Apple gave up making cars, looking back on the road to making cars, how will Huawei and Xiaomi rise?
Recently, it was reported that Apple has decided to cancel its decade-long, multi-billion dollar electric car project, which means that one of the most ambitious projects in Apple's history is coming to an end. Instead, the nearly 2,000 employees of the Apple Car project will be transferred to the AI department to focus on research and development of generative AI. As soon as the news broke, it sparked heated discussions among the industry and netizens, with many people shocked and regretful, and some people thought that Apple's move was reasonable. So, why would Apple give up building cars?After Apple gave up building cars, can China's new auto production forces seize the opportunity to become a frontrunner in the field of electric vehicles?This article will provide an in-depth analysis of this topic from multiple perspectives.
The bumpy experience of making an Apple car.
Apple's car-building program dates back to 2014, when it launched a codename called"Titans"The aim was to create a fully autonomous electric vehicle with a limousine-style interior and voice navigation. Apple has assembled a team of 5,000 employees, including top talent from automotive giants like Tesla, Mercedes-Benz, and Ford. Apple has also filed a number of automobile-related patents in the U.S. and China, showing its ambition and determination to build cars.
However, Apple's road to building a car has not been easy, and its main challenges lie in the uncertainty of its product roadmap and self-driving technology. Apple's original idea was to build a fully self-driving car without a steering wheel or pedals, but the project faced significant technical and regulatory challenges. There are also divisions within Apple, with some advocating semi-autonomous driving first and others fully autonomous driving first, which has led to unclear strategic direction and chaotic team management. Apple also considered working with other automakers, but failed to find a suitable partner. As a result, the progress of the Apple car has been delayed again and again, starting in 2019, to the end of 2026, and then to the most recent 2028, the launch date of the Apple car has been constantly changing, and the level of autonomous driving has also been reduced from level 4 to level 2+.
Eventually, Apple announced its decision to cancel its car-building plan in February 2024, ending the long-time, high-investment, low-return project. Apple executives say it's a difficult but necessary decision because Apple needs to focus its resources and efforts on more promising areas such as artificial intelligence. Most of the employees of the Apple Car project will be transferred to the artificial intelligence department to participate in the development of generative AI, which is one of Apple's main directions in the future. Generative AI is a type of artificial intelligence technology that can automatically generate various content such as text, images, audio, and ** based on input data. Apple wants to provide users with more creative and personalized services through generative AI, such as writing, painting, film and television, and more.
The reason why Apple gave up making cars.
The reasons why Apple gave up making cars can be analyzed from several angles. The first is the change in the market. In recent years, the electric vehicle market has become increasingly competitive, product profits have been declining, and consumer needs have become increasingly diversified. Especially in China, the sales and market share of electric vehicles are growing rapidly, and many new car manufacturers have emerged, such as Xiaomi, Huawei, NIO, Li and Xpeng. These businesses not only have advanced technology and innovative models, but also have a large user base and loyal fan base. These new forces in the automotive field are a big challenge for Apple's car-making business, and if Apple wants to gain a foothold in this market, it will have to bear more costs and time, and face greater risks and uncertainties. Apple may find that such investments and returns are not commensurate with its highly profitable business model.
The second is the technical difficulty. The biggest obstacle to Apple's car building is self-driving technology. In terms of the integration of software and hardware, Apple has always had the advantage of being able to provide a high-quality user experience. But in the automotive sector, Apple does not have much experience and advantages, and the complexity and safety of cars are much higher than those of mobile phones and computers. If Apple wants to build a fully autonomous car, it needs to solve a series of technical difficulties such as sensors, radars, cameras, maps, algorithms, chips, etc., and also consider the impact of regulations, roads, environment, and human factors. These problems cannot be solved in a year or two and require a lot of data and testing. In this regard, Apple is clearly lagging behind companies such as Tesla and Google, and even less than China's new car-making forces, which have more vehicles, data and scenarios in the development and application of autonomous driving. Apple may have realized that the threshold for autonomous driving technology is too high to lead and subvert, so it chose to give up.
It is also a strategic adjustment. Apple no longer makes cars, which is also a change in its strategic positioning. Apple's core business remains iPhone, iPad, Mac, and other devices, as well as related services and software. These businesses bring stable revenue and profits to Apple, and are also the foundation of Apple's brand image and user loyalty. In areas such as 5G, AR, VR, and artificial intelligence, Apple still has a lot of room for innovation and development potential. Apple may think that instead of distracting its efforts on high-risk, low-reward projects that are not related to its core business, it is better to focus its resources and energy on what it is good at, do a good job of products and services, and provide users with a better experience and value. Apple's strategic adjustment also reflects its understanding and choice of the future, and Apple believes that artificial intelligence is an important direction in the future, more important than electric vehicles.
After Apple gives up making cars, can China's new car-making forces take over the baton?
The news of Apple's abandonment of car manufacturing has also attracted the attention and reaction of new forces in China's automotive industry. Opinions and comments on Apple's decision are mixed. Some people believe that Apple's abandonment of car manufacturing is an affirmation and encouragement of new forces in China's automotive industry, as well as a challenge and opportunity for the electric vehicle market. Some people also believe that Apple's abandonment of building cars is a warning and lesson to its dream of building cars, as well as a test and strengthening of its ability to build cars. So, after Apple abandons making cars, can China's new car-making forces take its place and become the frontrunner in the field of electric vehicles?
