Apple has reportedly terminated its decade-long electric car project, according to an insider. The information has not been confirmed officially yet.
Apple company logo inside an office building – illustrative photo. Image credit: Zhiyue via Unsplash, free license
This move marks the end of a venture initiated ten years ago. The decision concludes a plan that aimed to thrust Apple into a new industry and potentially replicate the success achieved with the iPhone.
The project faced variable progress over its lifespan, and its termination aligns with a broader trend of global automakers scaling back investments in electric vehicles due to a significant drop in demand.
As per Bloomberg News, several employees from the project will be reassigned to Apple’s artificial intelligence (AI) division, a move that aligns with Apple’s strategic priorities.
Ben Bajarin, CEO of consulting firm Creative Strategies, noted that if the information is accurate, Apple’s increased focus on GenAI could instill optimism among investors regarding the company’s AI capabilities and competitive position.
Apple has adopted a restrained approach towards AI, diverging from tech giants like Alphabet and Microsoft, which have taken the lead in integrating the breakthrough technology. This cautious stance has raised concerns that Apple might lag behind in incorporating AI into its product lineup. This sentiment is reflected in Apple’s share gain last year, which, at nearly 50%, was the smallest among the so-called Magnificent Seven stocks.
Ten years ago, Apple initiated Project Titan, its internal moniker for the ambitious car project, amid a surge of interest in self-driving vehicles across Silicon Valley. The company initially aimed to unveil its proposed car as early as 2024 or 2025.
However, progress was tumultuous even before the onset of the COVID-19 pandemic, which further disrupted the global automotive industry. In 2019, Apple underwent restructuring within the project, leading to the layoff of 190 workers and a software approach overhaul. Notably, the concept car’s design transitioned from a radical, steering-wheel-free autonomous vehicle to a more conventional car with advanced driver-assistance features.
Initially, the project generated anticipation, with hopes that Apple might replicate the success of the iPhone by introducing innovative design and user-friendly features to revolutionize the automotive market.
However, even iPhone sales, constituting the primary source of Apple’s revenue, experienced a growth slowdown as competitors launched handsets with comparable specifications and competitive prices.
Furthermore, sales of iPads and Mac computers witnessed a decline amid a broader slump in demand for high-end gadgets. These challenges underscored the difficulties Apple faced in diversifying its product portfolio beyond its established successes.
Written by Alius Noreika