Apple faces challenges despite the success of the iPhone, as its focus on the cash cow inhibits innovation for future products. The company has a history of overcoming such dilemmas, demonstrated by the transition from iPod to iPhone. However, current ventures like the self-driving car and Vision Pro have not matched the iPhone's success. Apple's recent growth comes from its services business, but regulatory pressure and competition pose threats. Despite challenges, Apple remains confident in its performance, as shown by its report on phone sales in China.