Apple canceled its ten-year project to create a self-driving car Project Titan, the release of which was expected in 2028. Bloomberg writes about it.
Chief Operating Officer Jeff Williams and Project Manager Kevin Lynch broke the news to a team of around 2,000 people yesterday, February 27.. A third of the car development team will be transferred to other divisions. And those who worked on equipment, interiors, exteriors and electronics should find work within the company. If they are not found, they will be released.
Why did this happen?
Bloomberg analysts Anurag Rana and Andrew Girard believe this decision is correct. After all, now Apple will be able to focus on the field of AI to catch up with its competitors with OpenAI and Google. And also on the Vision Pro augmented reality headset, which was released on February 2.
Analysts believe that the AI market is more profitable than the automobile market. On the other hand, although the profit from the sale of the car would not be so significant, it would be guaranteed. As an example, Tesla Inc., which last year received almost $100 billion in revenue.
How soon artificial intelligence can bring Apple money is a big question. Anurag Rana and Andrew Girard say it's unlikely the company will have a full line of AI apps and features in the next few years. So for now, Apple will continue to make most of its money from hardware, with the iPhone alone accounting for about half of the company's revenue.
More about Project Titan
Rumors about Apple's secret car project, Project Titan, first appeared in 2015. Apple has hired a number of key leaders to work on it, including Tesla's former Autopilot software director and the former CEO of electric car startup Canoo. However, over the years, the project has encountered a number of obstacles, including the departure in 2021 of the head of Apple Car, Doug Field. Apple also struggled with high staff turnover, constant change of plans and internal skepticism, writes The Verge.