Dead before it was born? Apple should give up its work on electric cars

The decision was sealed in Apple’s executive suite in recent weeks, Bloomberg wrote. It was previously said that Apple’s board of directors had asked CEO Tim Cook and current project manager Kevin Lynch for clarity on its plans following past policy changes and billion-dollar spending.

Apple has not commented on the report. The iPhone company traditionally keeps a low profile when it comes to potential future products. Years of speculation about an Apple television came to nothing – without the company ever commenting on it. The car fantasies also raised the question of what “the next big thing” could be for Apple after the extremely successful iPhone.

The only thing that was known for certain was that until recently Apple sent test cars converted into self-driving vehicles onto the streets of Silicon Valley. However, media reports stated that Apple had already developed vehicle interiors and various components in some cases. The possible price for an Apple car was $100,000 – not an unusual amount for top electric models.

Bleak prospects

However, the outlook for electric car sales is bleak, especially in Apple’s home market of the United States. The pioneer Tesla, which has grown explosively in recent years, has not yet dared to predict turnover for this year.

Auto giants like Ford, which mobilized resources during the coronavirus pandemic to chase Tesla with electric versions of their full-size pickups and SUVs, have recently slowed their loss-making production of electric vehicles. Their American customers currently prefer to buy petrol and hybrid models – after all, this replenishes the coffers of the top dogs. On the other hand, Tesla challengers like Rivian and Lucid, which are purely focused on electric cars, have no additional source of money to offset their losses.

Focus on AI

Some developers from Apple’s automotive team will work on artificial intelligence (AI) software in the future, Bloomberg and the Wall Street Journal wrote, citing informed people. They should therefore focus on the hot topic of generative AI: programs like the chatbot ChatGPT, which can generate new content based on a huge amount of captured information. Apple’s activities in this area have so far been less visible than those of Microsoft, which signed a pact with ChatGPT developer OpenAI. Apple’s automotive team also consists of several hundred hardware developers, as Bloomberg reported. They can be posted to other departments. But there will also be layoffs.

In recent years, frequent personnel changes have also highlighted the turmoil surrounding the Apple project, which was codenamed “Titan” according to media reports. Former Tesla executive Doug Field, who was once appointed head, left for Ford in 2021, where he is now responsible for the electric car and digital business.

Skepticism in the sector

Even as the hype surrounding a possible Apple car has repeatedly made waves in recent years, some industry experts have always been skeptical about whether the company would actually go through with it. The activities of the car industry are too different, they argued. Instead of compact electronic packages, vehicles would ultimately have to be shipped around the world and maintained for years. Development cycles take years instead of months due to regulatory requirements – and margins are also much lower than Apple’s core business. Automotive industry executives repeatedly pointed out that it was not so easy to build a vehicle.

This is probably why there has been speculation time and time again that Apple could take a shortcut by acquiring a car manufacturer like McLaren or an automotive supplier. Tesla boss Elon Musk claimed a few years ago that he had made an offer to Apple to buy the company amid the automaker’s existential problems as production of the full-size Model 3 began. Apple CEO Cook showed no interest in a meeting.

Sony and Xiaomi in the starting blocks

With a launch in 2028, Apple would not have been the first electronics company with its own car: Sony wants to launch the electric vehicle developed together with Honda under the brand name Afeela in 2026 and will bring the car to market before pre-sale next year. accepts orders in the US. Xiaomi, a provider of smartphones and other electronics from China, wants to soon sell its SU7 electric car in the home market. Google once developed a small self-driving two-seater, but sister company Waymo is now integrating its robotaxi technology into Jaguar electric cars.

And Apple will remain present in many cars: for example, through the Carplay software for connecting the iPhone, which allows services from the smartphone to take over the screen of the infotainment system. Some industry experts are convinced that Apple – and Google with its similar Android Auto service – can challenge established manufacturers for future digital activities. They are responding with their own digital offerings – and at General Motors, Carplay and Android Auto are even being left out of future electric models. (sda/dpa)