Investors Want to See the Apple Car

The make of iPhone, Apple (AAPL: Nasdaq) is entering the automobile market as it is creating an electric car.

Investors look at Apple’s stock and have one criticism, they have one product, the iPhone which is hugely successful and they have been asking Apple to give them a larger and more addressable market into the future. The global automobile sector could be the market the investors are craving. It will give Apple multiples on revenues and a huge profit potential.

In a news article in the Wall Street Journal (WSJ), Apple is working on an electric car that will be driverless. Apple has yet to officially confirm this report. There are investor concerns that the AAPL stock is way over inflated as it is trading above $127 a share. Last week, Apple set a new market cap record when it went above $700 billion. Not only is worth more than the Russian stock market it now has a higher than the GDP of Switzerland.

Apple’s Long Term Market Strategy

Making a care fits the tech giant’s long term strategy and will underpin price gains in its stock. If they build a digital and driverless car it moves Apple closer to its all-digital lifestyle they want for consumers. The car business hits at the very core of Apple which is finding new markets for its iOS system. They have done this feat for phones, computers, music, home and healthcare. Next up is the automobile industry.

Thanks to these rumors, emanating from credible sources like the WSJ Apple’s stock is in play today. We could see a nice move higher when The Street opens. Analysts are thinking of a 1.5 to two percent jump higher. At the time of this report, AAPL was 0.50 percent higher in aftermarket trading.

Apple Can be a Huge Asset to the Auto Industry

The tech giant has been hugely successful in consumer design. They also have been popular when it comes to interaction by consumers. Just look at the record iPhone sales. This will make Apple a valuable commodity in the auto industry. Cars are a mobile computer device. Thanks to all their electronic content and interface. This make Apple iOS the perfect segue into this market. The company is also sitting on $180 billion in cash. The biggest cash pile in global corporate companies. This will give them a huge advantage over the competition. Sony (SNE: NYSE) is also looking to enter this market.