It has been stated that Apple has made the decision to abandon its intentions to construct electric cars (EVs) ten years after it was speculated that the company would be working on the project.
Despite the fact that over two thousand individuals are involved in the project, the company has never publicly acknowledged it.
According to Bloomberg News, a significant number of people already working on the project will be transferred to the artificial intelligence (AI) branch of the iPhone manufacturer.
A request for a comment from the global media was not immediately met with a response from Apple.
As part of Apple’s Chief Executive Officer Tim Cook’s Project Titan, the Apple automobile team was purportedly referred to as the Special Projects Group on multiple occasions.
There were initial rumors that the firm was working on a fully autonomous vehicle that did not have a steering wheel or pedals. This was despite the fact that the corporation has invested billions of dollars in research and development.
It was generally believed that the team would not be able to produce a vehicle for several years longer.
“This is a smart and long-awaited decision,” Ray Wang, founder and chief executive of the consultancy Constellation Research, which is located in Silicon Valley, said in an interview with the global media.
“The market demand for EVs is not there, and AI is where all the action is,” said the economist.
Other opportunities, in addition to the iPhone and computers, have been investigated by Apple, including the virtual reality headgear known as Vision Pro, which was just recently introduced.
Counterpoint, a research organization, announced that the decision was made at a time when the market for artificial intelligence in consumer devices is experiencing rapid growth.
“Preliminary data suggests that shipments of generative AI smartphones will exceed 100 million units in 2024,” said Ivan Lam, the senior analyst for which the company is responsible.
The number could reach more than 500 million by the year 2027, according to Counterpoint’s projections.
As a result of the continued high cost of borrowing money, the demand for electric vehicles has decreased over the past several months. This has resulted in an increase in market competition as key firms strive to win over customers.
Over the past few months, U.S. automobile industry giants Ford and General Motors have delayed their plans to increase their manufacturing of electric vehicles.
Rivian, a manufacturer of electric trucks, made the announcement last week that it would reduce its personnel by ten percent and stated that it did not anticipate any growth in its production this year.
A warning was issued by Tesla in January stating that the company’s sales growth will be lower this year compared to 2023.
As a result of the intense rivalry it confronts from Chinese competitors like BYD, the company, which is helmed by the multibillionaire Elon Musk, has been lowering prices in major regions all over the world, including Europe and China.
In response to news that the Apple project was being wound down, Mr. Musk commented on the social media platform X, which was formerly known as Twitter, with emojis depicting a salute and a cigarette from his perspective.