Cars and not a new iPhone will be Apple’s next big product
Although Apple is the most valuable company in the world, it’s facing a serious problem. Apple relies heavily on the iPhone for its revenue. iPhone sales constitute around 60 per cent of the tech giant’s revenue stream which the Cupertino based company has been trying to fix for a while now.
Apple recently invested $1 billion in Chinese Didi Chuxing, which is an Uber rival, signaling an interest in shared mobility. There have been reports for over a year now of Apple working on a self-driving car as well a la Google. However, Apple’s plans to enter shared mobility through electric cars seem to be aimed at creating a recurring revenue stream at maturity.
Reports have reveled how Apple is in talks with charging station companies and hiring engineers with expertise in the area.
Reportedly, the iPhone maker has been looking for a partner to build self-driving, electric cars in Germany.
Analysts at Morgan Stanley have revealed after research that Apple has spent $5 billion on additional research and development from 2013 to 2015, which they believe has been primarily focused on shared mobility. They predict Apple will add another $400 billion to its already humungous stockpile of cash by 2030 through cars and not iPhones. However, these claims cannot be confirmed yet.
Interestingly, not only is Apple shelling out more now than it did when it launched its most successful product, the iPhone manufacturer is outspending major automobile manufacturers by 20 times on research and development and has left behind top 14 car makers combined in the process.
Morgan Stanley says the size of shared mobility market is $2.6 trillion which means the revenue potential for Apple is huge. The iPhone generates just over $150 billion in revenue per year.