The arrival of the Apple car could push Apple’s market capitalization to an almost unimaginable $3 trillion, analysts at Citigroup and Wedbush claim.
Since Apple is currently worth $2.05 trillion, that would mean a surge of approximately 50% on its present value. Apple is already the most valuable public company in the world.
Not all of this boost would come from an Apple Car. Citigroup analyst Jim Suva noted suggested that it could add up to 15% in sales revenue after 2024, when some predict the Apple Car will arrive. He notes that, according to his projects, the electric vehicle market will be larger than the combined smartphone, PC, tablet, and wearables market by 2025. That tallies with a previous report in which we noted that capturing just a small chunk of the EV market would mean big things for Apple.
The rest of the growth could come from Apple’s existing products, specifically the iPhone. Wedbush analyst Daniel Ives pointed to the iPhone 12’s success as evidence of continued growth — and noted that current declines in Apple’s stock price represents a “golden buying opportunity” for those who are interested.
Apple shares have recently fallen around 15%. Part of this relates to concerns over how, as Bloomberg phrases it, “rising bond yields hit the tech sector more broadly.”
The latest on Apple Car
It is still not clear what form the Apple Car will take. Current rumors suggest that Apple will go it alone in terms of the design of the car, while manufacturing will be handled by a contract manufacturer like Foxconn or Magna International. This is after talks with both Hyundai and Nissan apparently broke down over various issues.
Are you excited at the prospect of a potential Apple Car? Do you think it could drive Apple (no pun intended) to a $3 trillion valuation? Let us know in the comments below.
Source: Bloomberg
