The slowdown in iPhone sales seems to be having an impact on tech giant Apple. The company has announced that it will slow down its hiring in some divisions. Apple CEO Tim Cook disclosed this in a meeting with employees which transpired a day after he wrote a letter to investors about the company’s performance.
Apple is currently struggling in South Asian markets especially in China where the ongoing US-China trade war is having an impact on the company’s performance. CEO Tim Cook told employees during meeting earlier this month that Apple will reduce hiring in certain groups. When specifically asked about whether there would be a complete hiring freeze, Cook added that the company will not freeze the hiring completely but will curtail hiring in some divisions only.
Earlier this month, Tim Cook had warned investors through a letter that the first quarter earnings could be weaker than expected. The company expects to generate $84 billion which is less than its earlier estimation of $89 to $93 billion. The slowdown in the iPhone sales is cited as a major reason behind this reduced estimation.
Earlier this month, Tim Cook wrote, “As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed. And market data has shown that the contraction in greater China’s smartphone market has been particularly sharp.”
Cook had also hinted that the rising trade tensions between the United States and China are not helping the company in recovering the dip in sales. Sluggish iPhone sales in India and other important markets like China is a worrying sign for the company as it has failed to innovate in a long time now.
In an interview with CNBC’s Jim Cramer, Apple CEO had mentioned that he expects more from Apple’s flagship iPhone XR. He further added that the company is reworking its sales strategy to sell more iPhones. Tim Cook believes that iPhone XR is an incredibly innovative product that is struggling to sell in the current market.
While Tim Cook did not mention which divisions of the company will face a slowdown in hiring, he made clear that important divisions like Artificial Intelligence (AI continue to hire aggressively. The tech giant has grown from a workforce of 32,000 in 2008 to 132,000 in 2018.
Source - Techgig