$AAPL is killing Project Titan (reported by Bloomberg's Gurman) to focus on AI. I'm shocked.
This ends almost a decade of investment into finding a way into a massive addressable market.
While most investors were skeptical that Apple would actually coming out with a car, the ending of the project ends optionality around a project that would have shifted Apple's top line growth from around 5% to 15% plus.
If Apple would have captured 10% of the auto market, that would have added about $250B in revenue a year, or increased their overall business by 60%.
While for Apple automotive is a bigger long-term revenue opportunity than generative AI, the decision to move on from Titan does have a benefit because it will increase the companies urgency to do something profound in generative AI.
Generative AI for $AAPL will likely come in the form of personalized AI (previewed in June), something that Apple is uniquely positioned to capitalize on given their brand in privacy and security.
This is a positive for $TSLA. I've long believed Apple was Tesla's biggest long-term US competitor.
Modify on 2024-02-28 12:07
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