Apple will earn its next trillion dollar market cap through its services business, an augmented reality headset, and an Apple Car, according to reputable Apple analyst Ming-Chi Kuo, who now works for TF International Securities and today sent out a new note for investors outlining products that he expects to see in Apple’s future.
According to Kuo, Apple will launch an Apple Car sometime between 2023 and 2025, with the car set to be positioned as “the next star product.” Kuo foresees the Apple Car revolutionizing the automobile market much as the iPhone revolutionized the smartphone market back in 2007.
We expect that Apple Car, which will likely be launched in 2023-2025, will be the next star product. The reasons for this are as follows: (1) Potentially huge replacement demands are emerging in the auto sector because it is being redefined by new technologies. The case is the same as the smartphone sector 10 years ago; (2) Apple’s leading technology advantages (e.g. AR) would redefine cars and differentiate Apple Car from peers’ products; (3) Apple’s service will grow significantly by entering the huge car finance market via Apple Car, and (4) Apple can do a better integration of hardware, software, and service than current competitors in the consumer electronics sector and potential competitors in the auto sector.
Kuo also believes that Apple is planning to introduce AR glasses in 2020, expanding on its existing augmented reality market. AR, says Kuo, is the “next-generation revolutionary UI,” with Apple planning to redefine the UIs of its existing products by offering an AR experience created by the augmented reality glasses that are rumored to be in the works.
Apple will also continue to build out its services offerings to drive further revenue growth, says Kuo, but he does not go into detail on what new services categories Apple might offer in the future.
Related Roundup: Apple Car
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