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Future products may be less profitable, Apple warns investors
Apple is experimenting with AI and mixed reality experiences

Future products may be less profitable, Apple warns investors

Nov 06, 2024
02:13 pm

What's the story

Apple has warned its investors that its upcoming products may not be as profitable as the iPhone. The cautionary note was part of the company's latest annual report under "business risks," the Financial Times reported. The tech giant is currently experimenting with new technologies like artificial intelligence (AI) and mixed reality headsets.

Investor warning

Statement on potential business risks

In its annual report, Apple wrote: "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." The tech giant's statement highlights the risk of introducing new products into its product mix.

AI competition

Apple's AI features to compete with rivals

Apple is actively integrating consumer AI features into its products to keep pace with industry rivals like Google and Meta. The company's first Apple Intelligence features went live last week, with more enhancements, including a ChatGPT integration, expected in the coming months. However, it's worth noting that not all new ventures have been successful so far.

Sales performance

Limited sales for Vision Pro headset

Apple's Vision Pro headset, the company's first mixed-reality device, has seen lackluster sales. The $3,499 price tag could be one of the reasons for this underperformance. This is 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.