How long has it been since you last heard the name of Steve Jobs? Even at tech product launches in China, hardly anyone wears jeans anymore.
There was a time when high-tech companies like Apple were seen as leaders and reference points in the tech industry, with every move they made being imitated. The early days of the internet, mobile internet, and new energy vehicles all had their so-called domestic and foreign versions.
If Apple could successfully cross over into the automotive manufacturing industry and launch a disruptive product, it would undoubtedly provide other tech companies with a referenceable model and market confidence. However, the cancellation of Apple's car-making plan means losing such a potential pioneer role, leaving other tech companies wishing to enter the field without a direct benchmark.
Apple's decision may prompt other tech companies to reassess their investment and strategy in the electric vehicle industry. While they may have been expecting to see how Apple would tackle a range of complex issues from technology R&D to supply chain management and market positioning, these companies now need to explore independently and take on strategic risks.
Not only has Apple's abandonment of car manufacturing left followers without a reference point, but various signs indicate that the tech industry's reference points seem to be gradually disappearing.
Today, Apple announced the abandonment of its electric car development plan, with the team of 2000 being disbanded and gradually transitioning to the artificial intelligence research department or facing layoffs.
Apple has always been a "mentor" in the industry, with countless followers, but now that the "teacher" has withdrawn from the automotive field, what choices do others have? Faced with the demise of giants like Tesla and other fallen pioneers, are the companies determined to build cars wavering, standing in the wind feeling disheveled?
In recent years, Apple's "mentor" effect seems to be less pronounced, and this situation is not limited to Apple alone. So, what happens when the tech industry loses its "reference point"?
Apple's abandonment of car-making has garnered mixed reactions: some are shocked, some are worried.
Xiaopeng Motors CEO He Xiaopeng shared a relevant article on his WeChat Moments today, stating: "We discussed last year that all new players would make their moves by 2024, except for Apple. The period after 2024 will be a decade of elimination matches and all-star games. But unexpectedly, even Apple made its move in 2024."
CEO Li Xiang of Ideal Cars posted on Weibo saying that Apple's decision to abandon car manufacturing and focus on artificial intelligence (AI) is absolutely the right strategic move, and the timing is appropriate.
Li Xiang's analysis is as follows:
Firstly, if Apple succeeds in consumer-oriented AI, it will become a $10 trillion company; if AI fails, it will still be a $1 trillion company. AI is poised to become the top-level gateway for all devices, services, applications, and transactions, making it a crucial battleground for Apple.
Secondly, even if Apple succeeds in the automotive sector, which could add $2 trillion to its market value, the necessary condition for the success of cars remains AI. The electrification of cars represents the first half of the game; AI is the final showdown.
Zhou Hongyi, founder of 360 Group, commented that once Apple is determined to enter manufacturing, it can overcome any difficulty, so it's definitely not about encountering challenges. He also dismissed concerns about strong competitors, noting that Apple has a huge user base, and its product users will pay.
Zhou Hongyi speculated that Apple's decision to abandon car manufacturing is likely due to going "All in AI," as all American companies are embracing AI, and failure to embrace it could lead to obsolescence.
Lei Jun expressed profound shock upon hearing this news. Xiaomi's strategy revolves around the "smartphone-vehicle-home full ecosystem," and despite being well aware of the challenges involved in car manufacturing, the company made a resolute strategic decision three years ago to earnestly create a quality car for Mi fans.
Interestingly, among the aforementioned tycoons, only Lei Jun used the term "shock" in his evaluation.
Considering among the domestic new forces in car manufacturing, only Lei Jun and Jia Yueting have backgrounds in the smartphone industry before venturing into the automotive sector.
So, when Lei Jun made this "shocking" statement, netizens couldn't help but joke that "the master and mentor's company is withdrawing" and "feeling sorry for Xiaomi".
Now let's take a look at some comments from netizens.
Some believe Apple's decision to abandon car manufacturing sets a precedent for the industry, indicating it's not worth entering. Others see it as Apple operating on a higher plane. There are also those who assert that Apple is doubling down on AI, leaving others struggling to keep pace.
Some argue that Apple lacks a promising future, as the tech giant, known for its innovation, hasn't diversified into the automotive sector to tap into a second growth curve. Additionally, in the realm of artificial intelligence (AI), Apple seems to be lagging behind its competitors. Even with recent releases like the Vision Pro, market feedback hasn't been overwhelmingly positive, leading to the conclusion that Apple isn't the same powerhouse it once was.
Why Can't Apple Make Cars?
Although many people joke about "Lei Jun losing to his teacher," rationally speaking, Apple's "teacher" is actually losing its edge.
The advantages of Apple's products are gradually being eroded by competitors, and there have been few "revolutionary innovations" in recent years. The highly anticipated spatial computing product, Vision Pro, has yet to make a significant impact.
In the realm of car manufacturing, reports suggest that Apple had to abandon its plans because it couldn't meet Apple's high demands for automobiles. It's understood that Apple aimed to develop a fully autonomous car without a steering wheel or brakes.
To put it nicely, this reflects Apple's high standards for itself; but to put it bluntly, it's akin to blindly trying to achieve the impossible, something beyond the current capabilities of human technology, even for Apple.
Setting aside top domestic car manufacturers, even struggling or near-failing companies like WM Motor and Qoros have managed to launch several mass-produced models. Even Jia Yueting, despite spending a fortune and delaying for years, managed to deliver at least 10 cars.
Apple's shift towards artificial intelligence is also notably lagging behind giants like OpenAI and Google. Just ask yourself: Do you really find Siri useful?
Acknowledging Apple's failure in the automotive industry is undoubtedly difficult for its supporters.
