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Apple’s $10 Billion Gamble on the Apple Car Ends in Project Cancellation


Apple has invested over $10 billion in the past decade towards the development of the Apple Car. The comprehensive analysis highlights the obstacles faced by the project and its eventual failure earlier this week, following its launch by Apple in 2014.

The substantial investment was allocated to research and development, involving the collaborative efforts of thousands of Apple engineers and automotive experts. Within Apple, skepticism loomed as some employees foresaw the project’s likely failure from the outset, dubbing it “the Titanic disaster” rather than its internal codename, “Project Titan.”

Despite the endorsement of Apple CEO Tim Cook, the project faced insurmountable obstacles. The vision of creating an electric vehicle with self-driving capabilities presented financial challenges, with a projected cost exceeding $100,000, thin profit margins, and formidable competition.

Apple’s Independent Venture

Apple has invested over $10 billion in the past decade towards the development of the Apple Car.

While reports suggest Apple explored the possibility of acquiring Tesla and engaged in discussions with Elon Musk, the company ultimately opted for an independent car venture rather than assimilating Tesla. Elon Musk had acknowledged discussions with Apple back in 2014 but deemed an acquisition “very unlikely.”

Throughout its lifespan, the Apple Car project underwent leadership changes, with four different heads overseeing its development, and experienced fluctuations in scale. According to The New York Times, the primary reason for its downfall was Apple’s inability to master the intricate software and algorithms required for autonomous driving.

Following the project’s termination, over 2,000 employees involved in the Apple Car initiative will be reassigned, with some joining other teams to focus on AI and related technologies, while others will face layoffs. Apple intends to leverage the insights gained from the project for the development of AI-driven devices, such as AirPods with cameras, robot assistants, and augmented reality applications.

For a more in-depth exploration of the Apple Car’s downfall and the technologies Apple explored, refer to The New York Times’ comprehensive report.

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