Apple Cancels Its Decade-Long Electric Vehicle Project

According to a source speaking to a news agency, Apple has canceled its work on an electric vehicle, which was thought to allow the iPhone manufacturer to step into a new industry and replicate the success of the iPhone. This decision marks the end of the project initiated a decade ago. The project experienced uneven progress and a significant drop in demand resulted from global car manufacturers pulling back their investments in electric vehicles.

Employees Shifted to the Artificial Intelligence Division

Some of the employees working on the project will be moved to the company’s artificial intelligence (AI) division. This development, first reported by Bloomberg News, suggests that Apple will focus more on AI, potentially making investors more optimistic about the company’s efforts to compete at a platform level in AI.

Concerns About Falling Behind in AI

Apple’s avoidance of major moves in AI, especially compared to technology giants like Alphabet and Microsoft, who have been pioneers in integrating AI technology into their operations, is noteworthy. This cautious approach by Apple raises concerns that it might fall behind in integrating the technology into its products. Last year, Apple’s stock gains were the lowest among the “Magnificent Seven” stocks.

Drop in Demand for Electric Vehicles

High interest rates are slowing down demand for electric vehicles, which are generally more expensive. This situation is leading the industry to lay off workers and cut production. Several major car manufacturers, including Tesla, have decided to pull back their investments, with some planning to focus on hybrids instead of fully battery-powered vehicles.

Project Titan

Apple began its vehicle effort, known as Project Titan, a decade ago during a period of growing interest in autonomous vehicles in Silicon Valley. However, the project has had a roller-coaster progress from the start, including being shaken by the global automotive industry’s disruption due to the COVID-19 pandemic. After rethinking its software approach in 2019, Apple laid off 190 employees from the group.

General State of the Electric Vehicle Sector

This cancellation comes as Apple faces challenges such as a slowdown in iPhone sales and competitors launching phones with similar features at competitive prices. Sales of iPads and Mac computers have also fallen due to a general decline in demand for expensive devices. This move by Apple is a significant example of how the tech giant is adapting to strategic shifts and new focus areas.