The company is reported to be altering its focus from building its own complete car to developing a flexible autonomous driving system that will allow it to easily partner with existing car manufacturers.

Changes to what the company refers to as Project Titan come after prolonged internal struggles over Titan’s direction, management changes and wholesale staff departures.

Reports emerged last month that Apple had begun sacking dozens of its car division employees and now apparently hundreds have been culled from the 1000 strong team.

Apple’s commitment to the project remains strong, despite the retrenchments, with the company hiring people whose skills are more closely aligned with the new focus.

Central to the change of course is Apple’s apparent struggle with relatively complex automotive supply chains. The company is used to exerting considerable influence on its suppliers, sometimes securing exclusive use of certain parts.

The large initial capital cost to produce car parts meant that potential manufacturers were less than enthusiastic to enter supply contracts that would have covered only relatively small quantities.

Apple may also have realised that building cars would not be as lucrative as its usual business. Software and mobile device companies have traditionally enjoyed big profit margins where car manufacturers struggle to clear 10 per cent.

It seems likely that there will be churn at this intersection between the various connected industries for some time. Different companies are seeking the most profitable leverage of their technology and expertise while others, such as traditional car manufacturers, try to retain their position while not ceding control of the lucrative software component of new cars.

Google too has already decided not to make a car, but is instead focused on creating an artificial intelligence (AI) driver. It is reported that the company’s driverless software is able to detect and understand things like hand signals to allow interaction with cyclists and pedestrians as a human would.

Google is also taking the line that developing an ideal AI driver means creating a suite of sensors and software that can be used to drive everywhere, regardless of the make or model of the vehicle.

Apple’s new approach does not rule out a return to the initial approach if circumstances should make that a sensible course of action.

News agency Bloomberg reports that senior Apple executives have given the car team an ultimatum to prove the feasibility of the self-driving system and decide on a final direction by the end of 2017.

When the project was first announced in 2014 a complete self driving car was supposed to be ready by 2020.

By Daniel Cotterill