Apple predicted to announce 'Apple Car' partnership in the first half of 2021

Posted:
in General Discussion edited February 8
Investment bank Wedbush expects Apple to announce an electric vehicle partnership for the "Apple Car" in the first half of 2021 -- and VW or Hyundai are reportedly the top two choices.

Credit: Apple
Credit: Apple


In a note to investors seen by AppleInsider, analyst Daniel Ives says Apple entering the electric car market is now a matter of "when not if." He also expands on how an Apple-designed electric vehicle could disrupt the market if Apple partners with an existing automaker

"While the timing of an EV partnership with the likes of Hyundai, or another automaker, remains a key focus of the Street and EV industry over the coming months we assign a 85%+ chance that Apple will announce an EV partnership/collaboration over the next 3 to 6 months," Ives writes

He adds that now is the perfect time for Apple to enter the industry, since it's on the heels of an aggressive push by GM and Ford and ahead of a green wave driven by President Joe Biden.

The analyst notes that Tesla is still the heavyweight champion of the EV industry, but says that the entire market is entering an upward trend.

"Taking a step back, the EV industry is entering a golden age as we believe the broader consumer demand trends, innovative battery technology, regulatory EV incentives/tax credits around the globe, and sleeker/affordable models are creating a perfect storm of the demand for sector," Ives writes.

Wedbush continues to believe that Apple will announce a vehicle partnership within the next three to six months. Per conversations with investors, Wall Street appears to prefer this outcome to Apple building its own vehicle.

Although talks with Hyundai appear to have ended, Ives says that the automaker's E-GMP platform could represent a good fit for Apple with its distribution, modular, and robotic assembly design.

If talks with Hyundai do not resume, Ives says another candidate could be Volkswagen, since its Modular Electric Drive Matrix is a design framework that could allow for easy integration of new autonomous car models.

"In a nutshell, Apple with the right partner (Hyundai and VW Top 2 choices) would be a major force in the EV industry and could disrupt market share from the likes of Tesla, GM, Ford if the company is able to get the Apple Car on the road by 2024," Ives concludes.

The analyst notes that if Apple were to land just 5% to 10% of the potential $5 trillion industry, the "Apple Car" could represent another growth pillar for the company.

Ives maintains his 12-month AAPL price target to $175. The valuation is based on a sum-of-the-parts assessment of Wedbush's 2022 estimates, including a 16x multiple on Apple's Services at $1.2 trillion and a 7x multiple on Apple's hardware business at $1.9 trillion.

Comments

  • Reply 1 of 17
    dk49dk49 Posts: 135member
    If Apple announces a partnership with another manufacturer in 3-6 months, it will be very unusual, unless they plan to deliver the vehicles in another six months or so; and that's unlikely to happen. Because Apple generally announces products when they are close to be available in the market. Only few products like the original iPhone have a very long time to market after announcement (but even that was 6 months).

    If Apple plans to bring the car to market in 2024, I don't think they will announce the partnership to the public anytime soon. 
  • Reply 2 of 17
    Clearly this analyst hasn't being paying attention to the AI comments thread. This Hyundai news has doomed Apple for all time in this market (according to our local armchair pundits).
    equality72521beowulfschmidtlkrupprundhvid
  • Reply 3 of 17
    I like the VW possibility. I got down to between a Kia Sportage and a VW Tiguan when choosing my last car. Went with the VW, seemed a more solid build and smoother, quieter ride. No regrets. Would be pleased to see them partnering with Apple. 
  • Reply 4 of 17
    I like the VW possibility. I got down to between a Kia Sportage and a VW Tiguan when choosing my last car. Went with the VW, seemed a more solid build and smoother, quieter ride. No regrets. Would be pleased to see them partnering with Apple. 
    The Mexican made Beetle was a piece of junk. 
    mobird
  • Reply 5 of 17
    eightzeroeightzero Posts: 2,633member
    I'll take the over.
  • Reply 6 of 17
    Here are my predictions:

    1.  Toyota
    2.  Honda
    3.  General Motors
    4.  Volvo
    5.  Isuzu

  • Reply 7 of 17
    crowleycrowley Posts: 8,755member
    Here are my predictions:

    1.  Toyota
    2.  Honda
    3.  General Motors
    4.  Volvo
    5.  Isuzu
    Volvo would be an interesting match up.
  • Reply 8 of 17
    dk49 said:
    If Apple announces a partnership with another manufacturer in 3-6 months, it will be very unusual, unless they plan to deliver the vehicles in another six months or so; and that's unlikely to happen. Because Apple generally announces products when they are close to be available in the market. Only few products like the original iPhone have a very long time to market after announcement (but even that was 6 months).

    If Apple plans to bring the car to market in 2024, I don't think they will announce the partnership to the public anytime soon. 
    1. Apple had been telling people in early 2017 that they were working on a new Mac Pro. It didn't become available until late 2019.
    2. Apple has surprised us and has done other unusual things in the past.

    So there is precedent.

