London Daily

Focus on the big picture.
Thursday, Sep 03, 2026

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

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

Morgan Stanley analyst Katy Huberty shared her thoughts recently about how tech giant Apple might approach the 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 a car for consumers.

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

"The car is essentially the next mobile device, and this is a category that Apple has focused on for years," Huberty said, adding that Apple tends to focus on markets where "computing will become central to a human’s everyday life."


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, making the hardware and software right out of the gate as Tesla has done is fraught with complexity. And for a new car company, getting it right isn’t always possible.


"Apple takes the other side of that. The strategy is about doing fewer things, but doing them really well, and increasing the chances of success," she said.

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

"So, they can’t be successful in services until they’re successful in selling the device that this new type of computer and services sit on top of," she said.

That means it is probable that Apple will come out with an electric vehicle.

"I wouldn't be surprised if Apple comes to market with an EV…They did this with the iPhone, where in the first iPhone, there was no app store. It was first about getting the hardware right," Huberty said.

"I think the focus right now, I’m sure, is on design and the vehicle itself, but with well thought out plans around what services could emerge longer term," she said.

EVs vs AVs


As Tesla has shown, 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.

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

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

"We sorta see it as the mother of all AI projects. It's probably one of the most difficult AI projects," Cook said in 2017.

Newsletter

Related Articles

0:00
0:00
Close
Eleven British Seafarers Receive Merchant Navy Medal
Which? Creates Fake 10 Downing Street Rental Listing to Expose Booking.com Vetting Weaknesses
BP Appoints New Chairman in Effort to Stabilise Leadership
Aberdeen Sells Hydrogen Bus Fleet at Heavy Loss After Green Transport Experiment
UK Records Hottest Summer on Record as Climate Change Intensifies Extreme Heat
Scotland Pledges to End Temporary Accommodation for Children and Build 111,000 Affordable Homes
DNO Agrees $396 Million Deal to Acquire Capricorn Energy
Uber and Wayve Launch UK’s First Supervised Autonomous Ride-Hailing Service in London
Britain Expected to Avoid New US Tariffs Targeting European Union
Middle East Conflict Pushes UK Energy Costs Higher and Revives Inflation Concerns
UK Growth Forecast Cut to 1% Through 2027 as Youth Unemployment Is Projected to Rise
Andy Burnham Links Weak UK Growth to Brexit in First Full Commons Session as Prime Minister
Keir Starmer Resigns as MP, Triggering Holborn and St Pancras By-Election
UK Business Confidence Improves but Remains Deeply Negative
Aberdeen Hydrogen Bus Sale Recovers Just Six Pence for Every Pound Invested
Which? Exposes Booking.com Verification Failures With Fake 10 Downing Street Listing
British Business Bank Invests Up to £46 Million in Deep-Tech Startup Fund
Scottish Government Puts Violence Against Women at Center of Legislative Program
FCA Eases UK IPO Rules to Strengthen London’s Listing Market
UK Likely to Avoid Next US Tariff Measures as Washington Targets EU
Macron Visits UK for Bayeux Tapestry Exhibition and Border Security Talks
British Chambers of Commerce Cuts UK Growth Outlook to 1% for 2026 and 2027
Keir Starmer Resigns as MP for Holborn and St Pancras, Triggering By-Election
Prime Minister Andy Burnham Unveils Devolution and Cost-of-Living Agenda
UK Borrowing Costs Surge as 30-Year Gilt Yield Reaches 5.88%
Cleveland Police Receive £2 Million to Tackle Serious Crime in Middlesbrough
Number of Young People in England Without a Close Friend Reaches Record Level
Five Arrested After Newborn Baby Dies From Stab Wounds in Sheffield
Nigel Farage Faces Questions Over Reported Second Parliamentary Standards Investigation
UK Retirement Funding Requirement Rises by £64,000 Compared With 2021
UK House Prices Rise for First Time Since April, Nationwide Says
FCA Chief Faces Allegations of Intimidating Consumer Group Over £9 Billion Car Loan Inquiry
Scottish Government Presses Ahead With Cap on Essential Food Prices
Burnham Government Moves to Overhaul Early Prison Release Scheme
UK Records Hottest Summer on Record in 2026, Met Office Says
UK Government Announces Major Reset of Diplomatic Policy Towards Israel
UK Pushes Back After Trump Reopens Falkland Islands Sovereignty Dispute
Keir Starmer Resigns as MP, Triggering Holborn and St Pancras By-Election
Andy Burnham Blames Brexit for UK’s Decade of Weak Growth in First Commons Address
England Faces Renewed Scrutiny Over Sewage Discharges and Water Quality
Victoria Beckham Business Reports First Operating Profit Since Launch
BT Expects £2 Billion From Copper Sales During Full-Fibre Rollout
UK Train Drivers Secure 3.6% Pay Rise and Avert Strike Action
FCA Chief Faces Scrutiny Over Alleged Pressure on Consumer Group in Car Finance Case
Kemi Badenoch Names Andrew Griffith Shadow Chancellor in Conservative Reshuffle
UK House Prices Rise for First Time Since April
UK Shop-Price Inflation Accelerates to 1.5% in August
Met Office Data Point to Hottest UK Summer on Record
UK Announces Emergency Prison Release Measures and £110 Million Capacity Expansion
UK Launches Expanded Free School Meals and 1,400 Breakfast Clubs
×