Morgan Stanley: Apple Car focus on ‘design and vehicle’

Morgan Stanley analyst Katy Huberty recently shared her thoughts on how tech giant Apple might be approaching development of the rumored Apple Car.

Apple has been working on projects related to car development since at least 2014. Rumors and reports have been inconsistent. At one point, reports indicated that Apple had decided to focus on vehicle software. But now it appears that Apple is focused not only on software but also on a car for consumers.

Adam Jonas, an analyst at the investment firm, spoke with Huberty about the Apple Car project in an interview published by Morgan Stanley,

“The car is essentially the next mobile device, and it’s a category that Apple has focused on for years,” Huberty said, adding that Apple focuses on markets where “computing is part of the everyday life of the human.” become central to life.”

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Apple does software and hardware

One of the most common questions is, “Why doesn’t Apple just focus on software and services?” Huberty said. After all, building hardware and software right out of the gate as Tesla has done is fraught with complexity. And for a new car company, it’s not always possible to fix it.

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“Apple takes the other side of it. Strategy is about doing fewer things, but doing them really well, and increasing your chances of success,” she said.

“Apple is successful when they are vertically integrated. They want a hand in the design of how the software communicates with the hardware, what are the right components and technologies to use,” Huberty said.

“Therefore, they can’t be successful in services until they’re successful in selling the device that sits on top of this new type of computer and services,” she said.

This means that it is likely that Apple will come out with an electric vehicle.

Huberty said, “I wouldn’t be surprised if Apple comes to market with an EV … they did it with the iPhone, where the first iPhone had no app store. It was about getting the hardware right first.” “

“I think the focus right now is, I’m sure, on the design and the vehicle itself, but with well thought-out plans about which services can emerge in the long term,” she said.

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As Tesla has shown, the development of an autonomous or “self-driving” vehicle is a major focus. For example, Tesla’s FSD (Full Self Driving) option on vehicles like the Model Y adds $10,000 to the cost of the car, but provides hands-free driving in many scenarios using Tesla’s AI software.

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“The right question is, ‘How big is the auto market and can Tesla help turn all of the auto market into EVs and eventually AVs. [autonomous vehicles]?'” said Huberty.

Apple CEO Tim Cook has said that Apple is focusing on autonomous systems for self-driving cars as part of the Cars project.

“We see it as the mother of all AI projects. It’s probably one of the most difficult AI projects,” Cook said in 2017.

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