Several news outlets have reported that Apple has halted Apple has canceled its electric car development after ten years of work. This decision ends a project that some had hoped would revolutionize the automotive industry.
The decision would transfer several staff from the initiative, which is internally referred to as “Project Titan,” to the company’s artificial intelligence division, as reported first by Bloomberg, citing sources with knowledge of the situation. CNN is seeking a reaction from Apple (AAPL).
The news is released at a time when electric vehicle (EV) sales have fallen short of expectations, leading many major automakers to reduce investments and lower costs. Conversely, artificial intelligence (AI) is now trending, and Apple’s purported reallocation of resources might help it catch up to competitors like Google and Microsoft, who have jumped the gun on the innovative technology.
Investors’ excitement for electric car investments is dwindling, according to Susannah Streeter, head of money and markets at UK-based investing platform Hargreaves Lansdown. “The tech giant is following a trend,” she said.
In a message she sent on Wednesday, she emphasized the importance of Apple continuing to innovate and provide consumers with the technology they desire. She said that in order to justify the high prices of Apple goods, the company must fully explore the prospects that AI brings for its future ranges.
First to disclose the development was Bloomberg News, who said that certain project workers will be moved to the company’s AI business.
No comment from Apple.
“If it is true, Apple will put more focus on GenAI and that should give investors more optimism about the company’s efforts and ability to compete at a platform level on AI,” said Ben Bajarin, CEO of consultancy firm Creative Strategies.
However, challenges existed long before the worldwide spread of the COVID-19 epidemic impacted the car sector. In 2019, following a software strategy shift, Apple fired 190 employees from the department.
Additionally, the concept car’s design underwent a transformation from an avant-garde, autonomous vehicle devoid of a steering wheel – a drastic break from standard automotive design—to a more conventional vehicle equipped with sophisticated driver-assistance technologies.
The first reaction to the project’s announcement was one of optimism that Apple would be able to create another smash hit like the iPhone, which revolutionized the mobile phone industry with its sleek design and intuitive interface. However, as competitors introduce phones with identical specifications and affordable pricing, even iPhone sales.
the primary driver of Apple’s revenue—have begun to exhibit signs of slowing growth.
As demand for high-priced electronics as a whole has declined, so have sales of Apple’s iPad and Mac computers.
With additional reporting from San Francisco’s Abhirup Roy, Bengaluru’s Harshita Mary Varghese, and San Francisco’s Stephen Nellis, as well as editing from Pooja Desai and Arun Koyyur.
BREAKING: Apple, $AAPL, winding down electric car plans, ending decade-long foray, per Bloomberg.
Some Apple, $AAPL, car employees to be cut, many will shift to AI
— unusual_whales (@unusual_whales) February 27, 2024
