Positive Surprises in Store for Apple Stock
Apple Inc. (NASDAQ:AAPL) is not new to rumors, and this is one reason that keeps Apple stock in the limelight. While the market is still warming up to Apple’s rumored acquisition of McLaren Automotive, as covered by Profit Confidential, yet another story has come to the surface. If Apple can make this work, AAPL stock will likely hit the roof.
Reports have come up that Apple is in talks with Lit Motors, a startup that makes electric self-balancing motorcycles. Apple has also hired many former Lit Motors engineers. (Source: “Apple Is Said To Be Talking To Vehicle Technology Companies,” The New York Times, September 21, 2016.)
Lit Motors makes the 100%-electric bike “C-1,” which it describes as a vehicle of the future that combines the freedom of a motorcycle with the comfort of a car. The “secret sauce” of the C-1 is the patented gyroscopic stability system. The gyros are controlled by the vehicle, allowing it to lean itself into and out of turns, and to stay upright when stopped, even in a collision! (Source: “We’ve been working hard,” Lit Motors, last accessed September 22, 2016.)
This makes a great case for Apple, which has been trying to get into the “mobility solutions for the future” game. Although McLaren brings with it a potent combination of engineering expertise and intellectual capital, the premium carmaker is not into electric car manufacturing or autonomous driving.
This is where Lit Motors comes in. Apple produces innovative products for the mass market. Vehicles like C-1 fit perfectly in that category, and the technical expertise that Lit Motors brings takes Apple closer to its dream of building an “Apple Car.”
At a time when Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Tesla Motors Inc (NASDAQ:TSLA), and Uber Technologies Inc. are investing heavily in technologies of the future, Apple just can’t afford to watch from the sidelines. Apple has always been an innovation company, and Apple fans want to be stunned again. Apple stock can no longer soar on “iPhone” sales.
In 2017, as the iconic iPhone completes a decade of its existence, Apple followers expect the company to announce another great product to catch their fancy, and an Apple Car or even an “Apple Bike” may just fill that gap. The company’s strategy of aligning itself with innovators in automotive technology is quite likely to pay off for Apple. Whichever way this goes, AAPL stock will see plenty of action.