Tim Cook at the Apple Event
A closely watched Apple analyst warns that investors should be wary of a report that the iPhone maker plans to produce a self-driving car in 2024.
Last week’s Reuters report shot stocks of companies that build parts for autonomous cars, such as lidar sensors. However, the hype was based only on speculation that some of these companies might be supplying parts for the Apple car, TFI analyst Ming-Chi Kuo warned in a note this weekend.
Kuo has built a reputation for accurately disclosing Apple’s launch plans and is closely following Apple’s supply chain.
“We believe that the current so-called Apple Car Concept shares are just market speculation and not affect actual Apple auto suppliers,” said Kuo. “We also think it’s too early to talk about the final specs of the Apple car as technical specifications for electric vehicles and self-driving cars are still evolving.”
Kuo said the market for the Apple car is “too bullish” and he wouldn’t be surprised if the Apple car doesn’t hit the market until 2028 or later. He doesn’t think it could hit the market until 2025 at the earliest. Kuo also suggested that Apple might be too far behind on artificial intelligence to bring a competitive self-driving car to market.
“If Apple Car wants to be successful in the future, Big Data / AI is the most important success factor, not hardware,” he said. “One of our biggest concerns about Apple Research December 27, 2020 2 Apple Car is that when the Apple Car was launched, the current self-driving car brands have amassed at least five years of big data and are promoting deep learning / AI. How Apple Overcomes a Latecomer , this gap? “
Apple has kept its great vision for cars relatively quiet. But the company has been testing self-driving technology for a number of years, and CEO Tim Cook said he sees the technology as a way to improve Apple’s AI systems.
Other analysts were just as skeptical as Kuo.
“Apple is doing R&D in many areas and while we are not surprised that the media is again discussing Project Titan for cars, we are very skeptical that Apple will actually produce a car as the profitability of the automotive sector is much lower.” Citi analyst Jim Suva wrote in a note last week.