What you need to know
- Apple's investment of $3.6 billion for Apple Car could create returns of at least $70 billion.
- JP Morgan analyst Samik Chatterjee also wavers on if the car will be fully autonomous at launch.
As reported by AppleInsider, a new investor note from JP Morgan analyst Samik Chatterjee dives into the topic of Apple and Kia partnering to build Apple's electric car. The analyst says that profits from Apple getting into the auto industry could "dwarf the initial investment" that Apple is potentially making into the market. The company is rumored to be investing $3.6 billion in Kia to support the production of Apple Car.
Chatterjee notes that a $3.6 billion investment in Kia would one of the largest investments the company has ever made, comparing the event to the company's acquisition of Beats and Intel's modem business.
While a $3.6 billion investment would be one of Apple's largest, the payoff could be exponential. Chatterjee believes that Apple could make up to $100 billion in profit on hardware alone - not accounting for potential services. While the potential is there, the analyst is unsure where things will land and if Apple will choose to go semi or fully autonomous at launch.
Chatterjee's note from today goes a little against what the analyst talked about in January. In that investor note, the analyst seemed confident that Apple would "go big or go home" with Apple Car and release a fully autonomous vehicle in the second half of 2020. Now, Chatterjee is seemingly keeping the window open for Apple to roll out a semi-autonomous vehicle if full self-driving is not ready in time for its initial launch.
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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.