Amid dismal reports that iPhone sales are currently in a slump (and Apple’s confirmation of them via its multi-billion dollar quarterly revenue downgrade this month), the company’s top-brass has signaled that it plans to cut back hiring in several divisions this year, however, recruiting efforts are expected to increase aggressively in more revolutionary ones. All things considered, the iPhone sales slowdown we see unfolding now is actually a major opportunity for new innovation.
Tim Cook, Apple’s Chief Executive Officer, reportedly disclosed the news in comments made to his employees during an all-hands meeting held earlier this month where, according to sources familiar with the matter, Cook was asked whether slowing iPhone sales would prompt a hiring freeze at Apple.
In response to the query, Cook reportedly said that while Apple is planning to reduce hiring in “some divisions,” those hiring cutbacks will not be company-wide. Although Bloomberg, in its reporting, pointed out how the CEO’s yet to determine which segments of his company will be impacted by the policy change.
According to sources, however, Cook ultimately did confirm that “key teams” such as artificial intelligence (AI) and Siri development at Apple would continue “aggressively” recruiting new workers.
Most importantly, the change to Apple’s hiring policy will not affect the company’s
A Time to Learn and Grow
Immediately following the meeting where Cook disclosed this news to his employees, several Apple Senior VPs allegedly held subsequent meetings with colleagues and subordinates in their division to emphasize that the iPhone sales slump is actually an “opportunity for new innovation” at Apple, according to Bloomberg’s sources.
Cook, in a separate memo to employees issued after the same meeting, appeared to echo those sentiments, too, suggesting that “external forces” are not an excuse for Apple’s present iPhone sales slump — but that the experience “gives us an opportunity to learn and to take action.”
While Cook noted that slumping iPhone sales are the main factor fueling AAPL’s volatile performance and historic $9 billion Holiday quarter revenue downgrade, he pointed optimistically to the company’s thriving Services business — noting it’ll be a key aspect of AAPL’s future growth potential, having surpassed $10.8 billion in revenue this quarter, even as iPhone sales took a dip.