Apple is signaling to investors that its future product lines, despite being innovative, may not deliver the same profit margins as its hallmark iPhone. The tech company issued this warning in its annual report, emphasizing potential financial challenges as it explores new technologies. The Financial Times first reported on the disclosure.
The alert, embedded under “business risks,” outlines concerns that emerging offerings like artificial intelligence and mixed-reality headsets may not replicate the iPhone’s revenue success. According to the report, newer products could lead to “lower revenues and lower profit margins,” potentially impacting Apple’s overall business performance and financial stability.
As Apple ventures into AI, it has already rolled out Apple Intelligence features. Competing with major players like Google and Meta, Apple is expected to release more AI enhancements, including ChatGPT-like integrations, in the coming months.
Meanwhile, Apple’s Vision Pro headset has faced a lukewarm market response. With a steep $3,499 price, adoption appears limited, highlighting the challenges Apple faces as it attempts to diversify its revenue streams.
