Today, Apple is doing well. The Cupertino company has just announced a record fourth fiscal quarter. And it is gradually rolling out its Apple Intelligence features which should stimulate demand. But despite this apparent success, the future of the firm is uncertain. Indeed, despite diversification efforts, Apple is too dependent on revenues generated by the iPhone. For example, in its fourth fiscal quarter, the firm generated $94.9 billion, including $46.2 billion from the iPhone.
Apple is well aware of this problem. And this is what pushes the company to explore new markets. At one point, he was interested in electric cars, but ultimately abandoned this project. This year, Apple also took its first steps into the mixed reality market, launching the Vision Pro headset. And according to rumors, Apple is also developing connected screens for the home. However, although it seeks to develop new product categories, Apple is aware that it will not necessarily be able to replicate the success of the iPhone.
And this concern is mentioned in an annual report sent to the SEC, the American stock market watchdog. “New products, services and technologies may replace or displace existing offerings and may produce lower revenues and profit margins, which may have a material adverse impact on the company’s business, results of operations and financial condition. ‘business”we read in the part of the report which discusses risk factors.
Apple admits its AI can make mistakes
Otherwise, the document also mentions the new risks to which Apple is exposed, with the arrival of generative artificial intelligence on its products. “The introduction of new and complex technologies, such as artificial intelligence features, may increase these and other security risks, including by exposing users to harmful, inaccurate or negative content and experiences ”admits Apple.
As a reminder, while generative AI models can significantly increase user productivity, these models can also “hallucinate” and produce responses that include inaccurate information. Moreover, services that rely on generative AI generally display warnings asking the user to check the information carefully.
- Apple is doing well, it recently announced record fourth fiscal quarter results
- But the firm admits it may not be able to replicate the success of the iPhone, which is currently its main source of revenue
- Apple also admits that its new AI-based features may give users inaccurate information
