According to Mark Gurman of Bloomberg, Apple will slow down hiring and cut off budgets for some company divisions next year due to a potential economic meltdown. The report on Monday notes that this is not a companywide policy.
Each division or team inside Apple Park in Cupertino receives an annual budget to spend in order to conduct research and development, resources, and hiring. In 2023, Apple will reduce the sums for certain divisions.
The Cupertino-based giant plans to launch an “aggressive” 2023 lineup of products including the upcoming AR/VR headset that faced a delay this year. The report does not mention the details of the internal actions the company will perform.
“The decision stems from a move to be more careful during uncertain times, though it isn’t a companywide policy, said the people, who asked not to be identified because the deliberations are private. The changes won’t affect all teams, and Apple is still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015.”
The reasons for the lower-than-expected support the company is providing to the teams is the uncertain time ahead with the COVID-19 pandemic still raging on, the Russian invasion of Ukraine, and high inflation that is hitting the economies worldwide.
Apple shares fell 2.1% to $147.07 after the report was published on Monday, marking the biggest one-day decline in three weeks. The stock also took a downturn of about 17% so far this year.
In late April, the company reported a larger-than-expected 4.5% revenue jump of $97.3 billion. iPhone was the largest revenue-maker for the company with $50.57 billion, a 5.5% increase. Here is the full list for each category:
- iPhone: $50.57 billion (5.5% up)
- Mac: $10.43 billion (14.3% up)
- iPad: $7.65 billion (2.2% drop)
- Wearables: $8.82 billion (12.2% up)
- Services: $19.82 billion (17.2% up)
