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In the latest episode of the Apollo Effect podcast series, Morgan Stanley analyst Katy Huberty discussed the potential for a so-called "Apple Car" to disrupt the auto industry through vertical integration of hardware, software, and services. Huberty also praised Apple CEO Tim Cook, noting that the late Steve Jobs would have been proud.

tim-cook-apple-car.jpeg
A fan-made image of Tim Cook announcing an Apple Car via YouTube/qfulm

Apple Car's Vertical Integration

While some reports over the years have indicated that Apple's automotive ambitions might be limited to software and services, Huberty said Apple is most successful when there is vertical integration, as evidenced by the iPhone. Huberty said Apple would want a hand in the design of the vehicle, in how the software communicates with the hardware, and in choosing the right components and technologies to use.

"When you think about what will differentiate the car of the future, it's certainly being creative around new supply chains," said Huberty. "It's about vertical integration of different components, hardware design, software, and ultimately, the services that can be delivered in that automobile. It's about consumer trust and credibility, and certainly brand when it comes to a consumer product. And all of those categories are ones where Apple is a leader."

Huberty said once Apple manages to "get the car right," the company can then introduce services on top. While she did not provide any examples, one could imagine an "Apple Car" having everything from full Apple Music integration like in the Porsche Taycan to built-in displays for rear passengers to watch Apple TV+ shows or play Apple Arcade games.

In a December 2020 research note, Apple analyst Ming-Chi Kuo said an "Apple Car" is unlikely to hit the market until 2025–2027 at the earliest.

Tim Cook's Legacy

Last week marked the 10th anniversary of Cook being named Apple's CEO after Steve Jobs stepped down from the post due to declining health. Huberty reflected on Cook's era in the podcast interview, noting that Jobs would be proud.

"I really think that Tim Cook has done a pretty phenomenal job allowing for Steve's legacy to carry on, protecting that legacy while building his own very separate legacy," said Huberty. "Steve was very much about design and innovation and getting in the weeds in those two areas. Tim has allowed the culture of the company to continue on that front, but at the same time, he's layered in some of the softer aspects that are harder to measure," she added, noting that Cook has successfully scaled operations while placing a greater focus on areas like employee benefits, charitable giving, and environmental responsibility.

"I think if Steve was looking down, he would be very proud of the way that Tim has built his own legacy while protecting the culture and the differentiation around design and innovation that Steve started," she concluded.

Article Link: Analyst Discusses Apple Car's Key to Success, Says Steve Jobs Would Be Proud of Tim Cook's Legacy
 
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Joe Rossignol

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May 12, 2012
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Can you link to the podcast? Can't find it searching for "Apollo Effect."
Unfortunately the podcast seems to be behind a Morgan Stanley login page for their investor clients. I wasn't able to find a public link with a basic Google search, or else I would have linked to it in the MacRumors story.
 
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now i see it

macrumors 604
Jan 2, 2002
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Already hyping the iCar
(BTW, there never will be vertical integration with that vehicle - too many suppliers for too many parts)
 
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b-dogg

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Jul 10, 2009
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Could this article be more vague? You can buy an apple+ sub with your iPhone/iPad already in any bus, car or aeroplane already. Why build a car with the hundreds of billions cap ex?
 
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rme

macrumors regular
Jul 19, 2008
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Steve would have smashed Tims head into the lavatory like “The Punisher”. POW wall right -> POW lavatory left.
s02e01 / bathroom fight
"You know Tim... you and I have memories longer than the road ahead of us."
Longer than your road anyway."
 
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ForkHandles

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Jun 8, 2012
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I love this Messianic idea that jobs, a man sick with pancreatic cancer, was running Apple until his very last breath, then and only then Cook, the pretender, took over the reigns!!
I suspect Cook was doing most of the heavy lifting for years before Jobs passed away.
Cook is Apple.
 
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sw1tcher

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Jan 6, 2004
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Morgan Stanley analyst Katy Huberty discussed the potential for a so-called "Apple Car" to disrupt the auto industry through vertical integration of hardware, software, and services.

While some reports over the years have indicated that Apple's automotive ambitions might be limited to software and services, Huberty said Apple is most successful when there is vertical integration, as evidenced by the iPhone. Huberty said Apple would want a hand in the design of the vehicle, in how the software communicates with the hardware, and in choosing the right components and technologies to use.
If an Apple Car is anything like their other products, Apple disrupting the auto industry wouldn't be a good thing.

We'd get a car:

- with special proprietary pentalobe screws and bolts
- with non-user friendly replaceable parts and where the parts could only be purchased through Apple. Third party and CAPA certified parts? Pfft! Yeah, right
- that can only be serviced at and by Apple or by an authorized Apple repair/service center. This would even include something as simple as replacing a tire (pentalobe wheel locks) or refilling a tire with air because you'd need a proprietary adapter for the valve stem and a special Apple device to reset the TPMS
 
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citysnaps

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Oct 10, 2011
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I love this Messianic idea that jobs, a man sick with pancreatic cancer, was running Apple until his very last breath, then and only then Cook, the pretender, took over the reigns!!
I suspect Cook was doing most of the heavy lifting for years before Jobs passed away.
Cook is Apple.

Cook was running Apple before Jobs passed.
 
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CordovaLark

macrumors regular
Mar 12, 2018
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I love this Messianic idea that jobs, a man sick with pancreatic cancer, was running Apple until his very last breath, then and only then Cook, the pretender, took over the reigns!!
I suspect Cook was doing most of the heavy lifting for years before Jobs passed away.
Cook is Apple.
Not to mention Jobs would have survived had he followed the advice of the Doctors, but he thought the holistic approach was better.
 
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sw1tcher

macrumors 68020
Jan 6, 2004
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How does Huberty know what Jobs would or wouldn't be proud of? Were they friends or something?
She's an analyst - These financial seers divine special insights from exclusive industry sources and supply chain leaks that no mere mortal amongst us could decode... without a laptop, google and an internet connection.
Okay. So how would these exclusive industry sources and supply chain leakers know whether Steve Jobs would or wouldn't be proud of Tim Cook? Did they contact Steve Jobs and ask him?
 
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jamcgahey

macrumors regular
Sep 24, 2020
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Maine
Question is...can my outback last long enough until this comes out. Also, is this going to be way overpriced?
 
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