Prof G Markets: What Killed the Apple Car? Shein Eyes a London IPO, and The Granolas

AI Focus

Scott Galloway explains Apple's strategic pivot from developing an electric vehicle to focusing on artificial intelligence. He acknowledges that while the Apple car was initially a promising venture, the evolving market dynamics necessitated a change in direction. Galloway highlights that the shift to AI represents a more lucrative opportunity for Apple, aligning better with its strengths and market position 1.

Strategy and vision are meant to be unifying. They're meant to be guideposts, right? They're meant to illuminate a path. They're not a suicide pact.

--- Scott Galloway

This decision reflects Apple's adaptability in responding to market changes and its commitment to pursuing high-impact innovations 2.

   

Market Dynamics

The automotive market's challenges significantly influenced Apple's decision to abandon its car project. Galloway notes that the market overestimated the demand for electric vehicles, leading to a decline in used EV prices and increased competition from companies like BYD 1. He points out that Tesla, despite its large market cap, is facing margin pressures, while Toyota's hybrid strategy is now seen as visionary.

The market vastly overestimated the demand and how quickly the transition to EV's would be.

--- Scott Galloway

These factors, combined with the capital-intensive nature of the auto industry, made the AI sector a more attractive focus for Apple 2.