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Apple Rival "Very Shocked" by the Apple Car Demise

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Photo: Xiaomi
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Apple's decision to stop the development of an electric vehicle took many by surprise, including the company's global rivals.
Xiaomi is one of the biggest names in the tech industry whose long-term strategy includes a car. The company's first model was announced earlier this year, and many considered it the only true competitor to a potential Apple Car.

Lei Jun, Xiaomi founder and chairman, says he was "very shocked" to hear about Apple's decision to stop the work on an electric vehicle. Lei considered Xiaomi's automotive expansion integral to the company's long-term strategy, so he got involved in the project, leading the development and securing investments of up to $1.4 billion.

Despite Apple's departure from this unexplored market, Xiaomi is still committed to building cars. Lei explained in posts on social media that Xiaomi would continue to build cars, as its investments in this sector involve an "unshakeable strategic choice."

However, Lei also defended Apple, acknowledging that building cars is indeed difficult. Like Apple, Xiaomi developed everything from scratch and invested millions of dollars in talent and new technology. Xiaomi's car team included approximately 3,400 engineers, while Apple's now dissolved car unit counted 2,000 employees.

Apple's decision to step away from building cars and focus on other products makes sense, said Li Xiang, the CEO of Chinese EV maker Li Auto. In a post on Weibo, Li Xiang explains that Apple made the right call by redirecting all resources to artificial intelligence, adding that the iPhone maker "should stay on top" of this sector.

Apple abandoned its electric vehicle project, reassigning some of its 2,000 employees to other units, including artificial intelligence. However, some engineers will be laid off.

The iPhone maker won't leave the automotive world entirely, with the focus to switch to software and services aimed at the driving experience. Apple Maps and CarPlay will receive more resources, especially as Apple's strategy seems to come down to an approach already adopted by Google.

A new-generation CarPlay is around the corner, with Aston Martin and Porsche confirming 2024 models to offer the new experience. Apple hasn't detailed the feature lineup of the upgraded CarPlay version, but the system will get deeper vehicle integration for access to more data, including battery information, tire pressure, onboard cameras, and other equipment. The new CarPlay will become a direct competitor to Android Automotive, Google's embedded operating system already powering models from General Motors, Volvo, and Renault.

Apple has remained tight-lipped on its automotive ambitions after the demise of the Apple Car, but it shouldn't take long until we figure out how the company plans to expand beyond the traditional tech world. With WWDC already on the radar, it's now a matter of time until we discover the next pack of improvements coming to the likes of Siri, CarPlay, and Apple Maps.
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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