Analyst Ming-Chi Kuo has dashed any hope that the Apple Car will arrive sometime before 2025, warning that there are still many points to close.
A few days ago, information from the supply chain claimed that some auto component factories in Taiwan were rushing shipments to Apple for a possible launch of the Apple Car in September 2021.
The claim seemed unlikely for several reasons, ranging from a lack of a good definition of the vehicle’s characteristics to an apparently short time frame for the production of a product of this caliber.
In a note to investors, TF Securities analyst Ming-Chi Kuo cautions against giving credibility to this report , which has helped boost the stock market value of companies that are allegedly tied to Apple in everything surrounding the vehicle.
While a previous TF Securities report called for an Apple Car to launch between 2023 and 2025, the company’s latest survey indicates that “the current Apple Car development schedule is unclear .” If it started in 2020 and if “everything went well,” the potential launch could be between 2025 and 2027.
“Due to changes in the EV / autonomous vehicle market and Apple’s high quality standards, we would not be surprised if the Apple Car launch schedule is postponed to 2028 or later,” Kuo writes.
Specifications and vendors in reports and rumors are “just market speculation and do not involve actual Apple Car vendors, ” the note adds.
Another Morgan Stanley report states that Apple has an interest in “improving the driving experience with the vertical integration of hardware, software and services . ” The Apple Car is considered a long-term project in which Apple will incorporate five main technologies: the design of the processor, batteries, cameras, sensors and displays.
Goldman Sachs wrote about a possible launch in 2024, proposing that an Apple car would make sense as a hardware platform to support services, but the high costs associated with launching a car could mean that it will have limited impact for investors.
He also cites the typical low margins compared to Apple’s other businesses as a possible reason for Apple to explore alternative avenues, such as providing an innovative user experience but relying on another manufacturer to create the actual vehicle.