Apple Abandons Long-Awaited Electric Car Plans

News Desk2 months ago

The action ends a scheme that would have helped Apple enter into a new industry and potentially emulate the iPhone’s success.

The project made patchy progress throughout its life, and its conclusion comes as global manufacturers reduce their investments in electric vehicles, whose demand has plummeted dramatically.

According to Bloomberg News, which broke the news first, several project employees would be transferred to the company’s artificial intelligence (AI) business.

Apple declined to respond.

“If it is true, Apple will put more emphasis on GenAI, which should give investors more confidence in the company’s efforts and ability to compete on a platform level with AI,” said Ben Bajarin, CEO of consulting firm Creative Strategies.

Read more: Apple Regains Crown by Beating Samsung in Q4 of 2023
Apple has thus far refrained from making significant AI investments, in contrast to corporate behemoths such as Alphabet and Microsoft, which have a head start in implementing the game-changing technology. Its stealthy approach has raised concerns that the iPhone maker may be delayed in incorporating the technology into its products.

That was reflected in Apple’s share rise last year, which was roughly 50%, the smallest of the so-called Magnificent Seven stocks. Last month, Microsoft overtook Apple as the world’s most valuable company as the iPhone maker grapples with weakness in demand for its key products, especially in major market China.

Meanwhile, high interest rates have led to a slowdown in demand for usually pricier electric vehicles, prompting the industry to cut jobs and reduce production.

 

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