The market was stunned a couple of weeks ago by a Reuters report that Apple
Cook's tenure is a success by many measures including revenue growth and margins. However, his primary focus has been on improving operations and improving positioning in its markets. There have been some new products such as the iWatch and Airpods. Additionally, the company has introduced new offerings like Apple TV, Apple Fitness, and even enterprise offerings.
Since Apple is so massive, none of these individually are enough to alter the company's trajectory, however, for most companies, they would be a much more notable achievement.
Apple Car Deal
An Apple car has been rumored for many years now. However, the most recent update seemed to involve the company scaling back its ambitions to focus on an OS for cars that it could license to car companies rather than its own cars. This seemed to fit the same pattern as the Apple TV which was initially believed to be an actual TV screen, but Apple TV eventually came out and was more of a set-top streaming box rather than an actual screen.
However, it's clear that Apple is willing to take a big swing on this project and is looking to begin production in 2024 with a self-driving electric car to follow in 2027. Similar to how it handles the design while outsourcing production for its phones, it's looking to partner with Hyundai
The initial phase is to produce 100,000 cars in 2024 at Kia Motors' facility in Georgia. Early indications are that Apple is planning to integrate its "breakthrough" battery technology in cars that it believes will differentiate its offering.
Stock Price Outlook
Both stocks were higher following the news. Hyundai's stock gained 75% in the next couple of trading sessions. Apple's stock has underperformed the broader market but is outperforming its tech peers. The company tested its previous all-time highs in mid-December, but the stock has trended sideways so far in 2021.
Apple is setting up nicely in many ways. It's almost a value stock given that it has a forward p/e of 29 which is cheaper than the S&P 500 Index