Monday, October 17, 2016

"Apple Might Not Be Building a Car After All" (AAPL)

From Fortune:

Apparently the iPhone maker is taking a new direction.

Apple’s automotive plans have changed, and the iPhone maker is no longer planning to make its car, according to a new report.

Instead, Apple will focus on developing a self-driving car system that could be licensed to multiple car makers, Bloomberg reported on Monday, citing anonymous sources. The shift followed the departure of Steve Zadesky, who was overseeing the effort known as Project Titan, in early 2016, the report added.

Multiple reports have suggested Apple has been secretly exploring entering the automotive market for at least several years and built up Project Titan with a staff of over 1,000 in a headquarters a few miles away from its main campus in Cupertino, Calif. But lately, the news from the car unit has been mixed with reports of layoffs, delays, and management turnover.

Many giants in the tech industry have been exploring making electric cars ever since Tesla demonstrated the appeal. Google and Uber, among others, have been publicly experimenting with self-driving and electric cars in various ways.

But the car industry is notoriously capital intensive and low margin, making it tough for the new players to break into the market. Tesla has still never turned a profit....MORE