Apple warns investors new products may never match iPhone’s profitability

What a story

Apple warned its investors that its future products may not be as profitable as iPhone.

The warning was part of the company’s latest annual report under “business risks.” Financial Times reported.

The tech giant is currently experimenting with new technologies such as artificial intelligence (AI) and mixed reality headsets.

Potential Business Risk Statement

In its annual report, Apple wrote: “New products, services and technologies may replace or displace existing offerings and could cause revenues and earnings to decline, which could have a material adverse effect on the company’s business, results of operations and financial condition.”

The tech giant’s statement highlighted the risk of introducing new products to its portfolio.

Apple’s artificial intelligence capabilities will help it compete with competitors

Apple is aggressively integrating consumer AI features into its products to keep pace with industry competitors such as Google And Meta.

The company’s first Apple Intelligence features launched last week and included additional enhancements including ChatGPT integration expected in the coming months.

However, it is worth noting that not all new businesses have been successful so far.

Limited sales of Vision Pro headset

Apple Vision Pro Sales of the headset, the company’s first mixed reality device, have been lackluster. The $3,499 price may be one of the reasons for this poor performance.

It’s a prime example of the challenges Apple faces as it explores new product categories and technologies that may not promise the same level of profitability as its flagship iPhone.