Apple's decision to shut down its long-in-development Apple car project was disappointing but not surprising. The company's board was concerned about the continuous spending on a project that may never be realized. This move allowed Apple to redirect resources towards new generative AI features, which positively impacted the company's stock price. Reports suggest that Apple is considering a deal with Google to bring Gemini AI features to the iPhone.
However, relying on partnerships and acquisitions may not be the best strategy for Apple to compete in the AI race. The company needs to focus on innovation rather than buying its way into the market. There are rumors that Apple has big plans for iOS 18 and a new version of Siri, but it remains to be seen if these will truly break new ground in generative AI or just retread existing territory. It is important for Apple to prioritize consumers and leverage AI in unique ways that embody its core principles.
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The publication stated that the company enhanced its “compute margin,” an internal metric representing the portion of revenue remaining after covering the costs of operating models for paying users of its corporate and consumer products.
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