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Apple warns investors its new products might never be as profitable as the iPhone
November 8, 2024

Apple warns investors its new products might never be as profitable as the iPhone

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Apple is warning investors that its new and future products might never be as profitable as the iPhone. The disclosure comes as the company is pursuing newer technologies like artificial intelligence and mixed-reality headsets.

Apple added the warning in its latest annual report under the ‘business risks’ section, as first reported by the Financial Times.

‘New products, services and technologies may replace or supersede existing offerings and may produce lower revenues and lower profit margins, which can materially adversely impact the company’s business, results of operations and financial condition,’ Apple wrote in the report.

The company has been working to implement consumer AI features in its products to compete with rivals like Google and Meta. Apple’s initial Apple Intelligence features launched last week, and the company has promised additional features, such as a ChatGPT integration, in the coming months.

As for Apple’s Vision Pro headset, the device has seen limited sales, likely due to its hefty $3,499 price tag.

Reference: https://techcrunch.com/2024/11/05/apple-warns-investors-its-new-products-might-never-be-as-profitable-as-the-iphone/

Ref: techcrunch

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