© Reuters. FILE PHOTO: The Apple logo is seen in this illustration taken March 1, 2022. REUTERS/Dado Ruvic/Illustration/File photo
(Reuters) -Apple Inc plans to slow hiring growth and spending next year in some units in response to a potential recession, Bloomberg News reported on Monday, citing people with knowledge on the subject.
The potential move would see Apple – the world’s most valuable company – join a growing group of US corporations including Meta Platforms and Tesla (NASDAQ: Inc) in slowing hiring.
Shares of Apple (NASDAQ:) reversed down 1.6% at $147.6. The company did not immediately respond to Reuters’ request for comment.
The Bloomberg report says the changes won’t affect all teams, and Apple is still planning an aggressive product launch schedule in 2023 that includes mixed reality headsets, new categories its first major since 2015.
“Apple’s move reflects a larger slowdown in investing in new things, new companies and new products,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. “It shows that inflation is a problem for these companies.”
In recent months, concerns about the Federal Reserve raising interest rates aggressively to curb an unwarranted rise in inflation could tip the economy into recession. Price pressures have also raised concerns that customers may limit spending on discretionary items like smartphones.
According to data from Canalys, smartphone shipments fell 9% in the second quarter. Still, Apple’s iPhone is still among the top-selling phones in the world, with the company holding a 17% market share, trailing only market leader Samsung (KS:), the data shows.
Apple usually launches new versions of the iPhone and other wearable products in September before the busy holiday season.
According to its most recent annual report, the Cupertino, California-based company has about 154,000 equivalent full-time employees.