On Monday, foreign media reported that apple is likely to start producing electric cars in 2024, and the new cars will use Apple’s own battery technology. The report rekindled interest in Apple’s auto business. In 2015, the media reported for the first time that Apple intended to enter the auto industry, but the company never responded positively to the news. < / P > < p > although some analysts believe that the auto market will open up a new and large-scale market for apple, some analysts believe that if Apple starts to produce cars, Apple will encounter the common problems faced by the auto industry: high investment and low profit. < / P > < p > Apple’s current core business is selling high-end computers, mobile phones and digital accessories. Automobile is a business with low profit margin, which is different from Apple’s traditional advantage field. In order to successfully realize automobile production, enterprises need to invest a lot of money. “We’re not really surprised by whether Apple’s R & D projects are in the automotive industry,” Jim sutanp wrote < / P > < p > evercore analyst Amit daryanani also questioned Apple’s car making plan, saying that Apple would not enter this capital intensive industry with low profit margins. But he also said that if Apple succeeds in making breakthroughs in battery or autonomous driving technology, the company’s project could become more valuable. < / P > < p > some other analysts are very optimistic about Apple’s plans to enter the automotive market. In the past few years, many investors have called on apple to launch a new and important product as sales growth of its core business iPhone has stalled. Some analysts point out that the auto industry has a huge market and people spend a lot of time in the car every day. < / P > < p > Morgan Stanley analysts said that if companies like apple want to enter the automotive industry, they are not only to make money by selling cars and parts, but more importantly, they want to turn the passengers in the vehicle into the audience and use the time people spend in the vehicle to cash in. The team led by Adam Jonas and Katy Huberty estimates that people spend more than 600 billion hours a year in vehicles. < / P > < p > the soaring share price of Tesla this year has also made many analysts see the power of the auto market. After entering 2020, Tesla’s share price has increased by more than 600%. < / P > < p > Baird analyst William power said in a report released on Tuesday that the auto market is a market worth trillions of dollars and a “huge long-term global opportunity”. The Agency predicted that Tesla’s revenue is expected to grow by 40% this year to reach $42.2 billion. He believes that if Apple enters the industry, it is likely to usher in similar growth. Apple’s revenue in fiscal year 2020 is 274.8 billion US dollars, with a gross profit margin of about 1%. < / P > < p > some analysts pointed out that apple is still one of the few companies with the resources needed to enter the auto market. The company has a large cash reserve and the ability to recruit top talents in the industry. Analysts said Apple could also benefit from the transformation that the automotive industry is undergoing. In the current automotive industry, computing devices and software are becoming more and more important, which allows apple to highlight its advantages in computing hardware and software design. < p > < p > dayanani wrote: “the car is changing rapidly. It is becoming a” computer on the wheel “. If Apple cooperates with a company like magna, its background in software, chip and electronics is likely to play a major role.” Magna is a manufacturer of auto parts. < / P > < p > however, the biggest problem facing analysts now is how Apple can cash in through its car building plan. Their first choice is to sell Apple branded cars. Of course, the company can monetize it in other ways, such as launching travel services, or developing autonomous driving software as reported, and then authorizing it to third-party car manufacturers. < / P > < p > Morgan Stanley analysts believe that apple can sell some type of travel subscription service instead of directly selling cars, which can avoid direct competition with traditional car manufacturers. Morgan Stanley analysts said they don’t think Apple will directly enter the auto industry like other auto companies. They think Apple’s goal is to use the company’s advantages in design and software to improve the car driving experience and monetize it through subscription and service product matrix. < / P > < p > on Monday, gene Munster, a longtime Apple analyst and founder of Loup ventures, said there were two possible paths for Apple’s auto business. Making apple branded cars or developing authorized software for other car companies, but he also pointed out that if the second way is adopted, Apple may have to hand over control of the appearance and experience of the car to other companies. As we all know, apple is a company that attaches importance to control, which is not in line with the tone of the company. < / P > < p > he believes that Apple has not yet made up its mind which way to go. He believes that Apple’s production of its own cars is more in line with the company’s past style. “This is what Apple has always done: find a big market where other manufacturers have made progress, enter it after this year, and start a revolution in it,” he wrote Global Tech