iPhone maker Apple has stopped its decade-long self-driving electric vehicle development, named internally as Project Titan. The $2.8 trillion tech giant has left behind the cutthroat world of electric cars. It has always been a means to an end for Apple to get motorists who would be hands-free to interact more with their technology while riding in their self-driving cars.
This interaction would map consumers’/users’ movements, tastes, and habits, which would be powerful fuel for its AI efforts. Fortunately, Apple can do that without manufacturing self-drive cars. Apart from its flagship product, the iPhone, it has the recently released Vision Pro augmented reality headset.
The technology sector often enjoys higher margins compared to automotive manufacturing, which typically requires substantial investments in production facilities and labour. By leveraging its expertise in AR, AI, and consumer electronics, Apple can potentially generate significant profits without the complexities and costs associated with building cars, not to mention the $1 billion annual research budget.
This change of heart comes after Tesla’s recent hefty decline. Apple saw how Tesla grew exponentially over the last few years, tapping into a market for electric vehicle drivers. It was a market to tap into for the dual use of profits and interaction with Apple tech. Tesla’s profits have nearly halved after Chinese EV makers have managed to sell cheaper electric vehicles. This caused Tesla to lower prices twice to be competitive.
Employees will be reassigned to generative Artificial Intelligence research and production.
Apple is still on course for AI riches, even if it’s not travelling in self-driving style and luxury.