London Daily

Focus on the big picture.
Monday, Jan 05, 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
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
×