Apple warned investors of the possibility that its new products and technologies, such as virtual reality headsets and advancements in artificial intelligence (AI), might not be as lucrative as the iPhone.The Financial Times reported on Tuesday (November 5, 2024).
The statement was included in the company’s annual report under a list of “risk factors.” Apple often uses the document to inform investors about issues such as competition, currency exchange, and supply chain challenges.
The company discussed the potential harm that new launches could do to its operations. It warned that “new products, services, and technologies may replace existing offerings and produce lower revenues and profit margins.”
The company also highlighted “geopolitical tensions” and security risks associated with new AI capabilities. Apple is currently making investments to compete with tech companies like Meta and Google.
On October 31, Apple revealed its $14.7 billion third-quarter 2024 net income. Compared to the $22.9 billion recorded during the same period in 2023, the result represents a 35.8% decrease.
However, revenue increased by 6% to US$94.93 billion during the quarter. Additionally, sales of iPhones increased by 5.5% during that time, reaching US$46.22 billion as opposed to US$43.8 billion during the same period the previous year.
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