Tianfeng International analyst Ming-Chi Kuo expects the Apple Car to be released in 2025 at the earliest and will be very expensive because of its high-end positioning.
Kuo pointed out in the report that based on experience, it takes about 18-24 months for a new iPhone to go from initial specification definition to mass production.
Compared to cell phone development, car development takes a longer time, has higher verification specifications, more complex supply chain management, and a very different sales and after-sales service system, Kuo said.
Apple, which lacks experience in building cars, has a very tight timeline if it wants to release the Apple Car in 2025, Kuo said in the report.
Foxconn Technology Group, a member of the Apple Car supply chain, generally lacks experience in delivering large quantities of electric vehicles, so it will take at least 2-4 years of continuous investment to see initial results, Kuo said.
The market is overly optimistic about Apple Car orders assigned to companies including Foxconn Technology Group, Kuo said.
Kuo also revealed that Apple Car will be positioned in the very high-end models, selling price and parts cost will be significantly higher than the general electric car.
During Apple's Q1 2021 earnings call with investors and analysts, CEO Tim Cook said Apple likes to work on products where there's a "requirement for hardware, software, and services to come together."
Cook specifically said that Apple looks for markets where it can intersect hardware, software, and services.
Cook went on to say that he believes there are "some really good opportunities" out there for Apple:
We feel that we have really good upside there and good upside in the services area, which we've been working on for some time.
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