Katy Huberty, an analyst at Morgan Stanley, made a prediction about Apple’s long-term project to develop “vertically integrated solutions,”media reported. Apple Insider seen in a study of Tesla that analyst Adam Jonas invited Huberty to compare Apple with the Palo Alto-based automaker.
While most research has focused on Tesla’s position in the technology and automotive industries, Huberty also offers some lace news about Apple’s role as an automotive technology developer.
First, Huberty points out that Morgan Stanley expects Apple to spend nearly $19 billion on research and development this year, compared with $80-100 billion for the auto industry as a whole. The flooding of research and development is one reason Why Apple and other technology companies are likely to disrupt the auto market.
Huberty added that Apple sees automotive technology as a “huge market that can contribute to better solutions”, similar to its view of health and financial technology. When it comes to the ultimate goal, the analyst predicts that Apple’s entry into automotive technology will be a vertically integrated solution.
Huberty, when asked if Apple and Tesla would work together, vetoed it, saying Apple’s ambitions seemed to imply that it would launch a product that would compete with Tesla.
Apple has long been rumored to be developing an Apple Car, and while it’s unclear in what form it will take, recent rumors and reports suggest it will be a physical car made by Apple.
In addition, Huberty also noted Apple’s shift from device sellers to more service-based companies. In addition, the analyst said, investors are beginning to realize the “subscription nature” of the iPhone’s repeated purchases and the placement rate for new services and products.