Apple Car Highly Rated by Possible Buyers Before it Exists

A car from Apple , yet to be announced, designed or built, already has strong traction with potential buyers, according to a new survey. That is a hint that making one might not be a bad idea, but it is far too early to seriously consider what it might mean for the company, or for the auto industry.

Although the love consumers have for Apple (ticker: AAPL) products is something to consider, it doesn’t make the case that the company should make a piece of technology that costs 30 times what an iPhone does, and is arguably more dangerous in the hands of teenagers.

The consumer research firm Strategic Vision, which has investigated automotive brand strength for nearly three decades, recently asked car buyers for their feelings about a vehicle from Apple. It said that “even though Apple has yet to announce plans to produce an automobile, the brand already has some of the highest future brand consideration among recent new vehicle buyers.”

Apple ranked third, with 26% of respondents saying they would “definitely consider” an Apple car. Toyota Motor (TM) led the pack at 38%, while Honda Motor (HMC) was second at 32%. Ford Motor (F) and Tesla (TSLA) were fourth and fifth, at 21% and 20%, respectively.

“What should be concerning to others is that Apple generates a greater amount of love than any other automotive company,” said Strategic Vision President Alexander Edwards in a news release. “For example, over 50% of Tesla owners would ‘Definitely Consider’ a future Apple vehicle.”

Of course, it would be a bigger worry if there was a real car in the pipeline. It just isn’t time for investors to plug big market-share estimates for an Apple vehicle into their global sales models.

The quality, cost, safety, and features of any car ultimately determine its desirability, but no data is available on any of those points. Would Apple produce a small car, big car, pickup truck, or a luxury car? Or would it do something completely different, like building a self-driving robotaxi?

And would they build it themselves, or outsource the job to an existing auto maker? When would the car arrive? New cars can take years to develop.

Apple didn’t respond to a request for comment about potential car designs, production or timing. The Apple car is the auto industry’s white whale. It has been talked about for almost a decade, but never sighted.

The survey is interesting, but boils down to the idea that iPhone users like their phones, iPads, Air Pods and Macs so much that they would consider buying an Apple car if one existed. Anything is possible, including a leap from gadgets to autos, but anything is possible isn’t much help to investors.

Tesla and Apple shares aren’t really reacting to the car news. Tesla stock is up about 1% since the survey was released at midweek. Apple has risen almost 2%, while the S&P 500 and Dow Jones Industrial Average are both up about 1% over the same span.

September 03, 2022