Apple will reportedly cut back on hiring for some divisions after lower-than-expected iPhone sales and missing its revenue forecast for the holiday quarter, Bloomberg says citing a source.
Per the report, Chief Executive Officer Tim Cook made the disclosure to employees earlier this month in a meeting the day after he penned a letter to investors about the company’s recent struggles, particularly in China and said some divisions would reduce hiring.
Simultaneously, earlier this month, it was also reported that iPhone shipments in India have fallen by as much as 50 percent since last year and that this is the lowest the sales have been in at least four years.
Other reports also indicate that Apple is, for the first time, getting third-party sellers to offer discounts on its products. iPhones in China and iPad Pros and HomePods in the US have been discounted by $100.
Apple blames its poor performance on market factors like the ongoing US-China trade war and the fact that people are holding on to their ($999) iPhones for longer. Apple also claims that last year’s battery replacement program affected sales. Several analysts believe that the poor performance is simply a result of Apple’s devices being extremely expensive. In a market like India, where Apple’s expensive devices sell at an additional 30-40 percent premium, it’s to be expected that sales will drop.