Citing inside sources, Bloomberg’s Mark Gurman reported that Apple began tightening internal operations in July last year in response to inflation and a recession. Inside sources asked not to be identified as they were not expected to be made public. However, this plan, which was only an internal strategy, widens and deepens. There is no reason. Apple’s 2022 year-end sales were down 5% year-over-year due to iPhone production delays and weak Mac demand, and are also expected to decline this quarter.
“We judge our spending very carefully and thoughtfully, and we continue to consider hiring very carefully,” CEO Tim Cook said at a shareholder meeting last week.
Gurman said Apple’s cost-cutting measures include cutting travel budgets, overseeing executive spending and laying off some contract workers. Cook himself took a pay cut. However, unlike other IT companies, Apple has not carried out large-scale job cuts and layoffs. Google, Microsoft, Amazon, Facebook, Spotify, etc. Most IT giants except Apple have used mass layoffs as a method.
This may in part be due to the cautious tendencies of individual CEOs. Apple doesn’t expand its business as much as its competitors, even when profits are booming. But the recession has a relative meaning.
In its quarterly report, Apple only mentioned that its services division passed $20 billion in revenue for the first time. Apple’s services division has significant revenues that make it one of the top Fortune 500 companies. In the last quarter, Intel’s revenue was $14 billion, while Netflix’s was just under $8 billion. Sales of the iPad business increased by 30% and are still very profitable. While Apple’s revenue isn’t a serious concern, it still takes cost-cutting and the recession seriously.
editor@itworld.co.kr
