Why Apple gave up on its car project after a decade of work

Apple is known for its innovation and disruption in various industries, from personal computers to smartphones to tablets. But one sector that the tech giant failed to conquer is the automotive industry. After working on a secret project to develop an autonomous electric car for nearly 10 years, Apple has reportedly canceled its plans and shifted its focus to other areas of artificial intelligence (AI).

The news of the cancellation was first reported by Bloomberg, which cited sources familiar with the matter. According to the report, Apple’s chief operating officer Jeff Williams and the vice president in charge of the car project, Kevin Lynch, announced the decision to the team of about 2,000 employees in a short meeting on February 27, 2024. The employees were told that they would be reassigned to different roles within the company, including in Apple’s AI division, or they would have 90 days to find another position or leave.

The cancellation of the car project, known internally as Project Titan, is a rare move by Apple, which usually does not shelve such high-profile and ambitious initiatives. It is also a blow to the company’s reputation as a leader in innovation and a potential source of new revenue and growth. Apple’s entry into the car market was seen as a challenge to Tesla, the dominant player in the electric and autonomous vehicle space, as well as to other traditional automakers that are investing heavily in the future of mobility.

What went wrong with Project Titan?

Apple’s car project was shrouded in secrecy and speculation since its inception in 2014. The company never officially confirmed or denied its existence, but there were many clues and hints that suggested its progress and direction. For example, Apple hired several executives and engineers from the automotive industry, including from Ford, Tesla, BMW, and Canoo. It also acquired several startups and patents related to car technology, such as Drive.ai, Xnor.ai. It also reportedly tested its prototype vehicles on public roads in California and other states, and even held talks with potential suppliers and manufacturers, such as Hyundai, Kia, and Magna.

However, the project also faced many challenges and setbacks along the way. One of the main difficulties was the lack of a clear vision and strategy for the car. Apple reportedly changed its focus several times, from building a fully autonomous car to a semi-autonomous car to a car with advanced driver assistance systems. It also struggled to find a unique selling proposition and a competitive edge over its rivals. It was unclear whether Apple wanted to sell its car to consumers or offer it as a service, or whether it wanted to partner with existing automakers or create its own brand.

Another challenge was the complexity and cost of developing a car, especially in the fields of electric and autonomous technology. Apple faced technical hurdles, regulatory uncertainties, and safety issues that required a lot of time, money, and expertise to overcome. Apple also had to deal with the competition and pressure from other players in the market, such as Tesla, Google’s Waymo, Amazon’s Zoox, and Uber’s ATG, which had more experience and resources in the car industry. Apple also had to cope with the economic downturn and the pandemic, which affected the demand and supply of cars and components.

What does the cancellation mean for Apple and the car industry?

The cancellation of the car project does not mean that Apple is giving up on the car industry altogether. The company still has a presence and a stake in the sector, through its software and hardware products, such as CarPlay, Siri, Maps, and AirPods, which are compatible and integrated with many car models and brands. The company also has a loyal and large customer base, a strong brand image, and a reputation for quality and design, which could give it an advantage if it ever decides to re-enter the car market in the future.

However, the cancellation also means that Apple is losing an opportunity to diversify its revenue streams and expand its product portfolio. The car industry is expected to grow significantly in the coming years, as electric and autonomous vehicles become more mainstream and affordable. According to a report by Grand View Research, the global electric vehicle market size was valued at $162.34 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of 22.6% from 2020 to 2027. Similarly, the global autonomous vehicle market size was valued at $54.23 billion in 2019 and is expected to grow at a CAGR of 39.47% from 2020 to 2027.

What is next for Apple and its AI ambitions?

The cancellation of the car project does not mean that Apple is abandoning its AI ambitions. On the contrary, the company is reportedly shifting its focus and resources to other areas of AI, such as generative AI, natural language processing, computer vision, and machine learning. These technologies are already powering many of Apple’s products and services, such as Siri, Face ID, Photos, Music, and News. They are also expected to enable new features and functionalities, such as improved voice and text interactions, personalized recommendations, augmented reality, and health and wellness applications.

Apple’s AI division, led by John Giannandrea, who joined the company from Google in 2018, is said to be working on several projects and initiatives, such as:

• A new version of Siri, which will be more conversational, contextual, and proactive, and will be able to handle complex queries and tasks across multiple domains and devices.
• A new version of iOS, which will have a AI Processing, redesigned user interface, more customization options, and more integration with third-party apps and services.
• A new version of AirPods, which will have built-in cameras, microphones, and sensors, and will be able to provide augmented reality experiences, such as navigation, translation, and entertainment.
• A new product category, which will be a wearable device that will monitor and improve the user’s health and wellness, such as blood pressure, heart rate, sleep quality, and stress levels.

Apple’s AI efforts are also supported by its hardware and software capabilities, such as its custom-designed chips, such as the A-series, M-series, and Neural Engine, which are optimized for AI performance and efficiency, and its frameworks and tools, such as Core ML, Create ML, and Swift, which are designed to make AI development and deployment easier and faster.

Apple’s AI vision is to create products and services that are intuitive, intelligent, and personalized, and that enhance the user’s life and experience. As Tim Cook, Apple’s CEO, said in an interview with Fast Company in 2019, “We see AI as a horizontal technology that can enhance the customer experience across all of our products. We want to infuse AI everywhere, but always with respect for the user’s privacy and security.”

Conclusion

Apple’s car project was one of the most anticipated and speculated projects in the tech industry, but it also turned out to be one of the most challenging and elusive ones. After a decade of work, Apple decided to cancel its plans and focus on other areas of AI. The decision has implications for Apple’s innovation and growth, as well as for the car industry and its competition. However, the decision also shows that Apple is not afraid to make bold and strategic moves, and that it still has a lot of potential and ambition in the AI field.