Apple has warned investors that future products might not be as profitable as the iPhone. This is especially true as it moves into AI and VR markets. The warning came in its latest annual report. It mentioned that new projects, like the Vision Pro headset and AI services, might incur higher costs and offer lower profits. Additionally, Apple faces regulatory challenges, especially regarding the App Store and its dependence on Google for search revenue.
Recently, Apple’s gross margin reached a record 46.2%. However, analysts are skeptical about maintaining this level with new products. Hardware margins sit around 36%, while services exceed 70%.
As Apple shifts towards AI and services, it’s lowering expectations. This reflects both new opportunities and the challenges of moving away from its traditional business model.