1. Apple's new film 'F1' has a $300 million production budget. 2. Apple's video unit has not turned a profit since 2017. 3. The last three major films lost over $200 million at the box office. 4. Apple TV+ holds 45 million subscribers but less than 1% market share. 5. CEO Tim Cook does not expect iPhone sales to rise from 'F1'.
Apple's struggles in original content creation and profitability raise concerns. Historical evidence shows unprofitable sectors can lead to investor skepticism, as seen with Netflix's early struggles.
The article illustrates ongoing profit challenges in a growing cost sector, affecting overall market perception. Additionally, high expenditure without profits can reallocate investor focus towards Apple's core strengths.
Immediate investor sentiment may decrease as financial challenges are highlighted. Short-term reactions can occur due to profit warnings in entertainment sectors.