The shift in focus has been applauded by investors and analysts, who believe that the long-term profitability potential of AI revenue streams is greater than that of cars. However, the decision also eliminates a future revenue source at a time when Apple has been struggling to maintain growth. The company will now focus on applying AI to its current products, including the iPhone and iPad, and avoid falling further behind tech peers like Google, Amazon, and Microsoft. Apple is planning to reveal new AI capabilities at its conference for developers in June.
Key takeaways:
- Apple Inc. has abandoned its plans for a self-driving car, shifting its focus to generative AI and mixed-reality headsets.
- The decision to abandon the car project was made after months of discussions between top executives and the company's board, and the news was broken to the team by COO Jeff Williams and project head Kevin Lynch.
- Apple's AI efforts will now focus on catching up with rivals in the generative AI industry, and turning the Vision Pro headset into a mainstream product.
- While the decision to abandon the car project eliminates a potential future revenue source, analysts believe shifting resources toward generative AI is the right call given the long-term profitability potential of AI revenue streams versus cars.