In the last decade, Apple invested over $10 billion in a project internally known as Titan, aimed at developing an electric vehicle (EV). However, this ambitious endeavor faced multiple setbacks, internal disagreements, and strategic shifts before ultimately being canceled.
The demise of the Apple car project offers insights into the challenges the tech giant faced in post-Steve Jobs years, shedding light on the difficulties of navigating the complex automotive landscape.
Apple’s Project Titan
The project, originally led by Steve Zadesky, commenced in 2014 amidst a flurry of interest in self-driving cars. Apple, with a desire to venture beyond iPhones and counter a potential engineering brain drain to Tesla, approved the Titan project under CEO Tim Cook. The initial vision was an electric vehicle, set to rival Tesla, but internal disagreements soon surfaced.
Zadesky envisioned a competition-ready electric car, while Jony Ive, Apple’s Chief Design Officer, advocated for a self-driving vehicle. This internal discord set the tone for the project’s tumultuous journey.
Apple, flush with cash, embarked on a hiring spree, attracting talent with expertise in machine learning and other AI-related fields. This influx of external hires marked a departure from Apple’s traditional insular culture.
The project, reaching a team size of over 2,000 employees, fostered the development of various cutting-edge technologies, including a windshield with turn-by-turn directions and a sunroof using special polymers to reduce heat.
Star executives like Ive and Bob Mansfield, Head of Mac Engineering, lent their support. Apple even acquired startups to fortify the car team. In 2021, Kevin Lynch, the executive behind the Apple Watch, took charge in a bid to steer the project towards success.
2016 – Things Start Turning Bad for Titan
Despite these efforts, signs of trouble emerged in 2016 when Zadesky left, and Mansfield informed the team of a shift in focus from building a car to developing self-driving software. Apple obtained permits for test-driving modified Lexus SUVs and explored partnerships with car manufacturers like BMW and Mercedes-Benz before settling on Volkswagen for self-driving shuttles.
Leadership changes continued with Doug Field, a former Tesla executive, laying off over 200 employees to prioritize the self-driving system. Lynch, Field’s successor, reverted to the original plan of creating an electric vehicle.
By the beginning of this year, Apple’s leadership deemed generative AI a more worthwhile investment than the car project, leading to its official discontinuation.
The decision to scrap the project was met with approval from those who had worked on it. They recognized the potential of generative AI in enhancing the iPhone business, signaling a shift in Apple’s strategic focus.
The underlying technologies developed for the car project will not go to waste; instead, they will be leveraged for other ventures, including AI-powered AirPods with cameras, robot assistants, and augmented reality.
Apple EV Project Faced Various Challenges
Apple’s foray into the electric vehicle market faced challenges on multiple fronts. The constantly shifting strategy, marked by leadership turnovers, created instability. The anticipated release of the EV was years away, coupled with concerns about the stagnating EV market due to inadequate charging infrastructure. Developing self-driving technology proved trickier than expected, contributing to the project’s ultimate demise.
Additionally, the financial aspects played a crucial role. The projected cost of the Apple EV, estimated at $100,000, posed a significant challenge in terms of profit margins compared to Apple’s lucrative iPhone and earbud businesses. The company faced a stark reality – investing hundreds of millions of dollars annually in a project with uncertain market success was not a sustainable long-term strategy.
The decision to scrap the EV project underscores Apple’s acknowledgment of the challenges posed by the automotive industry. Instead, the company will redirect its efforts towards generative AI, a field with promising applications for its core products. Apple aims to harness the lessons learned from the car project to propel advancements in automation, AI, and other technologies.
Apple’s multibillion-dollar EV car plan, known as Project Titan, faced a myriad of challenges leading to its recent cancellation. The project’s evolution from an electric vehicle to a self-driving car showcased the internal disagreements and strategic shifts within Apple’s leadership. The decision to prioritize generative AI over the EV project shows the priority of the company going forward and focusing on technologies with broader applications across its product portfolio.