When the tech industry loses its benchmarks
This isn't meant to mock Apple's abandonment of car manufacturing. On the contrary, Apple, Google, OpenAI, and others are all great giants, leaders in their respective fields, who have introduced countless outstanding products that have changed the world.
However, this doesn't mean that everything these frontrunners do is always right. Despite Apple's strength, it hasn't produced a product in the past decade that matches the impact of the initial launch of the iPhone.
Today, Apple is exploring new directions for development, such as car manufacturing, artificial intelligence, VR, etc. The same goes for other industry leaders.
Even the slowest student graduates eventually, so now we no longer need a "benchmark." Whether teacher or student, everyone must explore the path of development independently, and nobody may know for sure which path is correct.
And the fact that we're in this situation precisely indicates that we no longer need a "benchmark" as much as before.
Apple vigorously promotes Vision Pro, while the domestic VR market operates poorly and does not follow suit
Recently, Apple launched its virtual reality product, Vision Pro, with great fanfare. However, the domestic VR market has seen lackluster performance in recent years. While it might not be accurate to describe it as "operating poorly," it's certainly not shining brightly.
Take a leading domestic VR brand, for example. In early 2023, this brand slashed its sales target from 1 million units in 2022 to 500,000 units.
Moreover, several key business leaders of this brand have reportedly resigned or been reassigned. The number of departing employees has nearly reached half of the peak number of on-duty staff.
In terms of the overall market, according to IDC consultancy data, VR device shipments in China in the first half of 2023 were 260,000 units, a year-on-year decrease of 53.3%.
Despite Apple's release of Vision Pro from last year to its official sales this year, although it garnered attention from the tech community, it failed to drive domestic VR companies to follow suit on a large scale.
Furthermore, based on media and user feedback on Vision Pro, while the product features are strong and belong to the industry-leading level, it still hasn't addressed the pain points of VR devices, such as discomfort in wearing, poor cost-effectiveness, and limited productivity enhancement.
Pinduoduo rises as the new king, while the old king loses its crown
Finding a "benchmark" doesn't necessarily mean looking at foreign leading companies. For example, in the e-commerce industry, Alibaba and JD.com have always been the industry benchmarks. Anyone in China wanting to do e-commerce has to learn from Alibaba and JD.com.
The most typical example is the "Double Eleven" shopping festival, where almost all industry practices are derived from Alibaba and JD.com.
However, after the Double Eleven in 2023, Pinduoduo suddenly rose rapidly, with its market value surpassing Alibaba's at one point, becoming the king of China's e-commerce. Moreover, Pinduoduo's Double Eleven didn't employ complex tactics; it simply relied on aggressively low prices to win user approval.
OpenAI starts the trend of large models, while Sora silences the crowd
After OpenAI's ChatGPT3.5 was launched, it sparked a wave of domestically developed "large models," with various tech and internet companies introducing their own large models.
Even though some were criticized for being "copycats" or "plagiarizing," they still emphasized that "we have accumulated years of technology" and "we have been laying the groundwork for years."
However, recently, when OpenAI released Sora, it also caused a frenzy in AI media. However, in China, apart from defeating the "AI giant" Li Yizhou, not many companies followed suit to launch their own "text-to-video applications."
Only a bunch of AI self-media outlets keep "exploding" every day, which indirectly indicates that there aren't as many cutting-edge technologies and products that are easy to amaze people anymore.
Facebook's metaverse fails, Meizu stops making traditional smartphones, Lenovo launches AIPC
Zuckerberg previously bet on the metaverse, which also led some domestic tech companies to hype the concept of the metaverse. But now, with Meta failing miserably, they can only hope that Apple's Vision Pro can salvage the metaverse. And there's not much talk about the metaverse in China anymore.
Meizu, once with numerous followers, suddenly announced that it would no longer make traditional smartphones but instead go "all in" on AI. At this year's Mobile World Congress, Lenovo launched several AIPC products, actively embracing AI.
With Zuckerberg losing credibility, domestic tech companies are incorporating AI into their products and engaging in integrated innovation, such as ecological innovation like "human-vehicle-machine."
Only Tim Cook commemorates Steve Jobs, and no one wears jeans at the keynote anymore, as the masters gradually fade away
In addition to these changes, February 24th this year marked the 69th anniversary of Steve Jobs's birth. But perhaps due to the Lantern Festival, there were few commemorations in China, with only Tim Cook expressing nostalgia for Jobs in a post.
In fact, for many years, almost only Tim Cook has commemorated Steve Jobs, and nobody has mentioned Jobs in social media circles for many years.
Furthermore, at various keynote events, no one imitates Jobs by wearing his classic black turtleneck and jeans to introduce products anymore. Some don't even wear jeans anymore. And when it comes to Apple abandoning the idea of making cars, opinions are divided. This is worth noting because Apple, as an industry leader, used to receive overwhelming support for almost every move it made. This just goes to show that the tech industry's need for a "reference point" is no longer as high as it used to be.
Whether it's Apple or Facebook and others, these old masters are gradually fading away.
So when we look at China's new energy vehicle market today, domestic cars are just as competitive as their joint venture counterparts; domestic brands have even reached the million-dollar level and gained good reputation;
And when we look at the smartphone market today, domestic brands are offering increasingly rich features, and the user experience tailored specifically for domestic users even surpasses that of the iPhone;
Rather than blindly following trends, independent exploration and finding development paths that suit their respective markets are the future of the tech industry. Of course, conquering core technologies that need to be conquered is still essential. Transitioning from learning and imitation to independent innovation is the inevitable path for every emerging market.
