Why Apple Killed the $10 Billion Car Project

🌈 Abstract

The article discusses the cancellation of Apple's "Project Titan" - their secret mission to build an all-electric, self-driving car. It explores the reasons behind this decision, the challenges Apple faced in the project, and what it means for the company's future.

🙋 Q&A

[01] The Origins and Ambitions of Project Titan

1. What were the initial plans and goals for Project Titan?

• In 2008, Apple's leaders like Tony Fadell and Steve Jobs toyed with the idea of an Apple Car, but it was put on hold due to the focus on launching new products like the iPhone, iPad, and Siri.
• In 2015, Apple revived the car project, code-named "Project Titan", with the goal of developing an all-electric, self-driving car to be sold by 2020.
• Apple assembled a team of 1,000 people, led by former Ford engineer Steve Zadesky, to turn this dream into reality.

2. What were some of the early challenges and setbacks faced by Project Titan?

• Building a car was much more complex than making a smartphone or laptop, and industry veterans were skeptical of Apple's ability to succeed in the automotive industry.
• Apple explored potential collaborations with companies like BMW, but making a car proved to be a "rough road filled with challenges".
• Partnerships faltered and the project's direction seemed unclear at times, leading to internal doubts and changes in leadership.

[02] The Shift in Focus and Eventual Cancellation

1. How did the focus of Project Titan evolve over time?

• Apple shifted its focus from developing a complete car to instead working on self-driving software, testing their technology on Lexus SUVs.
• They also explored other automotive ventures, such as partnering with Volkswagen for self-driving shuttles and acquiring startups like Drive.ai.
• However, the dream of an Apple-branded car that customers could buy and drive seemed to drift further away.

2. What led to the eventual cancellation of Project Titan?

• By 2022, Apple had scaled back its self-driving capabilities and was aiming for a more modest price tag for the potential vehicle.
• Disagreements arose within the team on whether to focus on electric vehicle technology or autonomous driving, leading to multiple changes in leadership and a lack of a consistent vision.
• The shifting market trends, such as the slower-than-anticipated adoption of EVs and the rise of AI developments, made it clear that the expected profit margins would not align with Apple's historic success in hardware design and sales.
• These factors led to the tough decision to cease the car project.

[03] Implications and the Future

1. What does the cancellation of Project Titan signal for Apple?

• The discontinuation of the Apple Car project represents a moment of reflection for Apple, showcasing the complexities of venturing into new industries, especially one as established as the automotive industry.
• It also demonstrates Apple's adaptive nature and willingness to realign its focus towards future technologies where it sees a more direct path to influence and success, such as AI.

2. What does the future hold for Apple's innovation efforts?

• While the dream of an Apple Car may have been parked, the journey has left an indelible mark on Apple's strategic planning and innovation pathways.
• The article suggests that Apple's quest to change the world with groundbreaking products continues, hinting at the possibility of the Apple Vision Pro as the company's next big innovation.