Weak EBIT ProfitabilityOperating profitability remains a structural vulnerability: despite strong gross margins, persistent EBIT weakness and a low net margin constrain free cash conversion and limit flexibility for sustained marketing, R&D and international expansion unless operational leverage improves.
Product-cycle Revenue ConcentrationHeavy reliance on major product launches creates lumpy revenue and upgrade-driven demand. If future growth depends on periodic hardware refreshes, the business may face inconsistent quarter-to-quarter results and pressure to continuously innovate, increasing execution risk over the medium term.
Product Design / Regulatory ConstraintsRegulatory constraints forcing design compromises can impact customer satisfaction and brand perception. Addressing such issues may require redesigns or concessions that increase costs or slow rollout, posing a structural product development and reputation risk if not managed proactively.