Apple warns investors that its new products may not be as profitable as iPhone

Apple warns investors that future products and new products may not be as profitable as iPhones. The disclosure comes at a time when Apple is pursuing newer technology like mixed-reality headsets and artificial intelligence. Apple included the warning in its annual report, under the section “business risks”, as first reported by Financial Times. Apple wrote that “new products, services, and technologies may replace existing offerings, and may result in lower revenues and profit margins. This can have a materially adverse impact on the company’s results of operations, financial condition, and business.”

To compete with competitors like Google and Meta, the company has been working on implementing consumer AI features into its products. Apple Intelligence launched its initial features last week. The company has promised to add more features, like ChatGPT integration in the future.

Apple’s Vision Pro headset has seen limited sales due to its steep $3,499 cost.