Apple will not build and sell its own car. After a decade of rumors, Apple’s long, “secret” project is no more.
The New York Times reports, “The company told employees in an internal meeting on Tuesday that it had scrapped the project and that members of the group would be shifted to different roles, including in Apple’s artificial intelligence division.”
Bloomberg was first with the news.
Ten Years of Hints and Delays
Rumors that Apple would enter the car business began as early as 2014. At a time when Tesla’s entire lineup consisted of the early Model S sedan, Silicon Valley insiders viewed electric cars as a new frontier of technology.
Apple, Reuters explains, thought an electric vehicle (EV) of its own would help it “break out into a new industry and potentially replicate the success of the iPhone.”
The company hired a veteran Tesla engineer to run what it called Project Titan. Early plans said it would produce a self-driving, all-electric car by 2024. But Titan ran into some oversized problems.
Starting up a new automaker is one of the toughest challenges in the business world. It requires immense outlays of cash and tolerance for losses. The rewards can be immense. But getting to them is punishing.
Tesla, for instance, had its first profitable quarter selling cars in its 18th year in business. Within just a few quarters of getting above water, it was the world’s most profitable automaker.
Apple had the deep pockets to tolerate long losses. But it lacked a game-changing product. While it pursued electric cars and self-driving technology, Tesla made its name selling electric cars and pursuing self-driving technology. Virtually every other automaker, meanwhile, focused on designing electric cars. And pursuing self-driving technology.
No Big Innovations Left for Them
Even had Apple succeeded in bringing out a product, it risked looking more derivative than disruptive.
Progress was slow. Apple delayed the effort into 2026. Then, into 2028. It signed partnerships with legacy automakers and pulled out of them. It hinted at scaled-back plans. Rival tech company Sony teamed up with Honda to announce its own car project.
Now, finally, Apple appears to have given up. There’s just no iPhone-level innovation left for them to make. A product that makes a tiny splash in a crowded market would probably hurt the company’s leading-edge image.
A Consolation: You Probably Drive an Apple Car Now
Though you may never own a car with an Apple badge on the outside, odds are good that your next car will have one on a screen inside. Apple CarPlay, a system that mirrors a phone’s screen on a car’s touchscreen to give drivers access to apps behind the wheel, is now found in most new cars.
