Tim Cook at the Apple event
Source: Apple
A closely watched Apple analyst is warning that investors should be cautious about a report that the iPhone maker is planning to produce an autonomous car in 2024.
Last week’s report from Reuters sent stocks of companies that make parts for autonomous cars, like LIDAR sensors, firing. But the exaggeration was purely speculative that some of these companies could supply parts for the Apple car, warned TFI analyst Ming-Chi Kuo in a note this weekend.
Kuo has built a reputation for accurately revealing Apple’s product launch plans and closely follows Apple’s supply chain.
“We believe that Apple’s current concept car stocks are just market speculation and don’t involve real Apple car suppliers,” said Kuo. “We also think that, as the technical specifications of the EV / autonomous car are still evolving, it is too early to talk about the final specifications of the Apple car.”
Kuo said the market is “very optimistic” for the Apple car and that he would not be surprised if the Apple car was not released before 2028 or after. He thinks he could hit the market before 2025. Kuo also suggested that Apple may be too far behind in artificial intelligence to launch an autonomous competitive car.
“If the Apple car wants to succeed in the future, the key to success is big data / AI, not hardware,” he said. “One of our biggest concerns about Apple Research December 27, 2020 2 Apple car is that when the Apple car is launched, the current autonomous car brands will have accumulated at least five years of big data and will be conducive to learning deep / AI How did Apple, a laggard, overcome this gap?
Apple kept its grand vision of automobiles relatively quiet. But the company has been testing self-driving technology for a few years, and CEO Tim Cook said he sees the technology as a way to strengthen Apple’s AI systems.
Other analysts have been as skeptical as Kuo.
“Apple conducts R&D in many areas, and while we are not surprised to hear the media discuss Project Titan for automobiles again, we are very skeptical that Apple will actually produce a car, as the automotive sector’s profitability is much lower,” Citi Jim analyst Suva wrote in a note last week.