Nov. 24, 2024, 4:57 p.m.

Business

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Apple's decision to end plans to build a car raises concerns

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Recently, the media news that Apple canceled the decade-long electric car plan, abandoning one of the most ambitious projects in the company's history, that is, "Project Titan", the decision has triggered widespread attention and discussion in the industry. After a decade of exploration, billions of dollars of effort and investment, Apple has finally decided to end the project. The total cost of the project exceeded several billion dollars, and the team number exceeded 2,000 people.

Apple's decision also means that most of the project's employees will be reassigned or laid off. It is reported that Apple plans to transfer most of the employees engaged in automotive research and development to the artificial intelligence department to focus on the research and development of generative artificial intelligence projects. However, for the hundreds of hardware engineers and car designers on the automotive team, the adjustment is undoubtedly a big blow. They had poured their blood and sweat into the Apple car project, hoping to create a product that would disrupt the automotive industry, but now faced the termination of the project and a career change. While they have the opportunity to apply for positions in other parts of the company, a large percentage of employees could still face redundancy. At present, Apple has not disclosed specific plans for layoffs.

In this regard, Tesla CEO Musk forwarded the news on social media, and with "salute" and "light up" memes, to express respect and regret for Apple's attempt in the field of self-driving cars. Musk sees the failure of Apple's car project as a pity and a cautionary tale about the difficulty and challenges in the field of self-driving cars. For the reasons for Apple to adjust its strategy, this incident is analyzed from multiple perspectives, mainly from the following aspects:

First, from a business perspective, Apple probably doesn't build cars because it doesn't fit with its core business. Apple has been focusing on the research and development and production of consumer electronic products, such as iPhone, iPad, Mac, etc., which are based on the combination of software and hardware, while the car business requires more heavy asset investment, such as production lines, factories, sales channels, etc. In addition, the competition in the automobile industry is also very fierce, not only the competition of traditional car companies, but also the competition of emerging technology companies, which is a new field for Apple, and needs to face great challenges.

Second, from a technical point of view, Apple has a deep accumulation in autonomous driving technology, but this does not mean that it can easily enter the car manufacturing industry. The automobile manufacturing industry needs to involve a wide range of technologies, including machinery, electronics, materials and other fields, and the technical difficulties in these fields are very high. In addition, the safety and reliability requirements of the car are also very high, which requires Apple to invest more energy and resources in the technology development and production process.

Finally, from a market perspective, although Apple's brand influence and user base are very strong, the automotive market is very different from the consumer electronics market. Consumers in the automotive market pay more attention to the quality and performance of products, rather than just the brand and appearance. In addition, the sales channels and after-sales service system of the automobile market are also very different from that of the consumer electronics market, which requires Apple to re-establish a new sales and service system.

In summary, Apple may not build a car because the car business is inconsistent with its core business, requires great challenges and investment, and the special nature of the car market. Although Apple has a deep accumulation of autonomous driving technology, it does not mean that it can easily enter the car manufacturing industry. In the future, we can expect other innovations and developments from Apple in the automotive space.

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