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Apple’s path to EV should be through partnerships with automakers
25.12.2021 [17:29],
Alexey Razin

Over the past five days, Apple shares rose in price by 2.5%, but this was enough for its capitalization growth to be greater than the capitalization of the entire General Motors corporation. The culprit was rumors about Apple’s intentions to present an electric car. But industry analysts believe it makes sense for an apple company to start entering the market through partnerships with other manufacturers.

Image source: Teslarati

Experts have already expressed the opinion that the car manufacturing business as such is characterized by high capital investments and low profit margins. If Apple has no problems with the first one, then the financial model of the industry may well scare it away. Some analysts agreed that Apple may be more interested in services to promote content, programs and services to a potential audience of robotic cars – freeing a person from the need to drive a vehicle, you can offer him a whole range of digital entertainment, which will be able to make good money.

Wedbush Securities analysts are convinced that Apple will announce a strategic partnership with one of the major EV makers next year. Tesla, Volkswagen and even the Chinese manufacturer NIO are mentioned as candidates for cooperation. According to the authors of the research note, the likelihood of such an option for Apple to enter the electric vehicle market is more than 70%, if we talk about the prospects for the next few years.

The “two-stage path” implies that after assessing its potential in the electric vehicle market, after 2025 Apple will already be able to think about releasing its own vehicles, albeit through cooperation with a contract manufacturer. In the second half of the decade, it will become clear what opportunities the personal vehicle market opens up for new players, and if it offers Apple sufficiently attractive financial prospects, then the company may decide to take a fateful step for itself. According to Wedbush representatives, the Chinese Internet giant Baidu is going in a similar way, which so far limits its presence in the automotive segment to cooperation with specialized manufacturers.