Apple Warns Investors Future Products May Never Be as Profitable as iPhone

Apple has warned investors that future products may never be as profitable as its iPhone business, as it pushes into unproven new markets such as artificial intelligence and virtual reality headsets. From a report: The iPhone maker added the new warning on growth and profit margins to its latest annual report, in the list of "risk factors" facing the tech group's business. "New products, services and technologies may replace or supersede existing offerings and may produce lower revenues and lower profit margins," Apple said, "which can materially adversely impact the company's business, results of operations and financial condition." Apple routinely warns investors in its annual reports that competition, foreign exchange, supply chain issues and other factors can put "volatility and downward pressure" on its margins. The same 10-K regulatory filing in previous years suggested that new product introductions could have "higher cost structures." But until now, Apple has not been so direct in addressing the financial profile of its future products.

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