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Apple Alerts Investors Future Products Might Not Be as Profitable

ByHilary Ong

Nov 7, 2024

Apple Alerts Investors Future Products Might Not Be as Profitable

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.


Featured Image courtesy of Samsul Said/Bloomberg via Getty Images

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Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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