If Apple (AAPL) Car Were to Replicate BMW it Could Bring In Sales of $135B
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With reports of a 2019 "ship date" for the rumored Apple (NASDAQ: AAPL) Car, Piper Jaffray analyst Gene Munster believes the reality of a vehicle is increasing. That said, the analyst said it could be 2021-22 before the company is actually selling cars to consumers. Munster sees only a small revenue contribution at first but said longer-term the Apple car could really move the needle.
Putting the possible Apple Car in perspective for investors, Munster said for every 40,000 units sold at a $75K average selling price (ASP) it would add 1% to 2021 revenue. By comparison, Tesla produced 35,000 cars in 2014, Munster commented.
While admittedly difficult to make long-term predictions, and while Munster doesn't necessarily believe this will happen, he said if Apple were to recreate the success of BMW 20 years from now, which sold 1.8 million cars in 2014, revenue would be $135 billion. As a comparison, Apple is expected to post total revenue of around $230 billion this year.
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Shares of Apple closed at $109.58 yesterday.
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