Apple (AAPL) has reportedly decided to scrap its plans to build a car after investing billions of dollars and nearly a decade into the project. Industry experts believe this move could ultimately benefit the tech giant. According to a report by Bloomberg, the decision came after Apple executives realized the challenges and expenses involved in developing a vehicle from scratch.

Sam Fiorani from AutoForecast Solutions noted that "a successful and profitable company such as Apple has little to gain from building their own vehicle", pointing out the difficulties faced by competitors like Rivian and Lucid in the electric vehicle market. Analysts highlighted that the saturated EV market, declining demand, and the company's focus on software and data gathering through iPhones contributed to the decision to halt the car project.

Fiorani suggested that Apple's expertise could be better utilized in improving the user experience for existing automakers through software solutions like Apple CarPlay. The canceled car project has received positive feedback from Wall Street analysts, with Morgan Stanley's Adam Jonas acknowledging the move as a step towards focusing on more promising technologies such as Generative AI.

While the costs incurred are not ideal, the shift in Apple's strategy from building a car to exploring advanced technologies like AI has been well-received by experts and investors alike. This move is expected to redirect resources towards areas with higher potential for innovation and market success.