Has Apple, Inc. (NASDAQ:AAPL) Apple car ambitions run too fast? Or is the tech giant simply taking a temporary detour on another path? Just as important, how will this shift in strategy impact AAPL stock?
The Cupertino-based iPhone maker has yet to state publicly that it is (or has been) working on an autonomous car, but that has never stopped pundits from trying to connect the dots. Meanwhile, AAPL stock has underperformed as investors await confirmation that Apple can return to growth and command a higher multiple.
Depending on who you want to believe, the so-called “Project Titan” is (has been) Apple’s secret self-driving car program. And Apple has, in fact, made several hires affirming its interest in building an Apple Car, including allegations it poached engineers from Tesla Motors Inc (NASDAQ:TSLA).
But with the New York Post now reporting that there are layoffs at “Project Titan,” is it possible that a rumor surrounding an Apple Car that Apple has never confirmed will turn out to be nothing at all?
Since Bob Mansfield has taken over the Apple Car project, the focus has changed from building an entire car, to focusing on developing self-driving car tech, according to Bloomberg.
That’s not what AAPL stock needs, however.
It would seem Mansfield doesn’t envision the Apple Car itself to be a profitable enough venture to take on. The Tesla blueprint hasn’t worked exactly well, if that’s the model being followed. And let’s not forget the struggles Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) have experienced when attempting to grow their profit margins.
Instead, Apple seemingly wants to be the technology that drives other car brands. Imagine “Car OS” being updated at your vehicle’s service department.
Instead of risking an Apple Car failure, Apple is betting there will be enough profits in being the brains of the car.
As of this writing, Richard Saintvilus did not hold a position in any of the aforementioned securities.
