I wasn’t all that surprised when Bloomberg recently reported that Apple was canceling its Apple Car project. However, he was disappointed that the project, which took him more than 10 years to develop, was unlikely to come to fruition.
Was this the first truly self-driving car? Either way, it’s disappointing to see Apple cancel such an ambitious effort. It’s understandable why, as Bloomberg’s Mark Garman writes: “The company’s board was also concerned about continuing to spend hundreds of millions of dollars a year on projects that would never see the light of day.”
That’s a reasonable inference, and as expected, Apple’s stock price rose after this report surfaced. why? Not only because Apple will save a lot of money, but also because the same report says the move will free up resources to focus on new generative AI capabilities. However, recent reports make me worried about Apple’s AI strategy.
Apple + Google = investors first?
You’ve heard of AI, right? It’s a buzzword that’s become a drinking game at every major technology event. OpenAI opened the floodgates with his ChatGPT, and Google is trying to catch up with its own Gemini product. And there are many other players in this explosive space, including Midjourney, Runway, and Claude.
Apple can’t compete with the Galaxy S24 and its Galaxy AI features, or the Google Pixel 8. Apple needs to innovate.
Currently, Apple CEO Tim Cook is reportedly considering a deal with Google to bring Gemini AI capabilities to the iPhone. Bloomberg reported the story, and the New York Times corroborated the rumor with its own reporting.
Some may see this as an extension of Apple and Google’s longstanding agreement. For this deal, Apple pays over $18 billion a year to make Google the default search engine for her Safari browser on her iPhone.
Sure enough, Apple’s stock price has risen since these new reports surfaced. But this doesn’t mean I want Apple to catch up with his AI race. Apple cannot compete with the Galaxy S24 and its Galaxy AI capabilities or the Google Pixel 8 and its generative AI capabilities. Apple needs innovation.
Breaking new ground in AI or breaking new ground?
In late February, during Apple’s annual shareholder meeting, Tim Cook promised that the company would be “pioneering new frontiers in generative AI.” But now I’m wondering if Apple will do a do-over instead.
Rumor has it that Apple has big plans for iOS 18, especially a new version of Siri. In fact, we’re hearing that iOS 18 will be the biggest iPhone software update ever, thanks to the AI features Apple has been working on. But I’m concerned that this rumored partnership looks like Apple taking a shortcut to relevance to appease investors.
It’s far from a mainstream hit, but I like Apple for “thinking differently” and taking bold risks. For example, Apple Vision Pro is heavy and expensive, but it also offers an incredible vision for the future of computing and entertainment. We also like the fact that Apple has decided to continue developing the product despite reports of internal conflict over whether the headset is ready for prime time.
Now Apple can continue to improve Vision Pro as it reportedly accelerates development of a lower-cost headset and eventually develops true AR Apple glasses. Could this whole category catch on fire? Maybe. Apparently Sony has completely discontinued production of the PSVR 2 headset due to excess inventory. But I think Apple has a very good chance to drive this category — investors are hungry.
It’s time to think differently
Now, back to AI. I’m excited to see what Apple can do with generative AI. And while it’s tempting to sign a deal with Google for short-term gains, they worry that Apple is bending its principles to please Wall Street. Connecting someone else’s search engine is another thing. But partnering with Google to bring its generative AI platform to the iPhone doesn’t sound very exciting.
To truly compete, Apple must put consumers first, not investors, and leverage AI in new and creative ways that are uniquely Apple.
