Luis Smith Tech 03.14.2021 22:Mar PM EDT

Apple Car Is Happening; Tech Giant Rumored to Be in Talks With Automakers!

In the past years, Apple has been rumored to compete with Tesla with a self-driving electric car; however, the company has hit a few bumps on the road as there have been reports that it has not found a car manufacturer to seal the deal.

Nonetheless, if recent reports are true, everything is set to change since the tech giant is said to be considering new plans to get the electric car plan functional.

Apple Car Marketing the Same With iPhone

As Bloomber reported (via Yahoo News), Apple is considering taking the same route with its iPhone line-up for their electric car manufacturing. It means the company will find a contract manufacturer to look for its pieces and assemble them.

If the tech giant decides to take the iPhone marketing strategy for their Apple Car, it will leave big car brand manufacturers out of the dust.

Also, if Apple wants to have a similar tactic to its iPhone manufacturing process, it will avoid building its own factories and will instead source out its own materials while avoiding relying on a potential competitor. However, that will unlikely happen as Apple is a tech company.

Meanwhile, there has been speculations going around that Apple has been talking with car companies such as Nissan and Kia to help them assemble the car parts it needs and make the plan into fruition. But, as CarBuzz noted, Apple has been unsuccessful in securing the deal with the auto companies.

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The reason is that no other car company wants to compete with the Tesla electric car, especially with its ultimate goal to challenge every fossil-fuel car's norms in the market. According to BestGamingPr, car companies are also not enthusiastic about collaborating with Apple, as automakers do not want to disrupt the car marketing flow. The report cited a supervisor who works at Apple and Tesla who mentioned that it would be akin to asking Samsung to replicate the iPhone.

However, there are reports that Apple is still not giving up on their hope. It is said to be considering finding a contract manufacturer for assembly and parts, with Magna International and Foxconn being the top contenders.

Foxconn could be a good choice to collaborate with as both companies are already familiar with each other and are also recently making Apple-designed hardware. It is accustomed to Apple engineers instructing it what to do, but do not rule out Magna, the Canadian auto part supplier who has already agreed to build the Fisker Ocean.

Apple Car Could Boost Company Shares

According to Mint, the development of the Apple Car could significantly raise the company's market capitalization by $3 trillion, as Citigroup and Wedbush see potential with the Cupertino-based company to hit a milestone.

The possible release of an Apple Car could increase its sales by 10 percent to 15 percent after 2024. Citigroup Inc. Analyst Jim Suva stated that by 2025, he predicts that worldwide electric vehicles market to outgrow the combined market for smartphones, PCs, tablets, and, smartwatches.

Meanwhile, Apple's shares have declined to 1.8 percent in early trading on Friday as worries over rising bond yields hit the tech sector more broadly.