Apple Inc. car is “closer to 10 years away than 5 years,” but still presents a potential opportunity for the iPhone firm, believes Piper Jaffray analyst Gene Munster. In its latest note, Munster focuses on the possibility of Apple coming up with a car in some capacity.
Apple car to be unique
Munster notes that if Apple comes up with a car, it would be an electric car, and will be “priced in the luxury.” Apple car will come with three unique features i.e. “Design, connectedness, and automation,” the analyst said. Munster says a car from Apple may be different from the cars of today, in terms of the “shape and size,” and would be integrated with Apple’s core products such as Siri, Maps, Music, HomeKit or even VR products.
Considering the car to be atleast five years away, Munster expect automation to play a vital role by the time Apple launches its car. Though tech firms are known to scrap projects they are working on, Munster is confident that an Apple car is “more poised for meaningful disruption” than any Apple TV product.
Good for Apple stock too
In recent times, there have been reports on Apple’s secretive Project Titan. Earlier this year, a report from the Wall Street Journal claimed that the tech firm has created a team of “several hundred employees” for working on this project. Then, three months after, an executive from the firm called the automobile the “ultimate mobile device.” Muster believe the chances of a car “becoming a reality” is around 50-60%.
It makes sense for Apple Inc. to come up with a car in a hope to stay competitive in a scenario, where major tech firms are foraying in this segment. Google is already testing its self-driving cars while Uber is also planning to enter the area.
Apple investors “increasingly view the opportunity as a long term growth driver,” says Munster, adding that in recent times auto industry seems to be dominating the tech industry. The analyst even says that CES, which stands for ‘Consumer Electronics Show’ may well be called ‘Car Electronics Show.’
Piper Jaffray is one of the most bullish research firm on Apple Inc. . It has an Overweight rating on the stock with a price target of $172. At around 11.30 am EDT, Apple shares were up 2.25% at $110.10. Year to date, the stock is down over 2% while in the last one-year, they are up almost 7%.