Shulou(Shulou.com)05/31 Report--

Recently, Citigroup Securities released a report saying it is optimistic about Apple's decision to enter the electric car business. The brand is expected to launch self-driving cars using contract manufacturers as soon as 2025. Eleven Asian manufacturers, including Hon Hai, will be potential beneficiaries of Apple Car's huge business opportunities.

Citigroup believes that there are two scenarios for Apple to develop electric cars. First, there is every reason to think it will produce electric cars through original equipment manufacturers such as Hon Hai. This is expected to push income growth to an average annual rate of 10% by 2025. In the second case, Apple will focus on strengthening the development of Apple's CarPlay ecosystem. It should contribute to an increase of 2% in revenue and 1% in net income per share.

According to the analysis report, Apple will achieve greater benefits by outsourcing production. Although cars and smartphones are made differently, Apple is good at outsourcing a large number of products. So it should soon reach its target of producing 1 million Apple Car vehicles a year.

Apple's internal goal is to launch its self-driving car within four years, which is faster than the five-to seven-year schedule planned by some engineers earlier this year. But the timing is uncertain, and achieving the 2025 goal depends on the company's ability to complete the autopilot system, an ambitious task in the plan.

Citigroup Securities also identified four conditions for Apple's supply chain. These include preferring production bases in the United States or Mexico over China; it requires Apple to have a supply chain of batteries, screen panels and semiconductors; an electric vehicle platform with economies of scale for mass production; and Apple can maintain its design capabilities. According to these conditions, a total of 11 companies in Asia meet the requirements.

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