Creating an entirely new car from scratch is definitely a challenging task, a reality even the world’s largest technology company Apple has to face.
After a decade of relentless efforts, Apple seems to have decided to end its electric car project, a milestone in the company’s product development history.
Although never officially announced, Apple revealed its plans through the creation of an electronic vehicle with unique features such as voice navigation, self-driving capabilities, and elegant design.
However, earlier this year, reports indicated that the project was facing a “life-or-death” moment, and unfortunately, it did not pass. The decision to abandon the billion-dollar car project was announced to the team of 2,000 members by Apple COO Jeff Williams and Vice President Kevin Lynch, the project’s leaders.
The termination of Apple’s electric car project is expected to result in some layoffs, but the exact numbers have not been disclosed. It is expected that some employees will be transferred to other projects, especially in the artificial intelligence department, where AI reproduction is becoming a top priority for Apple.
Earlier reports indicated that the project did not receive full support from Apple’s senior executives, and the company considered reducing the ambition to accelerate the development process of the iCar or cancel it altogether. The decision to abandon the project was made by the company’s top executives in recent weeks.
This decision was made in the context of rising interest rates, causing concerns about the affordability of electric car buyers and raising fears about profit challenges for startups. In addition, a series of self-driving car accidents has diminished public trust in this technology.
This has raised skepticism among investors, who seem to support Apple’s decision to cancel the iCar project, as evidenced by the company’s stock price increasing 0.5% following the reports.
Apple’s withdrawal from the electric car industry is not only a setback for the company’s ambitious product expansion but also a sign of the significant challenges the electric car industry is facing.
Reference: Carscoops
