Apple Inc. may already be positioned to evolve into a global
automaker in many ways that other Silicon Valley companies aren’t.
The Cupertino, California-based tech company has put a few hundred employees to work on a secretive project to
develop an electric vehicle, a person familiar with the matter has
said. While Apple often tests ideas that don’t get released, the work
underscores the company’s long-held desire to play a greater role in the
automotive space, which is ripe for more of a merging with users’
digital lives.
“It makes a ton of sense,” Gene Munster, an analyst with Piper
Jaffray Cos., said Saturday in an interview. “If you would’ve said 10
years ago, ‘Apple is going to be in the car business,’ I think people
would’ve said you’re crazy -- because it would’ve been crazy -- and
today it’s a much different company that’s able to tackle these massive
addressable markets.”
Apple, with a market capitalization that’s more than $700 billion,
needs to continue growing sales in iPhones, its largest revenue
generator, while also expanding into new markets, such as automobiles,
if it’s to reach a $1 trillion valuation, Munster said. He added that he
doesn’t think Apple would bring out a car in the next five years.
Nonetheless, Apple boasts some advantages versus other Silicon Valley companies with car ambitions. Tesla Motors Inc., which delivers less than 10,000 vehicles a quarter, surprised investors last month when Chief Executive Officer Elon Musk said the company wouldn't be profitable until 2020. Here are five reasons why Apple has the strength to be a potential automaker.
Nonetheless, Apple boasts some advantages versus other Silicon Valley companies with car ambitions. Tesla Motors Inc., which delivers less than 10,000 vehicles a quarter, surprised investors last month when Chief Executive Officer Elon Musk said the company wouldn't be profitable until 2020. Here are five reasons why Apple has the strength to be a potential automaker.
http://www.renewableenergyworld.com/rea/news/article/2015/02/is-apple-set-to-enter-the-electric-vehicle-market
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