Apple is warning investors that its new and future products might never be as profitable as its current products such as the iPhone. The tech giant added the warning in its SEC annual report under the “business risks” section, as reported by the Financial Times.
Of course, such reports always include the bleak outcome of future plans, so keep that in mind.
“New products, services and technologies may replace or supersede existing offerings and may produce lower revenues and lower profit margins, which can materially adversely impact the company’s business, results of operations and financial condition,” Apple wrote in the report.
The tech giant adds that, “due to the highly volatile and competitive nature of the markets and industries in which the Company competes,” it must continually introduce new products, services and technologies, enhance existing products and services, effectively stimulate customer demand for new and upgraded products and services, and successfully manage the transition to these new and upgraded products and services.
The company adds: “The success of new product and service introductions depends on a number of factors, including timely and successful development, market acceptance, Apple’s ability to manage the risks associated with new technologies and production ramp-up issues, the availability of application software or other third-party support for the company’s products and services, the effective management of purchase commitments and inventory levels in line with anticipated product demand, the availability of products in appropriate quantities and at expected costs to meet anticipated demand, and the risk that new products and services may have quality or other defects or deficiencies. “
