. In particular, the car will have a reliable auto-pilot with “speaking” AI. Ming-Chi Kuo believes the vehicle will become Apple’s “next star product”. With the car, Apple will provide “better integration of hardware, software, and services” than potential competitors in the automotive market.