Bloomberg reports that Apple is closing its Special Projects Group, which was responsible for developing electric automobiles.
With this disclosure, Apple’s covert endeavor to produce a vehicle to compete with Tesla has come to an end. Although the program employed thousands of people, it never blended in with Apple’s primary business of selling devices and providing internet services. This led to concerns about where Apple would source its car manufacturing needs.
Following Apple’s 2014 hiring of automotive engineers and other expertise from auto companies, rumors about the company’s desire to construct an automobile first arose. Although Apple kept its plans mostly under wraps, the corporation undertook a test in which it owned cars that were fitted with safety drivers and sensors and drove themselves throughout the San Francisco Bay Area.
Over the years, Apple’s Special Projects Group saw a number of reorganizations, including layoffs in 2019 when staff members were transferred to other departments. Bloomberg reports that certain Apple workers in the automotive industry would transfer to a generative artificial intelligence unit.
The business is working on other automotive-related projects, like updating 80% of new cars with its infotainment system, CarPlay, according to Apple.
The Apple automobile project was a division of the company’s internal search for innovations that had enormous market potential. Apple is still working on health-related technology, particularly for the Apple Watch. Additionally, the company unveiled the Vision Pro, its first virtual reality headset, last month.
Several of Apple’s Asian smartphone competitors have made significant investments in the design and possible production of automobiles. This week, Xiaomi, a manufacturer of Android handsets, unveiled a brand-new electric car. The primary manufacturing partner of Apple, Foxconn, announced last year that it would produce electric cars.
The car project was never officially acknowledged by Apple or its CEO, Tim Cook, who instead referred to it as work on “autonomous systems.” When a shareholder questioned Cook in 2016 about the initiative, Cook joked that “it’s going to be Christmas Eve for a long time.”
Apple has not disclosed its spending in the automotive industry as part of its silence. In 2023, the firm invested over $30 billion in research and development, a 14% rise from the previous year. Apple invests in new software and features for its current products, such as the iPhone, as part of its R&D budget.
On Tuesday, the announcement caused Apple shares to rise by less than 1%. Apple said it would not comment.