What happens when the most forward-thinking company in the world steps into the unknown?
For Apple, which redefined the technology world with its beautiful products, electric cars would be next on the agenda. But far from revolutionizing transportation, the prototype, codenamed “Titan”, was a cautionary tale of delayed start-ups, competing visions and high prices.
For nearly 10 years, billions of dollars and thousands of employees were involved in Apple’s ambitious project of developing an electric vehicle that would rival Tesla or a self-driving car that could beat Waymo. Yet with too many pitfalls, the big-bang project fell quietly, and people kept asking
A Vision Divided
The project for Apple’s car began with promise in 2014, as the world of autonomous vehicles was buzzing in Silicon Valley. Google had already tested automated vehicles, and Tesla was setting a trend in electric vehicles. Never to be left behind, Apple’s CEO Tim Cook backed Project Titan as Apple’s entry point into the $2 trillion transportation market.
Yet, from the outset, the project suffused with competing visions. The founder Steve Zadesky wanted to develop an electric car that would be able to compete with Tesla. Instead, Apple’s design legend Jony Ive envisioned a self-driving car that would transform the experience of driving. This conflict strained the team, which set the stage for future problems.
A Titanic Undertaking
On the inside, some of the workers called Project Titan the “Titanic disaster” and it stuck. The project ran into many challenges – including high turnover, and repeated direction changes. The project’s four leaders, each with a different vision, ran the project for the entire course of its existence
- Steve Zadesky (2014-2016): Focused on a traditional electric vehicle.
- Bob Mansfield (2016-2020): Pivoted to autonomous driving technology.
- John Giannandrea (2020-2023): Emphasized AI and automation.
- Kevin Lynch (2023): Attempted to reconcile the earlier visions.
Every new leader meant a change of direction and employees were forced to adapt. By 2016, Zadesky was gone, and Mansfield had given up on the car and turned his attention to building self-driving software. This change was the project’s first major disappointment.
The Challenges of Innovation
Even for Apple’s resources, creating an electric car from scratch was daunting. Writing code and algorithms for autonomous vehicles was especially challenging. While Tesla and Google’s Waymo had decades of experience, and huge investments in this space, Apple was embarking on a blank slate.
Compounding the issue, Apple’s internal culture, geared to consumer electronics, wasn’t really conducive to automotive. In contrast to designing a phone or a laptop, building a car involves huge regulatory obstacles, supply chains and safety issues. These impeded development and drove up costs.
The Cost of Ambition
Apple reportedly invested more than $10 billion in Project Titan by the time the plan was abandoned. The price tag was, in part, because Apple’s hiring ad campaign was so aggressive. The company drew in top talent from NASA, Tesla and Porsche and employed more than 2,000 engineers. Designers envisioned exotic versions of European minivans, and Apple even started to drive sensor-filled Lexus SUVs in California.
But these endeavours never yielded a commercially viable product. Producing a car in Apple’s price range was estimated to cost well over $100,000 — prohibitively expensive for the majority of consumers. Furthermore, margins in the auto business were negligible compared to the lucrative smartphone market where Apple was already a dominant force.
Missed Opportunities
Apple once considered buying Tesla, reports indicate, but no talks ensued. Rather, the company built their own vehicle, perhaps in an overly ambitious way. Trying to compete with Tesla, already a huge player with decades of experience, was harder than it had been expected.
Despite Apple getting permits to use self-driving cars by 2018, there had been little movement. Apple’s perfectionist brand that had led to its consumer electronics success was seen by critics as a liability in the fast-paced automotive industry.
A Legacy of Lessons
Project Titan didn’t end up making a car, but it left behind an intellectual legacy. Apple plans to utilize the technology developed during the project for future projects. For instance:
- Artificial Intelligence: Engineers who make automation software now contribute to AI based products like AR/Robotics.
- Automation: Data from the car project is being leveraged to help develop other products, such as upcoming AirPods and smart-home systems.
Such efforts indicate that even if the car never happened, the investment in Project Titan could pay off in surprising ways.
What Went Wrong? Key Takeaways
Conflicting leadership priorities undermined the project’s ambition. An all-encompassing, coordinated vision might have reduced the need for judgment and investment.
Cultural Misalignment
Apple’s experience with consumer electronics didn’t necessarily translate easily to the automobile industry. The firm underestimated the complexity of the market.
Technical Challenges
Writing these algorithms and making them available for a reliable, safe vehicle proved to be harder than I had thought.
High Costs and Low Margins
The $100,000 price tag for the car was inexcusable, and margins in the automotive sector were substantially smaller than in Apple’s core business.
Missed Timing
Apple came on the scene decades after Tesla and Google, which meant it was constantly playing catch-up in a very dynamic market.
The Road Ahead for Apple
Now that Apple is turning its attention to AI and automation, it’s no surprise that Project Titan will serve as a guide to its future. The era of the Apple car may be over, but its insights might propel advancements in other fields, including smart homes and augmented reality.
Project Titan is in many ways an exploration of the dangers of starting out in a new field. For a brand that’s been equated with achievement, the failure of its car program proves that not all titans can make it. Yet, as history has demonstrated, Apple will always be able to take the lessons of its mistakes and grow from them.
