Apple plans to cut back on hiring after selling fewer iPhones than expected

Apple sold fewer iPhones than expected in holiday season; CEO Tim Cook told employees company will avoid hiring freeze.

Apple Inc. will cut back on hiring for some divisions after selling fewer iPhones than expected and missing its revenue forecast for the holiday quarter, according to people familiar with the matter.

Tim Cook, Apple’s chief executive officer, 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. During the meeting, Cook was asked if the company would impose a hiring freeze in response. He said he didn’t believe that was the solution. Instead, Cook said some divisions would reduce hiring, according to the people, who asked not to be identified discussing private matters.

Cook said he is yet to fully determine which divisions would cut back on hiring, but said that key groups such as Apple’s artificial intelligence team would continue to add new employees at a strong pace. He also emphasized that a division’s importance to Apple’s future isn’t measured by hiring rates.

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An Apple spokesman didn’t respond to a request for comment. Apple has been on a hiring spree in the past decade, but the pace of headcount growth has slowed in recent years. The company added about 9,000 workers in its most-recent fiscal year for a total of 132,000. A year earlier, Apple added roughly 7,000 employees.

Apple shares slipped less than 1 per cent in extended trading on Wednesday. The hiring pullback won’t affect plans to open new offices in Austin, Texas, nor expand in the Los Angeles area, where Apple is building out its original video content team, the CEO also said.

Following Cook’s talk with employees, some Apple senior vice presidents held separate meetings with vice presidents, senior directors and other managers in their groups to emphasize that the iPhone sales slowdown is an opportunity for new innovation, according to one of the people.

On Jan. 2, Apple cut revenue guidance for the holiday quarter to $84 billion from between $89 billion and $93 billion. That was the first time Apple reduced its sales forecast in almost two decades. The company blamed the lower outlook on weaker iPhone sales due to economic and industry headwinds, mostly in China.

The Cupertino, California-based technology giant also said iPhone upgrades were not as strong as expected in some developed markets because of fewer carriers subsidizing phone purchases, higher prices and consumers holding on to older iPhones longer due to cheaper battery replacements.

In a memo to employees after the announcement, Cook told staff that he wouldn’t use "external forces" as an excuse. "This moment gives us an opportunity to learn and to take action," he added.

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Apple ropes in Nokia veteran Ashish Chowdhary to lead India operations

Chowdhary has held various leadership positions, including Head of Asia Middle East and Africa and prior to that, Head of Global Services Business Unit.

In a fillip to Apple CEO Tim Cook's big future plans for the Indian market, Apple has appointed Ashish Chowdhary, Chief Customer Operations Officer at Nokia Networks, as its India operation head, the Cupertino-based iPhone maker said on Tuesday.

A veteran at Nokia, Chowdhary will take over as Apple India head from January next year, the company confirmed to IANS.

The decision to hire Chowdhary is a testament to the fact that Apple is aiming for a real long-term growth in a price-sensitive market where Apple is an aspirational brand and usually bought by those who have high spending power or can go for older generation phones for affordability.

In line with the development, Nokia also announced on Tuesday changes in the composition of its group leadership team, declaring that Chowdhary will "leave Nokia at the end of 2018 after 15 successful years.

ALSO READ: As iPhone demand wanes, Apple has plan B, but suppliers don't

"Chowdhary will continue to lead Customer Operations and remain a member of the Nokia Group Leadership Team until the end of 2018. He will then leave Nokia to take a leadership position in another company," said Nokia.

Apple has roped in Chowdhary -- who has a sound global as well as local knowledge of the industry -- to get a bigger slice of a market that has nearly 450 million users and is one of the fastest growing after China and the US.

Apple India is currently under Michel Coulomb who took over from Sanjay Kaul in December last year.

Chowdhary has 25 years of international experience in the enterprise and telecom sectors. As Chief Business Officer, he was responsible for Nokia Networks' sales and operations globally.

He has held various leadership positions, including Head of Asia Middle East and Africa and prior to that, Head of Global Services Business Unit.

Both these units contributed nearly half of the company's revenues and were key to the successful transformation of Nokia.

The appointment comes at a time when the iPhone maker is seeking tax relief and other incentives from the government to begin assembling more handsets in the country and its proposal to set up a manufacturing unit is also being evaluated.

Breaking his silence on Apple's India presence, CEO Tim Cook admitted on November 1 that his business was flat in the country in the fourth quarter amid weak currency trends.

Cook, however, stressed he is still a big believer in the Indian middle class.... Read More

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Apple launches new iPad with iPhone XS features at New York event

Apple also unveiled new Mac computers, including a MacBook Air laptop with a high-resolution screen.

Apple's new iPads will more closely resemble its latest iPhones as they ditch a home button and fingerprint sensor to make more room for the screen.

As with the latest iPhone models the XR and XS the new iPad Pro will use facial-recognition technology to unlock the device and to authorize app and Apple Pay purchases.

Apple also unveiled new Mac computers, including a MacBook Air laptop with a high-resolution screen.

Tuesday's announcements took place at an opera house in New York, where the company was emphasizing its products' ability to create music, video and sketches. Neither the Mac nor the iPad generates as much revenue for Apple as iPhones.

Tablet sales have been declining overall, though Apple saw a 3 percent increase in iPad sales last year to nearly 44 million, commanding a 27 percent market share, according to research firm IDC. Apple has been promoting its high-end iPad Pro as ideal for artists, photographers and other creators.

The iPad changes are likely enough to drive continued growth in tablet unit sales for Apple, said D.A. Davidson Co. analyst Tom Forte.

"The company is doing a nice job of rolling out next generation devices with features customers want to sustain momentum."

The smaller of the two new Pros will have a larger display, with an 11-inch screen rather than 10.5 inches, as measured diagonally. For the larger, 12.9-inch model, Apple is fitting the same-size display into a smaller device about the size of a standard sheet of paper.

The new iPads will have an LCD screen similar to the iPhone XR rather than the more vibrant one found in the top-of-the-line iPhone XS models. The displays on the new iPads don't run to the edges as much as they do on the iPhones.

The new iPads start at about $800.

An optional companion pencil will now be able to attach magnetically to the iPad for storage and charging.

Apple is bringing a high-resolution display to its low-end MacBook Air, something until now limited to pricier models such as the MacBook Pro products.

But the starting price is now about $1,200, $200 more than before. The Air also joins higher-end Pros in sporting a fingerprint sensor, something the iPad just lost.

Apple also announced an updated desktop computer, the Mac Mini, starting at about $800... Read More

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