Regardless of how successful Apple has been through the years, the company is also heavily affected by inflation today, prompting executives to conclude a slow hiring process.
The tech giant isn’t alone. Many other companies are making similar decisions.
However, Apple assured employees that hiring freezes would not be a company-wide policy.
The company’s new recruiting policy will impact various industries based on sales, supply chain problems, and consumer demand.
While not all Apple teams will be affected, the company plans to produce a more expansive range of products next year.
Additionally, the tech giant will assess the situation of industries “on a case-by-case basis” rather than fill vacancies.
Hiring decisions from 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.
Apple’s flagship iPhone remains key to sales. However, regional uncertainty and economic headwinds reduced global phone shipments by 9% year-over-year in the second quarter, research firm Canalys reports.
The company noted that Apple accounted for 17% of global phone shipments in the second quarter, an improvement of 14% sequentially.
The iPhone 13 remains one of the most sought-after phones, while its competitor Samsung has the biggest market share with a 21% market share.
Canalys pointed out that Samsung’s strong shipments are mainly due to its low-end A-series phones, a remarkably affordable series compared to the iPhone 13 series.
Apple revenue report
Next week, July 28, the company will announce its results.
Earlier in April, Luca Maestri, Apple’s chief financial officer, warned that the company would face several challenges in the second quarter, particularly supply shortages that could push total sales up to $8 billion.
However, the steady demand for the iPhone 13 shows substantial revenue despite the warnings.
Toby Zhu, an analyst at Calays, said telephone promotions and special offers would help ease pressure on supply.
However, he warned that consumers are suffering from inflation, which makes it unlikely that they will be able to earn the same income needed to buy the new phones as they did last year.
Zhu also warned of ongoing collapses within 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 withstood the pressures of issues like Xiaomi, Oppo, and Vivo, which dropped to double digits and captured 14%, 10% and 9% global market share, 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 occupying key positions in their respective fields.
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.