Apple's New Hardware Products Prospects. An Autonomous Car

Dear Reader

It seems Apple Inc., the consumer electronics company, plans to mass produce an self-driving car by 2024.

Basically, if it succeeds, Apple could add 30 % to its current market capitalization of currently 2.22 trillion USD. As evidenced by Tesla's constantly rising stock price and astounding market capitalization and valuation relative to other major automobile manufacturers like Volkswagen, Toyota and Ford the gains to be expected from successful car manufacturing, especially autonomous driven vehicles, by Apple are substantial.

Apple's brand and artificial intelligence knowhow could provide for a breakthrough in the automobile production sector. Apple has been known to be able to sell high-premium products, so its prospective car is likely to be a luxurious sedan in the likes of Audi, BMW, Mercedes and Tesla, but Apple driven by its fan base could outsell the aforementioned brands by a large margin. Apple could actually break the mold that luxury sedans usually have around 2% market share in cars and reach  10% market share, around the share of iPhones' market share in the smartphone market.  Audi, BMW, Mercedes have profit margins of around 6-8%, while Apple's self-driving car could command a margin of around 14 % let us say, which could prove very valuable given how large in terms of billions in USD revenue per year the car market is.

All in all, if Apple succeeds and starts mass production of an autonomous Apple car in 2024 as rumoured, its market capitalization could even surpass 3 trillion USD in 7 to 10 years.

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Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

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Respectfully yours,

Petar Posledovich