Apple is a big company with a market cap of $783,07 billion, and most of its success is coming from its flagship iPhone. CEO Tim Cook in May noted a «pause» in iPhone sales but Apple is expected to come out with a new and expensive iPhone in a few months.
It will be a super premium tenth-anniversary iPhone costing $1,000 or more, but that will not help the sales of their iPhone at the moment. In addition, the pause could also be delayed. Maybe into a new fiscal year.
What is an electric car actually? It is a smart phone with four wheels, because there aren`t much difference from an electric car and a smart phone. And who can enter the auto industry better than Apple?
Apple have everything they need to design a brand new electric car. They have more than enough much-needed software know-how and the company is already working with car companies on CarPlay. They have $150 billion of net cash and $50 billion of free cash flows annually.
Apple compete with Google and Microsoft and it will be very disruptive when they all enters the car industry with its brand new electric cars.
Whats funny to see is that these companies are not car companies but rather software companies. It speaks for itself. Apple is a strong brand with many fans worldwide, and Apple Car can take a large share in the auto market.
Tim Cook said in June this year that Apple has autonomous car ambitions. Apple is working to build self-driving car technology, referring to the endeavor as “the mother of all AI projects”.
But it seems like Google are leading. In December, Google launched Waymo, wich is “a new way forward in mobility.” So far, they have more than 2 million miles of public-roadway testing for its vehicles.
What will happen if Apple buy Tesla? They could quickly become a leader, but Elon Musk laughs off the idea of Apple buying Tesla. But earlier this year, Musk said “Never say never to Apple buying Tesla”.
Apple have a cash hoard of more than $250 billion, and that is giving them the opportunity to spend some of it for acquisitions or buybacks.
We know that Elon Musk earlier this year had a meeting with acquisitions chief at Apple and news regarding this case would be a bomb in the stock market.
Apple Inc is expected to report earnings on Tuesday August 01 after market close. Earnings forecast for the quarter is $1,57 versus $1,42 for the same quarter last year.
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