Apple (AAPL) shareholders may appreciate the mantra that less is more. Bloomberg reported that Apple is reportedly canceling work on its electric vehicle developments. The firm dodged severe losses by keeping the EV project in the development phase.
In its last quarter, Tesla (TSLA) posted weakening profit margins amid severe price slashing. Its competitors are burning money too fast to survive. Apple’s pivot out of EVs will have an impact on its 2,000 employees involved in Project Titan. The company will reallocate those staff to the Machine Learning and artificial intelligence strategy unit.
Following Meta
When Meta Platforms (META) traded at around $100 on heightened worries of its money-losing metaverse project, the firm eventually pivoted. Today, it is investing heavily in its AI projects. Helped by growing advertising revenue, Meta’s AI initiatives have strong prospects. Apple needs to update its platform and offering with AI. Otherwise, related Meta Platforms sites like Facebook and Instagram will take Apple’s audience.
Apple may find a niche in the EV entertainment segment. Instead of offering a full vehicle, the firm may establish its position in the infotainment and software aspect of electric vehicles. That would widen Apple’s ecosystem beyond just smartphone and tablet devices.
