In an unexpected move that has taken industry-watchers and investors by surprise, Apple Inc. has reportedly abandoned its much-anticipated electric car project.Â
The tech behemoth’s automobile experiment, dubbed the ‘Special Projects Group’, will gradually be phased out, signaling the end of what was widely considered as Apple’s bid to challenge Tesla’s supremacy in the EV kingdom.
An Apple Car? No More!
In a scenario reminiscent of heated races at a Grand Prix, the Apple CEO waved the proverbial checkered flag entailing the end to the high-speed pursuit of conquering the electric vehicle industry.Â
Not unfamiliar to strategic shift lanes, Apple’s decision, albeit surprising, resonates with its propensity to lean towards consumer electronics and online services primarily.
Dubbed as a secretive yet colossal endeavor competing with Tesla’s dominance, Apple’s car project once boasted an army of thousands, featuring automotive engineers and talents nurtured by automobile companies.Â
Set in motion back in 2014, the project had been an elusive entity, with sporadic leaks and rumors dominating the public discourse.
Although Apple had kept its cards typically close to its chest, on-the-ground reality bore evidence of the company’s ambitious project as autonomous Apple-branded vehicles equipped with high-tech sensors were spotted cruising across the San Francisco Bay Area.
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Realigning the Forces
The Special Projects Group at Apple endured several overhauls during its existence, including stinging layoffs in 2019 that led to employees being reallocated within the company.Â
This anticipated wind-down suggests some of these talents could possibly land in generative artificial intelligence teams led by Apple.
The blow, however, does not signal the complete exodus of Apple from the automotive landscape. The company still boasts its infotainment CarPlay software, a mainstay in about 80% of new vehicles, corroborating Apple’s stake in the automotive technology segment.
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Looking Beyond Car Manufacturing
Apple’s experiment with EVs was in tandem with its objective to explore potential markets with transformative technologies, pushing research boundaries in health tech, particularly for the Apple Watch.Â
This dual strategy recently bore fruit as the company unveiled its first VR headset, the Vision Pro.
Interestingly enough, Apple’s Asian rivals have taken a completely different route with significant investments in car designing and manufacturing.Â
Xiaomi took the world by storm, announcing a brand-new EV this week, while Foxconn, an Apple manufacturing ally, disclosed its intentions to make electric vehicles last year.
The Apple CEO has been notoriously coy about the car project, referring to it as an “autonomous systems” scheme.Â
In a 2016 exchange with a shareholder, he remarked cryptically, “it’s going to be Christmas Eve for a long time.” However, the cryptic comment now indicates a long and uncertain future for Apple’s venture into car manufacturing.
With the parting fog, the actual extent of Apple’s expenditure on the doomed auto project remains a riddle wrapped in a mystery.Â
Regardless, it’s clear that the tech titan is strapping in for some exciting times ahead, even as its ill-fated road trip into the world of electric vehicles reaches an unanticipated but dramatic finale.
Apple’s stocks rose modestly post the news on Tuesday, while official confirmation or comments from the tech heavyweight are still awaited.
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Joe Wallace is a writer and editor from Illinois. He was an editor and producer for Air Force Television News for 13 years, and has served as Managing Editor for publications including Gearwire.com, and Associate Editor for FHANewsBlog.com. He is also an experienced book and script editor specializing in non-fiction and documentary filmmaking
