Apple Faces Setbacks and Leadership Shifts Amidst Visionary Ambitions
AInvestMonday, Oct 14, 2024 4:01 am ET
1min read
AAPL --

As of last week, Apple Inc. (AAPL) shares declined by 0.65%, marking a two-day downturn of 0.87%. Over the past week, the stock posted a modest gain of 0.33%, increasing by 18.65% year-to-date. The company's market capitalization currently stands at $3,459.7 billion.

Recent developments indicate that Apple has officially ceased its autonomous vehicle initiative in California. The company requested the state's Department of Motor Vehicles to revoke its permit for testing self-driving cars on public roads. Initially granted in 2017, the license allowed Apple to test with safety drivers until April 30, 2025. Apple submitted a formal cancellation notice, with the permit due to be nullified by September 27.

This halt marks another setback for Apple's Project Titan. Earlier reports suggested that the launch of Apple’s car had been delayed and the autonomous driving level had been downgraded from L4 to L2+. These developments underscore the challenges Apple faces in the competitive automotive technology sector.

In related technology news, Apple is reportedly preparing to introduce a lower-priced version of its Vision headset, potentially as soon as next year. Despite the high expectations surrounding the $3,500 Vision Pro, consumer reception has been lukewarm, with sales not reaching projected figures. The anticipated lower-cost model, priced around $2,000, may omit certain features such as EyeSight to reduce expenses.

Apple's Vision Products Group is also exploring other innovations, such as smart glasses akin to Meta’s Ray-Bans and AirPods with camera capabilities. This diversification aims to leverage the company’s visual technology across more products and recoup substantial R&D investments.

In a significant personnel change, Dan Riccio, an Apple veteran who spearheaded the development of the Vision Pro headset, is set to depart from the company. Riccio has been a part of Apple's success story for over 26 years, contributing to products like AirPods, iPad Pro, and large-screen iPhones.

John Ternus, head of Apple’s hardware operations, will assume Riccio’s duties, while Mike Rockwell is expected to lead the Vision Products Group. The transition reflects Apple's strategy of promoting from within, ensuring continuity in its leadership.

Furthermore, Apple's Global Procurement Lead, Dan Rosckes, will soon retire after 24 years, with David Tom expected to succeed him. Tom’s background in negotiating components procurement positions him strategically for the role.

These leadership shifts suggest Apple is bracing for a broader transition, particularly as several executives near retirement. Notably, CFO Luca Maestri is slated to step down from his role by year-end, transitioning his focus to other strategic areas within the company.

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