The tech company's step into the automotive industry is expected to bring in some challenges for the giant before the actual launch takes place in 2019.
Recent news suggests that the fact that Apple is working on an electric vehicle should not bother other giants in the EV industry as the software firm could be facing some serious problems and challenges before the launch that a lot of people might be overlooking. Even though the date that has been set for the release of the car is due in 2019, analysts are seen talking about how this does not seem to be an easy journey for the company to take. One thing that the software giant could be ignoring is the fact that because it has had a successful business in the tech industry, it does not guarantee a progressive business even in the automotive industry. Since this is also the first step Apple business is taking into the auto industry, it could very well be a shaken one. The Californian Company has reportedly been one of the most high sales scoring giants in the industry but analysts believe that this does determine downright success in the auto business, as company like Porsche are also seen struggling with their yearly revenue, where reports discuss how the iPhone maker seems to be earning more than the famous car company, which is something to keep in mind as to how much the tech company can actually earn through the car business. On the other hand, Apple software firm has also conveyed it to the press a couple of times that the company has a massive revenue generation that is sure to help it see through all the problems or losses that could be faced in the future. Analysts, who are looking at the current situation of the company from all angles, are not of the same opinion. Even though the car producing business demands for more man power and more investments, it is believed to not give back in the same way. Reports have shown that the margin on profit that the auto companies receive is much lower than what the tech companies, especially Apple, is earning in the current situation which is being taken as a point that could disappoint investors in the long run. The software giant currently enjoys a colossal operating profit at around 28 percent which is a figure to be reckoned with, while on the other hand, Porsche earns around 16 percent profit which almost half of the value. Analysts are also talking about how Apple tech company might be facing some challenges where the government rules and laws are concerned, as the giant has not faced strong regulations before, which every other auto maker has to face in the industry.
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