Apple was seemingly working on an electric car codenamed ‘Project Titan,’ which had yet to be announced. However, it appears that Apple hit a roadblock in the development process, prompting the company to discontinue work on the project. This move puts the final nail in the coffin after years of turmoil.
The report came from Bloomberg and Reuters, which said that according to people familiar with the matter, the decision to stop work on the Car project was internally disclosed by Chief Operating Officer at Apple, Jeff Williams and Vice President Kevin Lynch on February 27, leaving nearly 2,000 project employees stunned. Many of the employees will be transferred to a new team focused on generative artificial intelligence. This cutting-edge field aims to create novel content and data from existing ones, the report said. As for the employees, the reports says that there definitely will be layoffs but the exact number is unclear as of yet.
Artificial Intelligence has been a key priority for the brand, considering the competition has significantly ramped up its efforts in the area. The Titan project, which was started in 2014 by former design chief Jony Ive, faced multiple challenges and setbacks over the years as the company struggled to find a clear vision and direction for the car. The project also suffered from frequent leadership changes, internal conflicts, and high turnover rates, as many engineers left for rival companies or were laid off.
Apple’s most recently refreshed approach towards the development of the project internally was delaying the car’s release until 2028 and reducing self-driving specifications from Level 4 to Level 2+ technology. Apple had employees across the car industry working on the project, including designers from Aston Martin, Lamborghini, BMW and Porsche, read the report. Not only that but Apple was worried that even after setting a $1,00,000 price tag for the car, it might not be able to enjoy the margins it usually does on its products.
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Apple’s decision to abandon the car project comes as the company faces slowing growth and increased competition in its core products, such as the iPhone and the Mac. The company has been looking for new sources of revenue and innovation and has invested heavily in areas such as wearable devices, streaming services, and augmented reality.
However, the car project was seen as a potential game-changer for the company. Apple could have gone head-to-head with other major automakers such as Tesla, whose CEO celebrated the news of Apple quitting on the car development with a salute and a cigarette emoji.
Apple’s only major play in the automobile industry is now CarPlay, which is now being redesigned to integrate more deeply with vehicle controls and entertainment systems. This will also give Apple an EDGE over its competitors, considering how big the user base of iPhones is in the US.