No one is immune to the heavy inflation affecting the country, and Apple is no exception to the rule. But, with an unsteady second quarter, the tech giant is forced to slow its hiring process.
The tech giant is not alone. Many other companies are making similar decisions.
However, Apple assured employees that the hiring freeze would not be a company-wide policy.
Apple’s statement
The company’s new recruitment policy will impact different industries based on sales, supply chain issues and consumer demand.
Although not all Apple teams are affected, the company plans to produce a wider product line next year.
Additionally, the tech giant will assess the situation of industries “on a case-by-case basis” rather than fill vacancies.
Hiring decisions by other companies
Google and Microsoft recently announced that they are changing their plans.
While Google will implement the same plan as Apple, Microsoft will lay off a small percentage of its workforce.
Microsoft Chairman Brad Smith said US companies are entering a new era of hiring as fewer people enter the workforce, suggesting many companies are offering higher wages to attract more workers.
Shipping
Apple’s flagship iPhone remains the key to sales. However, regional uncertainty and economic hardships reduced global telephone shipments by 9% year-on-year in the second quarter, research firm Canalys reported.
The company noted that Apple accounted for 17% of global phone shipments in the second quarter, up 14% sequentially.
The iPhone 13 remains one of the most sought-after phones, while the competitor Samsung has the largest market share with a market share of 21%.
Canalys pointed out that Samsung’s strong shipments are mainly due to its low-end A-series phones, a remarkably affordable range compared to the iPhone 13 series.
Read also: iPhone Users to Receive Two New Major Security Boost from Apple
Earnings report
The company will announce the results next week, on July 28th.
Earlier in April, Luca Maestri, Apple’s chief financial officer, warned that the company would face several challenges in the second quarter, most notably inventory shortages that could push total sales to $8 billion.
However, the steady demand for the iPhone 13 shows significant revenue despite the warnings.
Calays analyst Toby Zhu said phone promotions and special offers would ease the supply pressure.
However, he warned that consumers are suffering from inflation, making it unlikely that they will earn the same income as last year to buy the new phones. Zhu also warned of ongoing collapses in the supply chain.
“While component supplies and cost pressures are easing, a few concerns remain within logistics and production,” said Zhu.
“Such as some emerging markets’ tightening import laws and customs procedures delaying shipments.”
Meanwhile, Chinese phone makers have been enduring the pressure of issues like Xiaomi, Oppo and Vivo, which have dropped to double digits and captured 14%, 10% and 9% global market shares, respectively.
Other Apple news
Apple recently launched a new initiative to strengthen security and fight mercenary spyware and other digital threats.
Block Mode is a tool that allows users to protect themselves from threats, especially those that hold key positions in their respective fields.
For example, the tool would allow them to block most messages, disable various web technologies, limit functionality, and block Apple services such as invitations and service requests.
References:
