Precisely this. Actually, you don't need to take our word for it. Several manufacturers small and large have tried the "tiny electric car" concept in Europe, a continent much more in love with small cars than the US, starting over a decade ago, and none have actually made it a success. E.g. the Reva (G-Wiz in the UK) was in sale from 2001 to 2013 with a total of 4 600 cars sold worldwide.
Compare that e.g. to the sales volumes of the Renault Zoe (60 000 cars sold since 2012) or the Nissan Leaf (250 000 cars sold since 2011).
Pair automation with a small, likely stylish car and demand from city-dwellers would be enough if Apple released something compelling.
[1] Google "apple smartphone profit market share"
Let's go backwards with this one: What are most road trips for? Commuting. Would Apple want to make a vehicle for all uses and conditions? Doubtful. Would Apple want to make a truck? Highly doubtful.
They only need to make a vehicle that covers a considerable number of (but not all) use cases. If it can get people to work, to a store, to a friends house, to a restaurant or bar then the number of people who would want one is considerable. It would probably be better suited to those living in cities, but that's still a lot of people who notably require something that doesn't take up much space as parking is at a premium. Better yet, the vehicle could park itself, return home when not needed, pick up the occupant on demand or even car-share the way Elon Musk predicts Tesla owners might lease their vehicles.
I have a car that gets 40mpg, and a truck that gets 18mpg. After you account for the extra insurance, license, taxes, and maintenance on my car, I'd be money ahead getting rid of the car and just driving my truck for everything even though times when I need a truck and a car will not do account for maybe 2% of my driving. Note that my car and truck a both paid for, if I'm making payments on both the math is even more lopsided toward not having a car.
People keep pointing out that I can rent a truck when I need on. However this is something is is true in theory, but not practice. It is actually hard to find someplace that will rent you a truck that allows you to use it. Want to take your rental truck off road - not allowed. Want to tow a trailer - most don't allow that. Want to put a sheet of plywood in the back - most don't allow that soft of damage. (though in this case the store probably has the best price and will allow it)