First of all, let's take a look at the representatives of the new forces in the Chinese automotive industry - Xiaomi and Huawei. Xiaomi and Huawei are both Chinese tech giants and rivals to Apple. They all have strong strength and influence in the field of smartphones, and have their own advantages in chips and software. They also have a different philosophy from Apple. Xiaomi's car-making philosophy is:"Use Internet thinking to create the best smart electric vehicles"。Xiaomi's goal of building a car is:"Build the world's most cost-effective smart electric vehicle"。Xiaomi's car-making strategy is:"User-centered, based on the Internet ecosystem, and open and cooperative as the medium"。Xiaomi's car-making progress is also very rapid. Xiaomi created the Xiaomi Auto Company, invested 10 billion yuan, and hired more than 2,000 workers, including senior talents from Tesla, BMW, Audi and other car companies. Xiaomi has also established partnerships with Changan Automobile, Huawei, Nvidia and others to jointly develop the hardware, software, chips and other necessary technologies for the car. Xiaomi hopes to launch its first Xiaomi car in the second half of 2024, priced between Rs 200,000 and Rs 300,000, targeting the mid-to-high-end segment.
Huawei's car-making philosophy is:"Apply ICT thinking to build the best smart electric vehicles"。Huawei's goal is:"Building the world's most innovative smart electric vehicle"。Huawei's car-making strategy is:"Take technology as the core, ecology as the foundation, and cooperation as the means"。Huawei's progress in building cars is also very steady. Huawei has established the Huawei Intelligent Vehicle Solution Department, invested 5 billion yuan, and hired more than 1,000 employees, including senior talents from Tesla, BMW, Mercedes-Benz, and other automotive companies. Huawei has also established partnerships with automakers such as BAIC, Great Wall, and Geely to provide them with smart car solutions such as automotive chips, software, and cloud services.
Both Xiaomi and Huawei have demonstrated their ambition and strength, and both have been recognized and supported by the market and users. In addition, both EV manufacturers have their own strengths and characteristics. Xiaomi's strength lies in its experience and resources in the Internet field, as well as its advantages in terms of users and ecology. Xiaomi's car manufacturing is characterized by outstanding cost performance and innovation. Huawei's car manufacturing is characterized by its ICT technology and resources, as well as its advantages in safety and reliability. Huawei's car manufacturing is characterized by innovation and disruption. Both Xiaomi and Huawei's automotive manufacturing have great potential and prospects, but they are also facing great challenges and pressures. Both automakers need to look globally and move forward in terms of products, technologies, brands, channels, and services in order to effectively compete and cooperate with auto giants such as Tesla and Volkswagen in the electric vehicle market.
In addition to Xiaomi and Huawei, there are many representatives of new forces in China's automotive industry, such as NIO, Li Auto and Xpeng Motors. These are start-ups that are building cars and are leaders in the field of electric vehicles. Their car-building philosophy is:"Build the best smart electric car with intelligent thinking"。Their goal is:"Create the world's most user-friendly smart electric vehicle"。Their car-building strategy is:"User-centric, service-based, community-driven"。They are also making rapid progress in building cars. They have launched a series of smart electric vehicles priced between 200,000 and 400,000 yuan, mainly for the mid-to-high-end market. Their cars are all high-performance, high-quality, intelligent, and safe, and they also offer a variety of services and communities that provide users with a lifestyle beyond driving. Their cars have also been recognized and appreciated by the market and users, and their sales and reputation have continued to grow. Its car construction also has its own advantages and characteristics. Cuckoo's strengths are innovation and leadership in battery swapping and battery rental, as well as in user service and community. The characteristics of Cuckoo's car building are to highlight user experience and loyalty. The ideal car building is characterized by its innovation and leadership in hybrid and intelligent driving, as well as its advantages in user feedback and iteration. Li Auto's car-making characteristics lie in its outstanding user satisfaction and user recommendation. Xpeng's vehicle manufacturing is characterized by innovation and leadership in intelligent driving and intelligent connectivity, as well as advantages in user data and analytics. Xpeng Motors' car-making is characterized by highlighting user enjoyment and user participation. Both automakers have great potential and prospects, but both face enormous challenges and pressures. Their automobile production must be effectively controlled and optimized in terms of scale, cost, efficiency, and profit, so as to effectively compete and cooperate with new car-making forces such as Tesla, Xiaomi, and Huawei in the electric vehicle market.
In short, after Apple gives up making cars, can China's new car production force take over the baton and become the leader in the field of electric vehicles?There is no easy answer to this question, and there is no conclusion. China's new EV manufacturers have their own advantages and disadvantages, face their own opportunities and challenges, and need to continue to explore and innovate on their own road, continue to learn and progress, and constantly communicate and interact with the market and users, in order to find their own positioning and direction in the field of electric vehicles, and realize their own values and visions. Apple's abandonment of car manufacturing is both an encouragement and a warning for the new force in China's automotive industry, as well as an opportunity and pressure. They must seize this historical opportunity, show their strength and charm, and make their own contributions and influence on China's auto industry and even the global auto industry.