Is Apple Inc. (AAPL)’s Next Plan to Challenge GM and Ford? What it would mean for investors


It has been over 9 years since Steve Jobs announced the first Apple Inc. (NASDAQ:AAPL) iPhone at a Macworld convention. Since that time, a company that was still recovering from losing its battle with the PC, has grown to be one of the world’s largest companies, relying on sales of mobile devices, a reborn Mac computer, and everything in between. While Apple is known to be secretive of their future endeavors, much speculation is abound about a potential dive into the automobile industry. Some analysts think it’s a mistake, while others believe it would be a brilliant move. Whatever it is, it certainly will fun to watch.

While no confirmation has been made as to even if Apple Inc. (NASDAQ:AAPL) will one day manufacture automobiles, many signs are pointing in that direction and some reports have the company preparing for a release sometime between 2019 and 2020. The automobile industry is huge, so even if Apple is able to garner just a small share of the market, they could see their revenues jump by leaps and bounds. In 2015 Apple brought in revenue of $233.7 billion. During this time, General Motors brought in $152.4 billion. The U.S. Automobile industry as a whole brings in about $1.1 trillion a year and that is expected to double within the next 4 years.

When you think about reasons why Apple Inc. (NASDAQ:AAPL) has been so successful with their smartphones, you can probably summarize it with a few short points. 1) great marketing, 2) name recognition, 3) great products that don’t typically break down, 4) high quality parts that not only look good but feel good as well.

If Apple can magically continue this with an electric car of their own, fully compatible with their smartdevices, market the heck of it and convince buyers that their car will “make you cool” — after all a large percentage of iPhone owners simply buy an iPhone because they are “cooler to own” then Androids — then their first automobile will probably be a success. These are big “ifs” though, but if successful there is no telling where Apple stock will be in 5 years from now.

The stock is down 0.11% or $0.11 following the news, hitting $96.15 per share. Approximately 17.73 million shares traded hands. AAPL shares have declined 24.10% since July 15, 2015 and are currently downtrending. It has underperformed the S&P500 by 13.90%.