Apple tightens its belt a bit as recession fears grow

Apple tightens its belt a bit as recession fears grow

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Apple tightens its belt a bit as recession fears grow
Apple could be soon counting its pennies.
Photo: Jeff Weese/Pexels

Apple is preparing for a recession by slowing its growth in hiring and spending in 2023, according to information leaking from the company.

But the changes supposedly won’t affect every division of the iPhone-maker. And the company still plans to release many new products in 2023.

Slowing hiring and spending growth at Apple

With the war in Ukraine and lingering COVID problems driving up inflation, the head of the International Monetary Fund warned recently that we “face a global economic outlook that has darkened significantly.”

Apple is preparing for possibly slower sales in the coming months. “Apple Inc. plans to slow hiring and spending growth next year in some divisions to cope with a potential economic downturn,” reports Bloomberg.

Slowing growth in hiring and spending is a long way from layoffs and budget cuts. Still, Wall Street reacted negatively to the report. AAPL shares had been up slightly for the day but dropped about 1.5% on the news.

Apple has big plans for 2023

No matter what the global economy does, Apple will nevertheless release many new products in 2023. Bloomberg referred to the company’s “aggressive product launch schedule” for the coming year.

That includes the iPhone 15, which is expected to be the first with a USB-C port in place of Lightning. A Mac Pro and iMac Pro could be out next year, and a MacBook Air with an M3 processor. Plus, of course, the first Apple VR/AR headset is expected in early 2023.