Apple will 'go big or go home' with fully autonomous driving for Apple Car

iOS 13 Carplay
iOS 13 Carplay (Image credit: iMore)

What you need to know

  • JP Morgan analyst Samik Chatterjee says Apple will "go big or go home" with its electric car.
  • The analyst says that the car will be completely autonomous and be built by Apple itself.

As reported by AppleInsider, JP Morgan predicts that Apple's rumored electric car will be fully autonomous and that Apple will begin manufacturing the vehicle itself towards the end of the 2020s.

In an investor note seen by the outlet, lead analyst Samik Chatterjee says that Apple will "go big or go home" with its autonomous vehicle.

Chatterjee expects the Cupertino tech giant to adopt a "go big or go home" approach. He expects Apple to look to control the pace of innovation to differentiate the "Apple Car" and position it in the growth market of battery electric vehicles (BEV) that are fully autonomous.

Echoing similar thoughts from Morgan Stanley, Chatterjee says that Apple recognizes the auto industry as an enormous growth opportunity that could dwarf its smartphone business.

The primary reason why Apple is interested in the car industry, Chatterjee says, is that its total addressable market (TAM) is nearly $2.55 trillion — far higher than the smartphone market's $420 billion. Apple also has an opportunity on an installed base of 1 billion vehicles, and the autonomous "Apple Car" could also integrate deeply with and expand Services.

Apple Car

Apple Car (Image credit: The Verge)

The analyst points to recent reports that "indicate expansion and building momentum of intent to participate in the industry." He also mentions Apple's recent changes in leadership on the project and its continuous hirings of ex-Tesla employees and others from the industry.

Although speculation about an Apple electric vehicle aren't new, the analyst notes that recent press reports "indicate expansion and building momentum of intent to participate in the industry." Rumors of changes in leadership, similarly, are likely an indication of past delayed commercial launches in shifts in direction. Chatterjee also notes that a lack of feedback from other parties in the automotive and technology industries likely hints that Apple has been focused on developing its own intellectual property in the car space.

There have many conflicting reports surrounding Apple's rumored car project. Just recently, its been reported that instead of manufacturing the car itself, Apple will tap Hyundai Motors to assist in manufacturing as soon as 2024.

Joe Wituschek

Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.