Our dreams of driving around in an auxiliary-jackless car and having Siri close your windows have been dashed as Bloomberg reports that the “Apple Car” will not come to fruition.
There have been rumours that Apple was rethinking the idea of building their own car, but this seems to seal the deal. Bloomberg notes in an article released today that Apple has “drastically scaled back its automotive ambitions, leading to hundreds of job cuts.” Apparently, the 1,000-person car team has been disbanded, with employees being let go, reassigned or leaving on their own terms.
However, the idea of an Apple-powered car is not out of the question. Bloomberg went on to report that the California-based tech company is now focusing on creating their own autonomous driving system, which they can provide to various vehicle manufacturers. This may be why many were reporting talks between McLaren and Apple not long ago.
One thing worth looking at is how Apple’s stock will react to this information. While it may look bad at first glance, it may actually be better in the long run. Bloomberg notes that carmakers typically work with net margins that are well below 10%, while tech companies, like Apple, have much higher margins. By dropping the Apple Car and focusing primarily on the tech itself, investors may either rest easier with their investments or potential investors might find the new direction easier to invest in.
So, while we won’t being seeing an Apple iCar anytime soon, we still may see an Apple-powered car in the future.
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