Chinese Automakers Shocked at Apple's Decision to Cancel Car Project

Apple's decision to cancel its electric vehicle project has surprised ambitious new Chinese automakers like Xiaomi, the South China Morning Post reports.

Apple car wheel icon feature triad
Yesterday, Bloomberg's Mark Gurman revealed that after a decade of work and millions of dollars in development costs Apple has canceled its plans to bring an EV to market, moving many of the 2,000 staff working on the project to generative AI instead. The decision has come as a surprise to new tech-focused Chinese EV brands like Xiaomi, Li Auto, and Xpeng, who saw a future Apple car as one of their main rivals.

Xiaomi is one of China's biggest electronics companies and is best known for its line of smartphones. The company unveiled its first EV, the SU7, late last year and it is set to go on sale after further testing. The project required over $1.4 billion in development and over 3,400 engineers.

Founder and chairman Lei Jun today posted on Weibo that he was "very shocked" by the news of Apple's decision to cancel its EV. He added that he "knows deeply how difficult it is to make cars," but Xiaomi has made an "unshakeable strategic choice" to move into EVs. He Xiaopeng, chairman of Chinese EV maker Xpeng, expressed similar disbelief that Apple is abandoning its car plans.

Li Xiang, CEO of Beijing-based EV maker Li Auto, remarked on Weibo that Apple's decision to shift emphasis from EVs to AI was "absolutely right." "AI will become the top-level entrance for all devices, services, applications and transactions, in which Apple should stay on top," he added.

Chinese brands possess a rapidly growing proportion of global EV sales. Last year, China's BYD overtook Tesla as the world's top EV manufacturer.

Popular Stories

Apple AI Command Center Concept Mock 3

Apple Expected to Launch This All-New Device Next Year

Wednesday November 27, 2024 1:05 pm PST by
Apple is expected to kick off 2025 by launching an all-new smart home hub, also referred to as a "command center," as early as March. The hub is expected to feature around a six-inch display that can be attached to a tabletop base with a speaker, or mounted on a wall. The device is said to run a new "homeOS" operating system with a customizable widget-focused home screen, and it is expected...
iOS 18

Here Are Apple's Full Release Notes for iOS 18.2

Thursday December 5, 2024 11:48 am PST by
Apple seeded the release candidate version of iOS 18.2 today, which means it's going to see a public launch imminently. Release candidates represent the final version of new software that will be provided to the public should no last minute bugs be found, and Apple includes release notes with the RC launch. The iOS 18.2 release notes provide a look at all of the new features that are coming...
Whatsapp Feature

WhatsApp to Drop Support for These iPhones Starting May 2025

Monday December 2, 2024 2:57 am PST by
WhatsApp is set to end support for iOS versions older than iOS 15.1 from May next year, removing the chat platform's compatibility with several iPhone models in the process. From May 5, 2025, WhatsApp will no longer be compatible with iPhone 5s, iPhone 6, and iPhone 6 Plus models. Users with those devices won't be able to access the encrypted chat service after the specified date unless they ...
Flip iPhone Thumb 1

Apple's 2026 Foldable iPhone Could Reinvigorate Stalling Market

Monday December 2, 2024 4:04 pm PST by
The foldable smartphone market has stalled with customer interest in foldables waning, but that could change when Apple debuts a foldable iPhone, according to display analyst Ross Young. In a report on the current foldable smartphone market, Young says that Apple is expected to "enter the foldable market" in the second half of 2026. Apple's "dominant position in flagship smartphones" could...
airpods pro 2 gradient

AirPods Pro 3 Expected Next Year: Here's What We Know

Thursday November 28, 2024 3:30 am PST by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch sometime in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as...
iPhone 17 Pro Dual Tone Rectangle Feature 1

iPhone 17 Pro Already Rumored to Have These 8 New Features

Wednesday November 27, 2024 12:19 pm PST by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch for 10 more months, there are already plenty of rumors about the devices. An imaginative iPhone 17 Pro concept based on rumors Below, we recap key changes rumored for the iPhone 17 Pro models so far: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro ...

Top Rated Comments

Naraxus Avatar
10 months ago
Why shocked? So they can't steal the design & ip like they steal every other bit of IP from Apple?
Score: 49 Votes (Like | Disagree)
McWetty Avatar
10 months ago
“Shocked”… haha. Because you know, EV.

I’ll see myself out.
Score: 38 Votes (Like | Disagree)
mapsdotapp Avatar
10 months ago
Apple faked them out with rumors and now they’re left holding the bag on a dead-end product line that a tech company has no business in pursuing. They got Cooked.
Score: 21 Votes (Like | Disagree)
Armada2 Avatar
10 months ago

Why shocked? So they can't steal the design & ip like they steal every other bit of IP from Apple?
Was about to say that! "Shocked" = 1 less product to copy ?
Score: 17 Votes (Like | Disagree)
erikkfi Avatar
10 months ago
I'm disappointed too. I don't really understand why the car has to be autonomous in order for Apple to make it. Another American EV from a company with a CEO who isn't a lunatic jerk would be very welcome.
Score: 16 Votes (Like | Disagree)
deepspacecowboy Avatar
10 months ago
The Apple Car never made sense. Cars are low-margin products, something Apple doesn't do. Cars require a lot of service and support infrastructure, all of which Apple would have either needed to build out or acquire by buying an established car company.

And what was Apple really going to bring to the table? Looking at their other product lines, it's clear that the Apple "secret sauce" isn't nearly the differentiator it was in the past. Other companies have largely caught up with Apple. Android phones easily go toe to toe with the iPhone these days, many offering more compelling features. While Vision Pro is certainly stuffed with all sorts of high end components, it's not that much better than a Quest at 1/7th the price. Apple's home audio products are quite boring and basic compared to Sonos and other more thoughtful and comprehensive home audio solutions.

In many ways Apple is coasting these days. Their OSes, ecosystem, and overall user experience are still arguably better than the competition, but Apple products no longer stand head and shoulders above their competitors. I'm glad they realized the car was a fool's errand and stopped burning cash on something that was sure to be nothing more than a money pit for them.
Score: 16 Votes (Like | Disagree)