Reports are that Apple Inc (NASDAQ:AAPL) is looking to get their technology into cars. Apple wants to own the car dashboard. Can this move work and what does it mean for AAPL?
Without most knowing it, there is already a plethora of tech in cars, such as auto braking, lane drifting and all types of advanced systems we don’t even think about. Down the line the big one coming in future years is the self driving car, the full integration of computers and cars coming together.
There is so much technology that is in cars today and that is expected down the line that the market for Apple (NASDAQ:AAPL) to get into car tech is just too tantalizing an opportunity for Apple to miss out on. At the moment Apple has their car play system, but the further functionality they could bring by owning the dash to safety systems, driving features and other analytics is there for AAPL to take hold of.
The car market is obviously huge and reliability and name is everything. Apple easily has this reputation for their products would always be welcomed by consumers, so we can easily see car companies happy to partner with Apple on this. This is just yet another market for AAPL to enter and grow their revenues. Analysts should take this into account when looking at Apple’s long term earnings possibilities as this is a major growth avenue for AAPL. We would expect if they can get to partner with a few of the larger car companies there is no doubt this could boost sales in the hundreds of millions of dollars for the company.
Apple Inc (NASDAQ:AAPL) ended trading yesterday at $128.72, up 0.69% on the previous day of trading. The stock is trading on a trailing twelve month P/E ratio of 17.35 and forward P/E ratio of 14.05.