Apple Inc. is ready to help promote massive changes in the auto industry and the company isn’t shy about its intentions. Apple CEO Tim Cook, while speaking at the Wall Street Journal’s WSJDLive conference at The Montage resort in Laguna Beach, Calif. Said that the auto industry is at the precipice of “massive change” that would alter everything the market has come to expect from cars. The confident words of Tim Cook about the part that the firm would play in the auto space are already causing increased bullish sentiments for the firm. Tech analysts from Jefferies & Co suggest an Apple car could cost half the price of a mid-range Tesla Model S.
Tim Cook’s words offer rare insight into the super-secret haze surrounding Apple’s “Project Titan”. Apple has not officially confirmed any of the rumors but the firm has dropped enough hints that confirm its interest in the auto space. The firm has been poaching engineers from other tech firms. It is already in talks with BMW about a possible deal. Tim Cook was quoted saying, “We’ll see what we do in the future… “I do think that the industry is at an inflection point for massive change.”
Apple is making a super car
There has been rumors and hints that Apple is making a car in its “Project Titan”. The problem though is that nobody knows in what capacity Apple would enter the automotive space. Some folks think that Apple will build an OS to power car infotainment systems, other think that the firm might build an EV, and others think that the firm would be at the forefront of autonomous driving tech.
Tim Cook hinted that his firm would be competing with Tesla in the EV space when he said that he sees “a lot of the major technologies in the car shift. Electrification, etc — they shift from today’s combustion engine-centric kind of focus.” He hinted that “Project Titan might rival Google’s self-driving cars when he said that “Autonomous driving becomes much more important… “Software becomes an increasingly important component of the car of the future”.
Analysts are positive about Apple
In other news, analysts are positing that the iCar might be cheaper than Tesla’s Model S. Tech analysts from Jefferies & Co think that Apple’s cars will retail for about $55,000 and that the firm would be able to hit a 200,000 annual sales target by 2020 if it unveils its car in 2019. If the analysts are right, Apple would have succeeded in delivering premium self-driving EVs at about half of the cost of a Model S with its autopilot features.
Analysts are already becoming more vocal in support of the bullish thesis on Apple. On Monday, Piper Jaffray analyst, Gene Munster noted that he can foresee favorable trends for Apple and that he thinks Apple investors will start seeing accruable gains by 2016. He says that expects Apple to provide guidance of $77B for the Dec. quarter ahead of Wall Street forecasts. Going forward, he has a $172 price target with an overweight rating on the shares of Apple within the next one year.