Chinese auto executives express their shock at Apple’s decision to end its vehicle program after a decade of development
February 28, 2024 at 15:07
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Apple’s plan to enter the automotive scene has been canceled, with Project Titan reportedly shut down and the so-called electric iCar concept buried alongside it. The decision was largely viewed positively by American investors, resulting in a moderate increase in the company’s share prices. However, it has sparked debate among executives leading EV companies in China.
The Asian nation has emerged as a powerhouse in the electric vehicle space, paralleling its dominance in the smartphone industry, which was perceived as a significant threat by executives such as William Li, founder and CEO of Nio. Therefore, it may not be surprising that the decision is being positively received by some executives.
Li Xiang, founder and CEO of Li Auto, took to Weibo on Wednesday to express his approval for Apple’s departure from the automotive industry, as reported by CnEVPost. However, he asserted that Apple’s reported shift in focus to artificial intelligence, rather than concerns about a potential new competitor, was the primary factor that made it a shrewd decision.
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Read: The Apple iCar Is Dead After A Decade Of Development
Li claimed that if Apple could manage to bring AI to the average consumer, it would become a $10 trillion company. If it failed, he suggested that it would be a $1 trillion company, falling from its current valuation of around $2.8 trillion.
Not everyone agrees
However, not all CEOs were as unequivocal about Apple’s decision. Joe Xia, CEO of EV manufacturer Jiyue, acknowledged that AI was the right industry for the tech company to prioritize. However, he pondered whether the outcome might have been different under the late Steve Jobs’ leadership.
“AI is the decisive battle in the endgame of the tech world! But assuming [Steve] Jobs was still at the helm, wouldn’t Apple have handled it differently?” Xia wondered, as translated by CnEVPost. “For example, Apple + Ford, a top-notch AI + advanced manufacturing partnership might be the optimal solution for AI to be used!”
The move also exposed some of the anxiety companies attempting to break into the EV industry are feeling. Lei Jun, the founder and CEO of Xiaomi, expressed shock at the news and defended his own company’s decision to enter the automotive industry.
“We know how difficult it is to build a car, but we still made an unbelievably firm strategic choice 3 years ago and will seriously build a great car for Xiaomi fans!” Lei wrote on Weibo.
Like Apple, Xiaomi is better known as a tech company than an automaker, and is the world’s third-largest smartphone manufacturer by volume. However, a slowing Chinese economy has sparked a price war in the nation just as the company announced its first model, the all-electric SU7 sedan.
Those same factors, in addition to a growing preference for domestic vehicles in China, as well as a slowdown in EV segment growth worldwide, may have contributed to Apple’s decision to cancel the iCar. However, it is not pulling out entirely of the automotive sector, as its infotainment system, CarPlay, seeks to take over more and more of third-party automakers’ vehicle controls.
