Apple warns about lower profits from new products

The technology company Apple released a report this Tuesday, in which it warns that the company's new products or services may not be as profitable as the iPhone.

“New products, services and technologies may replace or supplant existing offerings and may generate lower revenues and profit margins, which may negatively affect the company's business, operating results and financial condition” states Apple in the report.

In the document, the company says that there is no guarantee that it will be able to successfully manage future productions and services. Apple states that the success of its launches is related to several factors, such as development, market acceptance and risk management of new technologies.

Investing in Artificial Intelligence

Apple listed several factors that could impact the profitability of its future products. In the report, she recognizes the intense competition in the technology market, adding to rival companies that offer similar products at lower prices.

Furthermore, dependence on the manufacturing of components, products and services provided by partners is also considered a risk, as delays or increases in costs can affect final costs and operations. “While these agreements can reduce operating costs, they also reduce the Company’s direct control over production and distribution” says the report.

But Apple is not just focusing on its models of iPhones, MacBooks and other devices, but to maintain market competition the company has been investing in artificial intelligence just like Google and Meta. The North American company recently launched the first Apple Intelligence features and also promises to integrate ChatGPT, the Siri virtual assistant, in the coming months.

_{Apple Intelligence for iPhone 16 (Video: playback/Youtube/Apple)}

iPhone sales grew 5.5%

With the launch of the new iPhone 16 Smartphone model, the device is the main product driving Apple's sales. In the Balance Sheet for the third quarter of this year, it points out that iPhone sales grew by around 5.5% compared to the same period in 2023. A result that surprised analysts. Although profits were down 35% compared to the year-ago quarter, the company's overall sales reached $94.9 billion.

Featured photo: Apple Store in Malaysia (Reproduction/Annice Lyn /Getty Images Embed)