Why Apple’s switch of focus from self-driving cars to AI makes sense
The news that Apple has shelved its autonomous car plan–Project Titan–has sent ripples across technology and automotive industries. The company has pumped untold resources into Titan for almost a decade. It is now apparently relocating some personnel in the Titan team to artificial intelligence research and development and probably letting the others go.
Specific reasons for the strategic switch remain unclear, but some inferences can be made. On the face of it, the foray into Titan made sense. Apple has made its reputation and earned its profits by single-mindedly following through with a strategy of developing integrated, consumer-facing devices.
Products like the Mac, iPad, iPhone, Apple Watch, and even the iPod have a design principle in common: They are built around tight integration of software and hardware, and superglued to the iOS ecosystem. This means that besides the fact that the devices are individually best-in-class (or close to it), they secure high margins for the company. Apple has tight control over the hardware supply chain, and the smooth interoperability of the devices creates a very loyal following.
If you own an iPhone for example, and you’re in the market for a laptop or desktop, it’s a no-brainer to opt for a Mac. The operating system will be familiar and easy to navigate, and your data and content can be smoothly transferred between devices and stored on the cloud. Moreover, every Apple user shops for new apps, accessories, etc.
on the Apple iStore where again, interoperability is a plus. To move from consumer electronics to a self-driving electric car may seem ambitious. But any autonomous vehicle is essentially about synthesizing software with hardware.
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