Ten years after it was first claimed that the maker of the iPhone was working on the project, Apple is reported to have scrapped its plan of making electric cars (EVs).
The project, which employs nearly two thousand people, has never been acknowledged by the company in public.
According to Bloomberg News, many project workers will be transferred to the iPhone maker's artificial intelligence (AI) section.
Apple's automobile team was reportedly named the Special Projects Group as part of CEO Tim Cook's Project Titan.
The company was first reported to be working on a fully autonomous car without a steering wheel or pedals while it spent billions of dollars on research and development. However, the team was understood to still be years away from producing a vehicle.
"This is a smart and long-awaited decision," Ray Wang, founder and chief executive of Silicon Valley-based consultancy Constellation Research stated. "The market demand for EVs is not there and AI is where all the action is.”
Apple has been looking at fresh opportunities beyond the iPhone and computers, such as its recently released Vision Pro virtual reality gear.
Demand for EVs has slowed in recent months as borrowing prices remain high, making the market more competitive as big firms compete to acquire customers.
In recent months, US automakers Ford and General Motors have postponed plans to increase EV output.
Rivian, the developer of electric trucks, announced last week that it plans to reduce its personnel by 10% and intends to keep production the same this year.
In January, Tesla warned that its sales growth would be slower this year than in 2023.
The company, led by multibillionaire Elon Musk, has been lowering pricing in major areas across the world, including Europe and China, as it faces stiff competition from Chinese rivals like BYD.
Emojis of a salute and a cigarette were used by Mr. Musk to respond to a story about the Apple project's demise on the social media platform X.