In a surprising turn of events, Apple has officially terminated its ambitious electric car project, according to a reliable source informed about the matter.
The decision, revealed on Tuesday, marks the end of a decade-long effort initiated by the tech giant to venture into the electric vehicle industry.
The abandoned project aimed to propel Apple into a new sector, potentially mirroring the triumphs of its iconic iPhone.
However, the venture faced challenges and inconsistent progress throughout its existence.
The cancellation aligns with a broader trend in the automotive industry, where global players are scaling back investments in electric vehicles amid a substantial drop in demand.
Reportedly, several team members previously engaged in the electric car project will be reassigned to Apple’s artificial intelligence (AI) division.
This strategic move aligns with Apple’s commitment to bolstering its presence in AI, a domain where it has been comparatively reserved.
Apple has refrained from significant AI initiatives, contrasting sharply with industry giants like Alphabet and Microsoft, which seized an early advantage in integrating this transformative technology.
Concerns have arisen that Apple’s cautious approach may leave it lagging behind in infusing AI into its product lineup.
Ben Bajarin, CEO of Creative Strategies, commented, “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.”
Last year, Apple experienced the smallest share gain among the so-called Magnificent Seven stocks, reflecting apprehensions about its stance on AI.
Microsoft recently surpassed Apple as the world’s most valuable company, underscoring Apple’s struggle with weakening demand for its key products, particularly in significant markets like China.
Simultaneously, the electric vehicle industry faces a slowdown in demand due to elevated interest rates, leading to job cuts and reduced production.
Apple’s shift in focus to AI reflects a strategic pivot in response to market dynamics and underscores the company’s commitment to staying at the forefront of technological innovation.
Apple has chosen to adapt its trajectory in a rapidly evolving landscape, signalling a nuanced strategy that aligns with emerging industry trends.
