Apple’s strategy for the car is likely to focus on vertical integration, as the company will have a hand in virtually every aspect of the “Apple Car,” Morgan Stanley analysts said.
In a note to investors seen by AppleInsider, Morgan Stanley analysts Adam Jonas and Katy Huberty discussed rumors about Apple’s automotive ambitions as to how the company could implement its strategy in this vehicle and the legacy of Apple CEO Tim Cook.
On the possibility that Apple may launch some kind of product for production vehicles or cars, Huberty notes that Apple has been focused on autonomous vehicle technology for years. Unlike other companies, Apple is devoting its time to new products to do well, the analyst added.
“The strategy is to do fewer things, but do them very well and increase the chances of success. So, as you said, years ago we started collecting data points that Apple would enter the car market and we thought it was real, ”Huberty said.
He also compared the current car market with other markets in which Apple has performed well, including computers.
“When you think about what will differentiate the car from the future, it’s certainly creative around new supply chains. It’s about the vertical integration of different components, hardware design, software and, ultimately, the services that can be offer in this car “. Huberty said. “It’s about consumer confidence and credibility, and certainly branding when it comes to a consumer product. And all of those categories are the ones in which Apple is a leader.”
Vertical integration will likely be a vital component of the “Apple Car”. Huberty says Apple’s strategy will likely make the company have details like vehicle design, software and hardware communications, and even the car’s internal components and technologies.
In the future, Apple is likely to focus on offering services to the “Apple Car” and creating a new user base. However, Huberty warns not to put “the cart before the horse.”
Yes, there will be an important element around the services that will be available in a car once the attention and attention of the driver is released, but first they have to hit the car. You and I have discussed it before. I wouldn’t be surprised if Apple hit the market with an EV, right? A car that looks similar to the cars currently on the market with a steering wheel. They did it with the iPhone, where on the first iPhone there was no app store. First it was about getting the hardware right.
At another point in the conversation, Jonas asked Huberty about how he would look at Steve Jobs at Apple today. In response, Huberty said he believed Tim Cook “has done a pretty phenomenal job of allowing Steve’s legacy to continue.”
The analyst says Cook has led Apple thinking about design and innovation, two things Jobs was famous for. However, Cook has also “included” other aspects such as executive, scale, and skills related to his time as head of Apple’s supply chain.
“So I think if Steve looked down, I would be very proud of the way Tim has built his own legacy by protecting the culture and differentiation around design and innovation that Steve started,” Huberty said.