    Also, cars are big things that are more difficult to conceal (the auto magazines regularly publish "spy" photos of upcoming cars), so it might make sense for Apple to get in front of things and announce key partnership(s) years in advance of an actual product introduction.
    edited February 8 patchythepirate
  • Reply 9 of 17
    crowley said:
    Here are my predictions:

    1.  Toyota
    2.  Honda
    3.  General Motors
    4.  Volvo
    5.  Isuzu
    Volvo would be an interesting match up.
    ————————
    Volvo is Chinese-owned and already making electric cars under the Polestar line. Seems unlikely Apple would partner with a supplier building cars in China.

    I’m assuming Isuzu was placed on the #5 spot as a joke.

    randominternetperson
  • Reply 10 of 17
    I like the VW possibility. I got down to between a Kia Sportage and a VW Tiguan when choosing my last car. Went with the VW, seemed a more solid build and smoother, quieter ride. No regrets. Would be pleased to see them partnering with Apple. 
    The Mexican made Beetle was a piece of junk. 
    I read that reliability of New Beetles was not great, but I think for the most part, they were not junk.

    I had a 2000 N.B. 1.8T for 12 years, ended up putting 125K miles on it. It was still in very good shape when I sold it, but I took care of it while I had it.

    I thought it was a testament to VW's German design/engineering that a car could be built in Mexico and still have very good initial fit and finish. (Headliner and soft touch plastics were a bit worse for wear after 12 years, but many cars of that era were no better).

    I think VW's MEB platform would be a fine choice to build on.
    edited February 8 equality72521
  • Reply 11 of 17
    Sure would be nice to see Apple stick with an American car company. An all-American car would have so much more appeal than funneling all that money to somewhere else in the world.
  • Reply 12 of 17
    crowley said:
    Here are my predictions:

    1.  Toyota
    2.  Honda
    3.  General Motors
    4.  Volvo
    5.  Isuzu
    Volvo would be an interesting match up.
    ————————
    Volvo is Chinese-owned and already making electric cars under the Polestar line. Seems unlikely Apple would partner with a supplier building cars in China.

    I’m assuming Isuzu was placed on the #5 spot as a joke.

    No, not at all.  These 5 companies have one thing in common, they all make commercial vehicles that could fit Apples autonomous ambitions at different price points.
    If Apple can deliver a safe, secure and easy to use autonomous system for food and grocery delivery for example, they will need vehicles at different price points to address the huge global market for this.  

    Imagine using an iPhone App to order and securely receive delivery of hot pizza and wings.  You get an alert or a call when the truck is outside, then your iPhone and secure ID can select and open the shelf where your food order is kept, as a camera films your receipt of the food.  Brilliant!

    Apple would likely be it's first  own BIG client to transport its emploees and test level 5 autonomy,  followed by delivery companies like:

    1. Little Ceasar,
    2. Dominoes,
    3. Pizza Hut, 
    4. Red Lobster,
    5. TGI Fridays,
    6. Prêt-à-Manger,
    7. Olive Garden,
    8. Panera Bread,
    9. AppleBees,
    10. Hooters

    ... and many more globally.

    edited February 8
  • Reply 13 of 17
    For something as big as a car, I don't think Apple's usual desire for secrecy can be maintained.
  • Reply 14 of 17
    mjtomlinmjtomlin Posts: 2,446member
    I still tend to think Apple isn't interested in entering the personal car space. I'd be willing to bet that Apple is more interested in creating their own EV "transports" for a new automated ride sharing service.

    Furthermore, I don't think Apple will go with traditional manufacturing by building a huge auto-plant. To be more "green" factories will be local to the service area and much smaller in scale.
    edited February 8
  • Reply 15 of 17
    glnfglnf Posts: 32member
    The way I understand the car industry, I don’t think Apple is ever going to produce their own car. I find it much more likely that Apple is going to develop and deliver a self driving technical platform for other carmakers to integrate into there products resulting in „Apple enhanced self driving cars“ or some sort of „Carmaker x Apple“ collaboration. I would love to see Apple designing a car from scratch, I think there is a massive need to rethink private transport and to truly disrupt our ~100 year old car culture with all its flaws and the high environmental and social price it costs. But I don‘t think any company, including Apple can do that at the moment. It would be on the scale of singlehandedly inventing and introducing the internet again. 
  • Reply 16 of 17
    blastdoorblastdoor Posts: 2,439member
    Here are my predictions:

    1.  Toyota
    2.  Honda
    3.  General Motors
    4.  Volvo
    5.  Isuzu

    Don’t forget Roomba! Already all electric, fully autonomous, many satisfied feline passengers:

    https://www.google.com/search?q=roomba+cat

    MacPro
  • Reply 17 of 17
    jfanningjfanning Posts: 3,398member
    Sure would be nice to see Apple stick with an American car company. An all-American car would have so much more appeal than funneling all that money to somewhere else in the world.
    What about the other 96% of the worlds population that are happy for all that money to funnel into those other countries?
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