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Apple's decision to cancel its electric vehicle project has surprised ambitious new Chinese automakers like Xiaomi, the South China Morning Post reports.

Apple-car-wheel-icon-feature-triad.jpg

Yesterday, Bloomberg's Mark Gurman revealed that after a decade of work and millions of dollars in development costs Apple has canceled its plans to bring an EV to market, moving many of the 2,000 staff working on the project to generative AI instead. The decision has come as a surprise to new tech-focused Chinese EV brands like Xiaomi, Li Auto, and Xpeng, who saw a future Apple car as one of their main rivals.

Xiaomi is one of China's biggest electronics companies and is best known for its line of smartphones. The company unveiled its first EV, the SU7, late last year and it is set to go on sale after further testing. The project required over $1.4 billion in development and over 3,400 engineers.

Founder and chairman Lei Jun today posted on Weibo that he was "very shocked" by the news of Apple's decision to cancel its EV. He added that he "knows deeply how difficult it is to make cars," but Xiaomi has made an "unshakeable strategic choice" to move into EVs. He Xiaopeng, chairman of Chinese EV maker Xpeng, expressed similar disbelief that Apple is abandoning its car plans.

Li Xiang, CEO of Beijing-based EV maker Li Auto, remarked on Weibo that Apple's decision to shift emphasis from EVs to AI was "absolutely right." "AI will become the top-level entrance for all devices, services, applications and transactions, in which Apple should stay on top," he added.

Chinese brands possess a rapidly growing proportion of global EV sales. Last year, China's BYD overtook Tesla as the world's top EV manufacturer.

Article Link: Chinese Automakers Shocked at Apple's Decision to Cancel Car Project
 

one more

macrumors 601
Aug 6, 2015
4,504
5,657
Earth
Why shocked? So they can't steal the design & ip like they steal every other bit of IP from Apple?

Maybe “surprised” would be a better word. They do not need to steal much in this field, as the Chinese practically already dominate the EV market. At least here in Europe the Chinese automakers are perceived as a major threat to both Tesla and European EV makers, as the Chinese can easily undercut both on prices.
 
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deepspacecowboy

Suspended
Jan 1, 2024
193
497
The Apple Car never made sense. Cars are low-margin products, something Apple doesn't do. Cars require a lot of service and support infrastructure, all of which Apple would have either needed to build out or acquire by buying an established car company.

And what was Apple really going to bring to the table? Looking at their other product lines, it's clear that the Apple "secret sauce" isn't nearly the differentiator it was in the past. Other companies have largely caught up with Apple. Android phones easily go toe to toe with the iPhone these days, many offering more compelling features. While Vision Pro is certainly stuffed with all sorts of high end components, it's not that much better than a Quest at 1/7th the price. Apple's home audio products are quite boring and basic compared to Sonos and other more thoughtful and comprehensive home audio solutions.

In many ways Apple is coasting these days. Their OSes, ecosystem, and overall user experience are still arguably better than the competition, but Apple products no longer stand head and shoulders above their competitors. I'm glad they realized the car was a fool's errand and stopped burning cash on something that was sure to be nothing more than a money pit for them.
 

one more

macrumors 601
Aug 6, 2015
4,504
5,657
Earth
The problem with the EV market is that it will be very price-sensitive. Not enough people want $100K cars.

This is true. Whereas the first wave of EVs could benefit from the coolness and novelty factor, justifying their higher costs vs the petrol analogues, nowadays the EV makers are trying to capture the lower segment of the market, aiming for starting prices for new EVs at about 25.000-30.000€.
 
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Surf Monkey

macrumors 603
Oct 3, 2010
5,553
4,129
Portland, OR
The Apple Car never made sense. Cars are low-margin products, something Apple doesn't do. Cars require a lot of service and support infrastructure, all of which Apple would have either needed to build out or acquire by buying an established car company.

And what was Apple really going to bring to the table? Looking at their other product lines, it's clear that the Apple "secret sauce" isn't nearly the differentiator it was in the past. Other companies have largely caught up with Apple. Android phones easily go toe to toe with the iPhone these days, many offering more compelling features. While Vision Pro is certainly stuffed with all sorts of high end components, it's not that much better than a Quest at 1/7th the price. Apple's home audio products are quite boring and basic compared to Sonos and other more thoughtful and comprehensive home audio solutions.

In many ways Apple is coasting these days. Their OSes, ecosystem, and overall user experience are still arguably better than the competition, but Apple products no longer stand head and shoulders above their competitors. I'm glad they realized the car was a fool's errand and stopped burning cash on something that was sure to be nothing more than a money pit for them.

Apple has been coasting since Cook fired Scott Forestall and drove Ive away. It has no hope of a rebound until Cook leaves. He’s Scully 2.0 and the Vision Message Pad proves it.
 

nikhsub1

macrumors 68030
Jun 19, 2007
2,592
2,569
mmmm... jessica.'s beer...
The problem with EVs in general are the batteries, the charge time and the charging infrastructure. We need much better battery tech where cars can go 500+ miles on an 80% charge, charge from almost empty to 80% in 10 mins and WAYYYYYYY more charging infrastructure. For now, EVs are good for large cities, that's really about it IMO.
 

wonderings

macrumors 6502a
Nov 19, 2021
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Maybe Apple just realized they did not have anything new to bring to the game. As we all know Apple did not invent the smart phone, or tablet, among other things. What they did really really well was made them easy and powerful to use. They literally turned the market upside down and had everyone chasing for a long time. With self driving cards and EV's, what is Apple really going to bring to the table that won't get lost in a sea of other super tech laden cars.
 
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thewill586

macrumors member
Feb 18, 2009
51
41
The Chinese will turn the EV market, where they are able to sell, into a price war. EV growth is limited going forward because most drivers don’t have chargers at home and find it a hassle to charge outside the home.
 

Surf Monkey

macrumors 603
Oct 3, 2010
5,553
4,129
Portland, OR
They currently build cars. They are shocked that Apple can't. A company that can't put two ports on an iPad never had any business trying to build a car. Apple never had anything useful to bring to the table.

Sadly, this appears to be true. What Apple would have brought to the table was a comprehensive, ecosystem integrated, software approach to the car experience. But since they jettisoned all their design leads and replaced them with the COO I suppose they don’t really have the capability to do that anymore.
 
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gaximus

macrumors 68020
Oct 11, 2011
2,240
4,375
The problem with EVs in general are the batteries, the charge time and the charging infrastructure. We need much better battery tech where cars can go 500+ miles on an 80% charge, charge from almost empty to 80% in 10 mins and WAYYYYYYY more charging infrastructure. For now, EVs are good for large cities, that's really about it IMO.
The problem with EV is that people still think they are suppose to charge at charging station like they do with gas station. EVs are meant to be charged at home, overnight, then you wakeup with a car fully charged, ready to go with 200+ miles everyday, way more than the average person needs. The Charging infrastructure is only needed for road trips, which are rare for most people. Once people understand that, then EVs will be good for anyone driving less than 200 miles a day.
 

Surf Monkey

macrumors 603
Oct 3, 2010
5,553
4,129
Portland, OR
The problem with EV is that people still think they are suppose to charge at charging station like they do with gas station. EVs are meant to be charged at home, overnight, then you wakeup with a car fully charged, ready to go with 200+ miles everyday, way more than the average person needs. The Charging infrastructure is only needed for road trips, which are rare for most people. Once people understand that, then EVs will be good for anyone driving less than 200 miles a day.

Swapping batteries at a service station when they run down would be a better solution.
 
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