There are many theories behind Apple’s secret car, but there are some analysts saying this project is not feasible at all and it will never hit the showrooms.
Everyone in the industry is more or less confused about Apple’s plans to apparently develop a vehicle that would combine electric powertrain and autonomous driving technologies. And rightly so, as there is too much secrecy around the project. On the optimists’ side, there is a strong belief that the electronic giant is cooking something special for the automotive world. One of the most respected Apple financial analysts, Gene Munster, recently told to Apple Car Fans that the car was coming and the reason behind it was the company’s need to further grow. But can a car really bring such profit?
Richard Windsor, an analyst at Edison Investment Research, thinks that a vehicle could never be as profitable as Apple’s high-margins smart gadgets, even if the segment does not have enough room anymore to bring bigger earnings. “How can you make 40 percent gross margins on pressed steel, wheels, brake pads and seats when the others who are buying all these things in much greater volume can’t do it?” Windsor said in an interview to Bloomberg. “It’s just not feasible.”
And still, why does Apple try so hard to make it happen, presumably spending huge financial resources for the “Titan Project” and hiring engineers and auto specialists? Windsor said that while he was convinced the Cupertino-based company was actually building a smart car, it will never hit the showrooms. He believes that Apple is doing this in order to learn about the trends in the auto industry and how other infotainment techs can be integrated into cars. “They don’t have the DNA of a carmaker,” he said. “We think that Apple’s future in the automotive market is very uncertain as both avenues of earning a return through selling hardware look like dead ends.”