The Reasons Behind Apple's Smart Car Project Halt

1 year ago

After announcing a series of innovations and cutting-edge technologies, and after investing 10 years of time and effort in its development, spending nearly $10 billion according to American newspapers; Apple decided to halt its ambitious project to produce an electric car under the name Titan as part of a comprehensive iCar series. This decision has caused a major shock among the project's workers, numbering about 2,000 employees and engineers.


Related: Apple invents technology to transform the front windshield into a large screen using augmented reality technology.


The announcement of this decision, which shocked the project's workers within Apple, was made on Tuesday, according to Bloomberg. The announcement was made by Jeff Williams, Chief Operating Officer, and Kevin Lynch, Vice President responsible for the project.


The leaders explained to the employees that the process of liquidating the project would begin soon, with many of the employees from the Car team (SPG) being transferred to the Artificial Intelligence department led by John Giannandrea. Currently, projects related to artificial intelligence seem to be of greater importance to the company.


Perhaps the reason behind this decision is to intensify Apple's focus on the field of generative artificial intelligence, at a time when giants like Microsoft and Google are investing heavily in this field, which will require Apple to face many challenges in competing with them in the near future.


However, there are many reasons preventing Apple from resuming its project, including its inability to compete with Tesla or even the Chinese car market and keep up with the rapid and unexpected developments there. Apple also recognizes all the challenges of the global car market, which many American and European companies have begun to address complaints and solutions, especially regarding the spread of Chinese cars around the world, as well as its shortfall in the face of the significant advancement in the field of autonomous driving and its lack of sufficient experience compared to Google and Waymo.


The Apple Car team includes many hardware engineers and car designers, who may find other job opportunities within the company. - Apple has not yet responded to requests for comment on this news.


Some investors welcomed the decision, leading to a reduction in losses in the company's shares on Tuesday. Elon Musk, CEO of Tesla, also welcomed the decision through a post on the X platform.


It is worth mentioning that Apple began work on the iCar project in 2014, with the aim of producing a self-driving electric car, but the project faced several difficulties along its path.


As Apple continues to invest in other areas, and after the launch of the Vision Pro headset product, it appears that the company is focusing on new sectors. Tough decisions like canceling the electric car project raise questions about the company's future directions and its ability to predict market and technological challenges.


Apple remains known for its calculated strategic decisions, and this decision may be part of a broader transformation in the company, with a focus on developing generative artificial intelligence technologies and other innovations.