Apple Car could launch in 2023
Apple analyst Ming-Chi Kuo expects Apple (AAPL) to launch an autonomous car by 2023. Project Titan refers to Apple’s entry into the autonomous car segment. Kuo expects the Apple Car to drive future revenues and propel the firm closer to a $2.0 trillion valuation. In early August, Apple became the first US-based company to reach a market cap valuation of $1.0 trillion.
Kuo has identified the company’s Services business and the highly secretive Project Titan as key drivers over the long term. Kuo has predicted that the Apple Car might launch between 2023 and 2025. It will be intriguing to see whether Apple can disrupt the autonomous car segment much like it changed the smartphone market in 2007.
According to Kuo’s research note, “Apple’s leading technology advantages (e.g. AR) would redefine cars and differentiate Apple Car from peers’ products.”
Kuo added, “Apple’s service will grow significantly by entering the huge car finance market via Apple Car, and […] Apple can do a better integration of hardware, software, and service than current competitors in the consumer electronics sector and potential competitors in the auto sector.”
Apple doubles its self-driving fleet
Apple has doubled its self-driving test fleet from 27 in January to 55 at the start of June. Apple now has a larger test fleet than Alphabet’s (GOOGL)(GOOG) Waymo, whose fleet consists of 51 vehicles, as does Tesla’s (TSLA) fleet.
Last year, Apple received clearance to test driverless cars in California. There is still considerable industry speculation about Apple and the autonomous car market. Could it manufacture a branded in-house car, or would it rather license its autonomous driving technology to a traditional automaker? For now, we’ll need to wait and watch Apple’s developments in this market.