The Apple Car may bring $50 billion more revenue for the company, Gene Munster of Piper Jaffray predicts. With investors highly noted optimism for the Apple Car, even from people on Wall Street, Munster increased his estimates for Apple’s fiscal year 2015 to 23 percent.
Apple Car Is “The next Big Thing”
Munster said that if the Apple Car is able to snatch 10 percent, at the very least, from the more than $500 billion sales per year in the U.S. car industry, this new product is truly the next big thing from Apple.
“We believe the potential for a car gives investors something, along with the Watch and TV, to look at as the next big thing for Apple. We believe this hope should be positive for the multiple on shares of AAPL and help support the stock over the next six months,” Munster told AppleInsider.
Apple Car as a Valuable Asset
Analysts at GVA research have spoken in the same tune with Munster. David Garrity, principal at GVA research, said on Monday that the company’s breathtaking swept of the market through its iPhone makes Apple a valuable asset to the automotive industry. He said that the company’s $180 billion in cash will make it possible for Apple to ace the competition in electric car market.
“Apple potentially has a great deal of value to offer in this area,” Garrity said as quoted by CNBC.
Ray Wong, principal analyst and founder of Constellation Research, believes that the Apple Car is the next phase for Apple. The rumored electric car is the company’s “move towards building out the rest of its digital lifestyle,” Wong said as reported by CNBC. He added that Apple’s penchant in finding new markets for its operating system – as evidenced by their iPhones, home and healthcare – will transcend to the Apple Car.
Cyrus Daruwala, managing director at IDC Financial Insights, echoed that of Wong’s insights. “By exploring the car, Apple is showing they can enter the industrial market and move up the value chain from consumers to big enterprise,” Daruwala said.