Apple has reportedly given up on plans to produce electric vehicles

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Apple has reportedly scrapped its plans to produce electric vehicles, a decade after the iPhone maker was rumored to be working on the project. The company has never publicly acknowledged the project, which involved about two thousand people, reports BBC.

Many employees from the project will be moved to the iPhone maker's artificial intelligence (AI) division, it has been learned. Bloomberg.

Apple's automotive team was reportedly known as a special projects group as part of its CEO Tim Cook's Project Titan. After spending billions of dollars on research and development, the company was initially rumored to be working on a fully autonomous vehicle without a steering wheel or pedals.

"This is a smart and long-awaited decision. "The market demand for electric vehicles is not big enough, and AI is where all the action is," Ray Wang, founder and chief executive of Silicon Valley-based consultancy Constellation Research, told the BBC.

Apple has been exploring other possibilities beyond phones and computers, including the recently launched Vision Pro virtual reality glasses.

Research firm Counterpoint noted that the decision was made as the market for artificial intelligence in consumer electronics is growing rapidly.

"Preliminary data suggests that shipments of AI phones will exceed 100 million units in 2024," said their senior analyst Ivan Lam.

Counterpoint predicts that number could reach more than 500 million by 2027.

Demand for electric vehicles has slowed in recent months as borrowing costs remain high, making the market increasingly competitive as major players scramble to win customers.

In recent months, US auto industry giants Ford and General Motors have delayed plans to expand production of electric vehicles. Last week, electric truck maker Rivian announced it would cut its workforce by 10% and said it did not expect production to grow this year. In January, Tesla warned that its sales growth would be weaker this year than in 2023.

The company, which is led by multi-billionaire Elon Musk, has been cutting prices in key markets around the world, including Europe and China, as it faces tough competition from Chinese rivals such as BJD.

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