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Apple Shifts Focus from EV to AI and AR Development

In this post:

  • Apple shifts focus from EV to AI/AR, marking the end of a decade-long endeavor. 
  • Challenges and delays in the Apple Car project led to a strategic shift towards AI/AR.
  • Despite setbacks, Apple aims to leverage expertise in AI/AR for future growth and success.

In a surprising turn of events, Apple has decided to discontinue its electric vehicle (EV) project, marking the end of a decade-long endeavor. According to Bloomberg’s reliable source, Mark Gurman, the tech giant has shifted its focus away from the development of an Apple Car towards projects in artificial intelligence (AI) and augmented reality (AR). This decision comes after numerous setbacks and delays in the ambitious EV project, which struggled to maintain its initial ambitions.

Transitioning to AI and AR Projects

Apple’s Chief Operating Officer, Jeff Williams, along with project head Kevin Lynch, reportedly informed approximately 2000 staff members involved in the EV project about this decision earlier in the week. Many of these employees are expected to transition to working on generative AI projects and the recently launched headset business, aligning with Apple’s strategic shift towards AI and AR technologies.

The Apple Car project, initially named Project Titan, began in 2014 with a team of software specialists, battery experts, and automotive engineers. However, the project faced numerous challenges and setbacks, including difficulties in achieving high-quality standards for vehicle design and manufacturing, as well as struggles in establishing a profitable sales and service network. Additionally, negotiations with potential partners, such as VW, BMW, and Mercedes, failed due to disagreements over data sovereignty and brand control.

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Timeline of the Apple car project

The development of the Apple Car has been a rollercoaster ride for the company. Beginning in 2008, Apple contemplated the idea of an “iCar” following the launch of Tesla’s Model S. However, it wasn’t until 2014 that the project gained momentum with the formation of a dedicated team. Despite initial enthusiasm, the project experienced setbacks, including CEO Tim Cook’s decision to halt its progress in 2019 intermittently. Despite efforts to revive the project in 2020 with increased hiring and funding, delays continued, pushing the anticipated release date from 2026 to 2028.

Throughout its development, Apple explored collaborations with various car manufacturers, including Hyundai and Volkswagen, to leverage their expertise in hardware. Talks with Hyundai Kia focused on utilizing the E-GMP platform for electric vehicles, but no concrete agreements were reached. Despite initial aspirations for groundbreaking technology, recent reports suggest a more conventional approach, with traditional controls being reintroduced into the product plan.

Apple’s decision to abandon its EV project in favor of AI and AR development marks a significant shift in the company’s priorities. Despite initial aspirations to revolutionize the automotive industry, challenges and delays ultimately led to the project’s demise. As Apple redirects its resources towards emerging technologies, the future of AI and AR innovation holds promise for the company’s continued growth and success in the tech industry.

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