Photo: tedoradze.giorgi via Instagram
The Apple Car is dead, with the Cupertino-based tech giant abandoning the project after ten years of hard work and $10 billion invested in several ideas that failed to lead to something worth mass producing.
The first time someone at Apple thought about building a car was in Steve Jobs' era when the company's co-founder and CEO wanted the iPhone maker to build a vehicle as iconic as the Volkswagen Beetle. Jobs dropped the idea after discussing it with other executives, albeit the project was never abandoned completely.
Tim Cook started the actual work on the Apple Car in 2014 with a revolutionary ambition that would have provided the world with the first fully autonomous living room on wheels. Apple didn't have the resources or the know-how to make it happen, and after failing to find a carmaker to build the vehicle, it even tried to take over car manufacturers, including McLaren.
All these approaches failed, so Apple eventually tried to make the Apple Car on its own. Several years and billions of dollars later, Apple dropped the project.
Apple watcher Mark Gurman reveals that the Apple Car was considered a so-called ultimate mobile device. The vehicle would have become an iPhone companion, helping the company expand its product ecosystem and targeting Apple customers specifically.
Despite the smaller profits, Apple would have made billions of dollars with the Apple Car. A vehicle doesn't have the same margin as an iPhone, but Apple considered a $100,000 price tag for the Apple Car. It's estimated that the Apple Car would have eventually become a $50 billion business, which is the size of the iPad and Mac, two of Apple's biggest units, combined.
While Apple misses this massive opportunity to generate billions in profits, it doesn't mean it has completely abandoned the automotive space. Apple will no longer build a car, but its automotive ambitions are now centered around other products, like Apple Maps and CarPlay.
Apple still wants to conquer the automotive world, and CarPlay is a key product in this strategy, as it'll ensure that its software and services remain available in the car. The second-generation CarPlay is on its way, with Aston Martin and Porsche to install it on their first models due this year. The adoption of the new CarPlay version progresses slowly, particularly because Apple works directly with every carmaker to integrate the new experience into their cars.
This collaboration is required because Apple wants to give manufacturers the freedom to customize the infotainment system's look and feel to retain their brand's identity without losing the expected CarPlay functionality. More carmakers, including Honda and Ford, will adopt CarPlay 2.0, albeit it's unclear if their first models will launch this year or in 2025.
Tim Cook started the actual work on the Apple Car in 2014 with a revolutionary ambition that would have provided the world with the first fully autonomous living room on wheels. Apple didn't have the resources or the know-how to make it happen, and after failing to find a carmaker to build the vehicle, it even tried to take over car manufacturers, including McLaren.
All these approaches failed, so Apple eventually tried to make the Apple Car on its own. Several years and billions of dollars later, Apple dropped the project.
Apple watcher Mark Gurman reveals that the Apple Car was considered a so-called ultimate mobile device. The vehicle would have become an iPhone companion, helping the company expand its product ecosystem and targeting Apple customers specifically.
Despite the smaller profits, Apple would have made billions of dollars with the Apple Car. A vehicle doesn't have the same margin as an iPhone, but Apple considered a $100,000 price tag for the Apple Car. It's estimated that the Apple Car would have eventually become a $50 billion business, which is the size of the iPad and Mac, two of Apple's biggest units, combined.
While Apple misses this massive opportunity to generate billions in profits, it doesn't mean it has completely abandoned the automotive space. Apple will no longer build a car, but its automotive ambitions are now centered around other products, like Apple Maps and CarPlay.
Apple still wants to conquer the automotive world, and CarPlay is a key product in this strategy, as it'll ensure that its software and services remain available in the car. The second-generation CarPlay is on its way, with Aston Martin and Porsche to install it on their first models due this year. The adoption of the new CarPlay version progresses slowly, particularly because Apple works directly with every carmaker to integrate the new experience into their cars.
This collaboration is required because Apple wants to give manufacturers the freedom to customize the infotainment system's look and feel to retain their brand's identity without losing the expected CarPlay functionality. More carmakers, including Honda and Ford, will adopt CarPlay 2.0, albeit it's unclear if their first models will launch this year or in 2025.
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