Innovation3 min(s) read
Apple spent $1,000,000,000 a year for a decade building a product the public will never see
After pouring an eye-watering $10 billion into a secretive project over the course of a decade, Apple has officially pulled the plug on a product the public will now never see.
The company remains one of the most powerful brands in the world, so closely tied to modern technology that for many consumers, it defines it.
But even the biggest players aren’t immune to setbacks.
$10 Billion Spent
Behind the scenes, while dominating the smartphone market, Apple was quietly trying to break into a completely new market.
The project, internally known as Project Titan and led by CEO Tim Cook, involved around 2,000 employees working under a division referred to as the Special Projects Group, per BBC News.
It was reported that the tech giant was developing a fully autonomous electric vehicle - one rumored at one stage to have no steering wheel or pedals.
Initially, the goal was to rival Elon Musk’s Tesla with an electric car. Then the focus pivoted to a fully self-driving vehicle. Later, it swung back toward building a more traditional electric vehicle to compete with Tesla once again.
Ultimately, after 10 years and roughly $1 billion per year in spending, Apple scrapped the entire project in early 2024.
2,000 Employees Impacted
When the cancellation was announced internally, around 2,000 employees were informed that the project was being discontinued.
It was reported that many of the team members were moved into Apple’s artificial intelligence division. However, about 600 employees involved in the car initiative were left without a job.
Industry analysts believe shifting market conditions were a key factor behind Apple’s decision to shut the project down.
Demand for electric vehicles has cooled in recent months as high borrowing costs have curbed consumer spending, while increased competition has made the sector even tougher to crack.
“The market demand for EVs is not there and AI is where all the action is,” Ray Wang, founder and chief executive of Silicon Valley-based consultancy Constellation Research, told the BBC. “This is a smart and long awaited decision.”
Still, despite the staggering $10 billion loss, social media users showed little sympathy. One person said: "So we have been paying premium prices to finance a failed project," while another joked: "Did they plan on calling it the Siri wheel."
A third suggested the cancellation was a "smart move," adding that the car would’ve been "overheating every f**n time".