Apple abandoned the production of electric vehicles and displays, but decided to develop home robots

Apple has laid off more than 600 employees in California due to the termination of projects to produce electric vehicles and displays for smart watches. The company's new strategic move has sparked increased interest in the technology industry as it focuses on home robotics.

What happened

In late February, Apple began winding down its electric vehicle and smartwatch display initiatives, which were seen as large-scale efforts to advance the company's technology or expand into new areas.

Project Titan, which focused on automobile production , was canceled due to indecision among executives regarding its direction and cost concerns. The Apple car was still years away from being released, and implementing working technology became a major challenge.

“The tech giant is following a trend where investor enthusiasm for investing in electric vehicles is waning amid the craze for all things artificial intelligence.”

Suzanne Streeter, Head of Finance at Hargreaves Lansdown

A program to produce displays for smart watches was closed due to problems with design, suppliers and costs. The project was part of Apple's broader push to develop technology in-house. While the company already customizes displays in its products, they are largely based on designs from partners like LG and Samsung.

Apple had other problematic projects that it abandoned.

How project cancellations affected employees and the company

Based on the decisions to terminate projects, Apple laid off more than 600 employees in California. According to reports, 371 employees were laid off at the company's automotive headquarters, while the rest were working at subsidiaries developing next-generation screens.

In some cases, members of the Apple Car team were transferred to other teams to work on artificial intelligence or personal robotics.

Although the creation of cars did not generate revenue, it served as the basis for other Apple initiatives. The neural engine in iPhone and Mac was originally developed for cars. This program also laid the groundwork for Vision Pro, as Apple explored the use of virtual reality while driving.

In what direction will Apple develop?

Despite the criticism , Apple is looking for new opportunities for development. The company is now focused on home robotics . The research is being conducted in Apple's hardware and artificial intelligence division, led by John Giannandrea.

“We are looking for ML and robotics researchers and engineers to help us research, define and develop complex intelligent robotic systems.”

Excerpt from Apple job vacancy

Given the proximity to home developments, experts believe that the company is working on its own version of Amazon Astro. Additionally, Apple has been involved in the production of robotic arms such as Daisy, which extract key metals from discarded iPhones.

With the help of robotics, Apple can gain a strong foothold in consumers' homes and benefit from advances in artificial intelligence.