We’ve been dreaming of something as revolutionary as the iPhone for years. Apple itself has just given an answer

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We’ve been dreaming of something as revolutionary as the iPhone for years. Apple itself has just given an answer

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There will be no “new iPhone” from Apple. Not literally, but by presenting it as a revolutionary product that changed an entire industry and became the mainstay of the company’s revenue. Yes, we will see an iPhone 17 and probably an iPhone 18, a 19, a 20 and a more or less long etc.

However, faced with investor concern and despite record turnover in the last quarter, Apple wanted to be firm with its shareholders by confirming that Your current products will not reach this level of profitability. At least in the short to medium term.

Apple has been very clear to its shareholders

Nearly twenty years after the launch of the original iPhone, this product It has become the great pillar of Apple’s revenue. The latest example is Apple’s recent earnings announcement for the third quarter of the year, in which iPhones accounted for 48.7% of revenue.

It’s been like this for years and 5 out of 10 dollars earned by Apple comes from iPhone sales. And while it is true that this should not be a bad thing, given that they continue to grow in areas such as services with an upward trend that does not stop, the truth is that in Ultimately, we understand that the smartphone is the epicenter. of everything. Indeed, since a good part of the services are linked to the iPhone, it is understood that if the iPhone disappeared tomorrow, this branch of services would also fall.

Even the Vision Pro couldn’t emulate the iPhone at its current price and approach to first users

And the current problem for many investors is not so much the disappearance of the iPhone, which does not seem feasible in the short and medium term. Yes instead They fear there will be no “new iPhone”. And not literally, as we already explained at the beginning, but in relation to a product or service that manages to monopolize half of the brand’s revenue.

And given this, Apple wanted to be frank with its shareholders. As revealed by the Financial Times, the company led by Tim Cook was clear in informing them that its current projects “may not reach iPhone profitability”. They do not exclude it completely, but they show that it is for the moment a utopia. In this way they make it clear that products like the Apple Vision Pro are not yet established, something that Tim Cook had already expressed a few days ago.

Beyond the product, Apple has other challenges

Beyond seeking profitability in its future projects, Apple has also exposed other issues and concerns that are reducing its margins. Almost everything revolves around geopolitical tension in the broadest sense of the term. From wars in Ukraine or Israel to existing tensions between China and Taiwan.

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Reference is also made to future issues and problems that may arise in the supply chain. China continues to be Apple’s main hub in this area, particularly in terms of manufacturing. And although they are looking for new spaces in India, the trade war that the country is waging with the United States is worrying.

Likewise, they do not forget the regulatory pressure from Europe with regulations such as the DMA. In fact, after Apple’s presentation to investors, it became known that the European Commission was already considering fining Apple for not fully implementing these laws. The sanction, if carried out, had already been envisaged since the law was drafted, setting itself at 10% of the company’s overall annual turnover.

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