LONDON: Apple Inc. plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn, Bloomberg News reported on Monday, citing people with knowledge of the matter.
The potential move would see Apple 鈥� the world鈥檚 most valuable company 鈥� join a growing pool of American corporations including Meta Platforms and Tesla Inc. in slowing hiring.
Apple shares reversed course to trade down 1.6 percent at $147.6. The company did not immediately respond to a Reuters request for comment.
The Bloomberg report said the changes would not affect all teams and that Apple was still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015.
鈥淎pple鈥檚 move reflects a broader slowdown in investing in new things, new companies and new products,鈥� said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. 鈥淚t signifies that inflation is an issue for these companies.鈥�
Fears have risen in recent months that aggressive interest rate hikes by the Federal Reserve to tame an unabating surge in inflation could tip the economy into a recession. The price pressures have also raised worries that customers could curb spending on discretionary items like smartphones.
Smartphone shipments declined 9 percent in the second quarter, according to data from Canalys. Still, Apple鈥檚 iPhones remain among the most sold phones in the world, with the company holding a 17 percent market share just behind market leader Samsung, the data showed.
Apple typically launches a new version of its iPhone and other wearable products in September ahead of the busy holiday season.
As of its last annual report, the Cupertino, California-based company had about 154,000 full-time equivalent employees.