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Please leave your condolences and congratulations on AppleCar’s death. Who needs expensive, low-margin electric cars when you have vague hopes for AI?
After a decade of ill-fated travels, Apple is bidding farewell to its car project and redirecting resources to its artificial intelligence division. It’s a blow to everyone who wanted to know exactly which generation of Fiat 500 Jony Ive paid homage to.
If this decision was an admission of defeat — Elon Musk responded to the X news with a salute and a cigarette emoji — it didn’t feel like an admission of defeat. The reaction from several analysts and the market was something akin to a “good banishment.”
Dan Ives, an analyst at Wedbush Securities, said ceasing the multibillion-dollar rebel operation will allow Cupertino to focus on a broader AI strategy within the Apple ecosystem. He said he was deaf.
And Apple’s software and intuitive design are already reshaping the auto industry through CarPlay, the software that connects your iPhone to your car, effectively turning other companies’ hardware into an extension of your walled garden. Some people point out that it is changing.
And leaving our automotive ambitions in the realm of software means we’ll never let 3,000 pounds of dented, muddy, and most of all rusted products sully the world’s cleanest brand. Or even on the grass. As long as it continues to be updated, it will always be new.
The delay seems timely, since Apple took so long to back away from its high-stakes gamble. New entrants are intensifying competition in the electric vehicle market, causing price wars and squeezing profits.
Even EV tycoon Tesla, whose anti-Detroit uprising sparked Apple’s car ambitions, is hitting roadblocks. An expected slowdown in demand in 2024 clouds the company’s outlook. And without Big Tech’s vast, multi-sector operations, Tesla has fewer business areas to rely on. The stock has fallen nearly 20% so far this year. Tesla’s rise is unlikely, but its long-term success still depends on largely unproven self-driving technology.
The incredible growth of the Magnificent Seven winners – Nvidia (NVDA), Meta (META) and, to a lesser extent, Microsoft (MSFT) – is in the early stages of developing AI tools, so why is Apple buying Tesla? This makes me question whether I’ll pursue it further. It was very promising.
Mr. Musk’s recent fuss about unlocking Tesla’s AI potential makes Apple’s exit from cars even more persuasive. CEO Tim Cook already has multiple pipelines for intimate data collection and a platform for refining AI tools. Musk’s car is parked outside. Cook’s screens engulf you at night.
But whether the world’s most valuable company is changing its staff to match current trends, from its bold EV project to pursuing a more engaging version of ChatGPT, or immersion that draws users deeper into its world, There’s something too on the nose and a little dark about finding a way to type. sofa. One might think that the phrase “If you can’t beat them, join them” doesn’t apply to companies that are stuffing hundreds of billions of dollars into addressing problems.
At the company’s annual shareholder meeting earlier this week, Cook said Apple would share details about new AI capabilities later this year. It’s not yet clear how AI will revive Apple’s growth story. But at least now we know where it doesn’t come from.
Hamza Shaban is a reporter for Yahoo Finance, covering markets and economics. Follow Hamza on Twitter @hshaban.
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