Apple CEO Tim Cook waves the checkered flag for the race winner at the F1 U.S. Grand Prix Circuit of the Americas on October 23, 2022 in Austin, Texas.
Mike Seeger | Reuters
apple The company plans to downsize the team working on electric vehicles, called the Special Projects Group, according to the company. to bloomberg.
The news signals the end of Apple’s secret efforts to develop a car to rival its rivals. tesla. The program employed thousands of people, but it didn’t quite fit into Apple’s core businesses of electronics or online services, raising questions about where Apple would turn to make its cars.
First, reports on Apple’s ambitions to make cars surfaced in 2014 The company then hired automotive engineers and other talent from car companies. There was little public information about Apple’s plans, but the company was running a program in which Apple-owned self-driving cars equipped with sensors and safety drivers would tour the San Francisco Bay Area.
Apple’s Special Projects Group has undergone several reorganizations over the years, including layoffs in 2019 when employees were transferred to other parts of the company. According to Bloomberg, some Apple employees in the automotive division may move to the generative artificial intelligence team.
The company has other automotive projects in the works, including CarPlay infotainment software, which Apple says is installed in 80% of new cars.
Apple’s car project was part of an internal effort by the company to find technologies it could develop for a huge potential market. Apple continues to develop health technology specifically for the Apple Watch. And last month, the company released its first virtual reality headset, the Vision Pro.
Some of Apple’s Asian rivals in smartphones are investing heavily in vehicle design and potentially manufacturing. Android smartphone maker Xiaomi announced a new electric car this week. Foxconn, Apple’s main manufacturing partner, announced last year that it would build electric cars.
Apple and CEO Tim Cook have not publicly acknowledged the car project, instead calling it research into “autonomous systems.” In 2016, Cook was asked about the project by a shareholder and teased, “Christmas Eve will be around for a long time.”
As part of its silence, Apple has not disclosed its spending in the automotive sector. Overall, the company spent about $30 billion on research and development in his 2023, an increase of 14% over the previous year. Apple’s research and development budget includes investments in new software and features for existing products such as the iPhone.
Apple shares rose less than 1% on Tuesday’s news. Apple declined to comment.
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