Recently, Apple warned investors that future products might not be as profitable as the iPhone. This warning, included in its latest filing with the SEC, points to possible profit challenges ahead. Apple, which Nvidia recently overtook as the world’s most valuable company, reported a 6% rise in revenue last quarter but expects slower growth in the current one.
The company noted that new technologies might bring in lower revenue and warned of risks from “geopolitical tensions.”
In its fiscal fourth quarter ending Sept. 28, iPhone sales grew 5.5% to $46.22 billion, with the new iPhone 16 outperforming last year’s model. While iPhone sales were strong, other products did not meet expectations.
CEO Tim Cook highlighted Apple’s new AI features, which are now built into devices and especially available in the latest models, conveying Apple’s focus on AI.
Apple’s services, including iCloud and Apple Music, earned $24.97 billion, just below projections. Sales of Mac, iPad, and wearables like Apple Watch and AirPods were also slightly lower than expected, reaching $9.04 billion instead of $9.2 billion.
