Apple Car's Biggest Beneficiaries Are LG Electronics, LG Display, and LG Innotek

[Asia Economy Reporter Song Hwajeong] As the Apple Car is expected to be released in 2025, interest in related stocks is growing, and KB Securities has identified LG Electronics, LG Display, and LG Innotek as the biggest beneficiaries of the Apple Car.

According to KB Securities on the 22nd, Apple closed at $160.55 on the 19th (local time), up 1.7% from the previous day, setting a new all-time high. As a result, Apple's market capitalization reached $2.63 trillion (3,134 trillion KRW), surpassing Microsoft ($2.57 trillion) to take first place. Dongwon Kim, a researcher at KB Securities, explained, "This is because the possibility of launching a fully autonomous Apple Car in 2025 has increased."

According to Bloomberg, Apple has completed the development of the core processor for the autonomous driving system to be installed in the Apple Car, and coordination work with the autonomous driving software has also been completed. It is expected to release an electric vehicle capable of full autonomy within the next four years, in 2025. Accordingly, Apple is expected to soon begin driving tests on California roads.

The Apple Car will allow passengers to enjoy infotainment using a large OLED touch screen while facing each other in a lounge-like setting, and is expected to implement various iOS services through device integration with iPhone and iPad. Researcher Kim said, "The Apple Car is expected to evolve beyond the traditional concept of a means of transportation into an integrated platform for expanding the iOS ecosystem."

LG Group affiliates supplying parts for the iPhone are considered beneficiaries of the Apple Car. Researcher Kim stated, "Apple is expected to take the lead in both hardware and software development for the Apple Car, just like the iPhone, and when selecting Apple Car production and parts suppliers, it will simultaneously consider the limited development time and the geopolitical risks of the US-China conflict." He added, "Therefore, Apple is expected to actively utilize the iPhone parts supply chain already verified in the market and is presumed to prefer Korean companies over those in the Chinese market." He further added, "Apple is highly likely to purchase key Apple Car components from LG Group affiliates, and thus, LG Electronics, LG Display, and LG Innotek are presented as the biggest beneficiaries of the Apple Car."