Keeping in view the economic downturn in the USA and the rest of the world, Apple plans to put a limit on its spending and also wants to slow down hiring.
Apple, which is among the most valuable tech companies in the world, has made a move which is similar to what's seen in the Tesla and Meta Platforms. Both these two companies have also slowed down hiring to save money.
After the news, the Apple stock registered a drop of 1.6% and was trading at $147.6.
However, reports suggest that this move by Apple will not have a company-wide effect. In fact, Apple is also planning a product launch in 2023, which will include a specially mixed reality headset. If this happens, that will be one of the first major categories as witnessed in 2015.
Apple Is Slowing Down
This move by Apple shows a gradual slowdown in its investments in new products, companies, and things. According to experts, the reason for this slowing down is due to the rising inflation, which is increasing the costs of pretty much everything.
However, there is fear in the markets that the Fed's move to rising interest rates could trigger a full-blown recession in the economy. The Fed is trying to combat inflation with its rate hikes, but it will slow down the economy without any doubt!
Furthermore, there is also fear that customers will be spending less money on items such as smartphones due to the rise in inflation.
Right now, Apple's market share in the broader smartphones market is 17% which puts it behind Samsung (market leader). Overall, smartphone shipments around the world saw a decline of 9% during the 2nd quarter - But Apple's situation is still strong as the demand for iPhones is not showing any signs of a slowdown.
According to the last annual report of Apple, the company had around 154,000 people working for it and were full-time employees.