Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

How Apple Inc. (AAPL) Can Add Value To The Auto Industry

With Apple Inc. (NASDAQ:AAPL) rumored to be developing its very own electric car, some may wonder what value a company primarily in the business of consumer electronics – albeit a very good one in its field – can add to the automotive industry which it appears to be entering.

According to David Garrity, GVA Research principal, in an interview with CNBC, Apple Inc. (NASDAQ:AAPL) can leverage its prowess in design and consumer experience and relations for its entry into making cars.

“I think certainly with respect to Apple being able to take what is clearly a dominant consumer franchise and given a user experience or user interface if you will that I think has been superior to anyone of a wide range of competitors, Apple clearly has some very significant points that they can leverage,” Garrity said.

Furthermore, he noted that Apple is rich and has a ton of cash on hand, more than a lot of other companies out there, that they can spend in ventures like this. The GVA Research principal said that Apple Inc. (NASDAQ:AAPL) has roughly $180 billion in cash.

However, Garrity also noted that if the technology juggernaut does pursue making its very own electric car, it presents a risk to investors.

Apple, is AAPL a goods stock to buy, cars, automotive, David Garrity,

Nonetheless, he said that when you think of it, cars can be extensions of our mobile world with these machines possibly being regarded as “the ultimate mobile device”. He also pointed out that among its peers in Silicon Valley, the iPhone maker has strengths in can draw from to compete in the automotive industry.

“To the extent that if you look across Silicon Valley and you look at competitors such as Google going out and basically working on coming out with driverless vehicles, certainly Apple, given their own strengths with respect to consumer design and interaction and consumer experience, they actually have a great deal of value to offer in this area,” Garrity said.

Apple Inc. (NASDAQ:AAPL) has always been criticized for its success, Garrity said, with the company being questioned how they are going to expand their market with other products. The GVA research principal said that the automotive industry is multiples bigger than what Apple currently.

The iPhone maker will also not need to set up manufacturing facilities as there’s a surplus in capacity the company can tap into in the market. Apple’s expertise in managing successful and efficient supply chains will come in handy if they build their very own car, Garrity said.

In terms of its first entry in the market if the iPhone maker does decide to make a car, it would be a connected performance car with driverless capabilities which its driver can still drive manually, Garrity ventured.

Carl Icahn’s Icahn Capital LP owned just over 52.76 million Apple Inc. (NASDAQ:AAPL) shares by the end of the third quarter of 2014.

I jsut made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said “I lost money by EXACTLY following your stock picks”. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!