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Apple Inc. (AAPL) Pivots on Project Titan, Drops 2017 Ultimatum

apple inc (AAPL) Project Titan

Apple Inc. has  scaled down its plans to build an insanely great iCar after the project had suffered a series of challenges in focus, leadership, and execution. Apple used to be one of the firms working on building the cars of the future. The firm was rumored to be working on a vehicle code named ‘Project Titan’ and there was an endless stream of rumors, leaks, and clues about the car.

Apple however refused to confirm or deny that it was building a car but the opinion was that the Apple car will be a driverless EV with epic features. However, it seems that the firm is giving up on the car project – at least, it won’t build the kind of car that we’ve all expected it to build. It is somewhat hard to pinpoint the exact reasons behind Apple’s decision to scale back its Project Titan plan. Nonetheless, it seems that the iPhone maker is tired of spending money on building the idea of a car.

Apple Inc (NASDAQ:AAPL) Apple Car

Apple is refocusing Project Titan

Apple Inc. has reportedly reorganized its Project Titan team even though the changes are mostly hushed up. The firm has reassigned or let go some of the 1000 people in the team while a sizeable number of those people have left on their own volition. The firm has reportedly told the leadership of the Project Titan team that they must deliver a working prototype of whatever they want to build by late 2017. Their inability to deliver a demo by late 2017 could lead to the total scrapping of the project.

Now, the leadership of Project Titan is taking the path of least resistance and they won’t be working on building a car. Rather, the team will focus on creating a platform for self-driving cars much in the same way that Steve Jobs built iOS for iPhones and  Google built Android for other OEMs. With the new Project Titan car platform, Apple could license its self-driving technology to other carmakers or partner with them to bring self-driving cars to the market.

Of course, Apple could change its mind somewhere down the road and decide to build its own car. The firm prides itself on its skill in merging software and hardware to build insanely great products. Hence, the firm might later change its mind to keep its hardware indoor in order to build a car worthy of the software.

Here’s what experts think about Apple’s focal pivot on Project Titan

In 2015, Apple Inc. was optimistic about Project Titan and its COO, Jeff Williams said, “The car is the ultimate mobile device, isn’t it?”  CEO Tim Cook also noted that the firm must build the iCar because  “at an inflection point for massive change.” However, the dual work of building a car software and hardware at the same time is taking a tool and slowing down the development of the mythical iCar.

One of the workers in the Project Titan unit told Bloomberg that the flop ” “was an incredible failure of leadership,” Eric Paul Dennis, an analyst at the Center for Automotive Research observed that the firm is making a smart decision to pivot even though “For a quality Apple-branded car they could probably get a healthy margin.” He also noted that the firm would rather scrap Project Titan than build a subpar car because  “they probably weren’t willing to compromise on quality issues.”

 

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

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