Apple's Car Project Could Be A $50 Billion Opportunity In The U.S.

Apple AAPL +0.85% currently has a few hundred employees that are working on an electric vehicle project code-named “Titan ,” according to several reports. The prototypes of the automotive project appear to be in the form of minivans, which have been spotted throughout New York and California. It may be several years until Apple has a vehicle on the road, but there is speculation about the impact that the Cupertino giant could make on the automotive sector.

Gene Munster, a managing director and senior research analyst at Piper Jaffray, said that the U.S. car market may represent a $50 billion revenue opportunity for Apple. Munster cited data from Edmunds that revealed 16.4 million new vehicles were sold in America last year. And TrueCar reported that the average selling price of a vehicle in the U.S. was slightly over $31,000 in the month of August. This means that the U.S. car market is valued at over $500 billion. Apple’s vehicles could generate $50 billion in new revenue if it achieves “moderate success” — which he defined as about 10% of the U.S. car market, a 23% increase of Munster’s current estimates for Apple’s fiscal year 2015. Read More...