With an economic slowdown, Apple is scheduled plans to reduce employment announces results this week which results negative on Apple stocks . The corporation also claims to be a health tech pioneer. There is still a need for a Mac-like approach, even with Apple’s new iPad Stage Manager multitasking function.
The Economical Impacts on Apple
Apple Inc. is being overtaken by the economy. After a long period of being protected from external variables like rising inflation, rising interest rates, a soaring US currency and recession fears, the corporation again seems vulnerable. That’s why Apple stocks seems vulnerable.
To prepare for a downturn, I wrote last week about Apple’s intentions to cut down on expenditure and staffing in several departments next year. The company’s fiscal third-quarter revenues are expected to be around the same as last year, according to most analysts. Apple’s supply chain also has some flaws, which might restrict the availability of some of its upcoming gadgets in the future.
The recruiting freeze means that Apple will not replace certain positions when people depart and will maintain the number of staff on some teams the same.
Tesla Inc., Meta Platforms Inc., and Microsoft Corp. have all announced layoffs, but the corporation isn’t going that far. For the time being, Apple is avoiding layoffs and hasn’t made a public declaration about its strategy. However, I expect Apple to make a statement on the matter during Thursday’s earnings conference.
Sales growth is likely to slow significantly in the report’s actual findings. Analysts expect sales to rise by just 2% from a year ago, the weakest rate of growth since 2020. Apple stocks witnessed a 36% increase in the third quarter of 2021, compared to that of the previous quarter.
Apple’s Stock Price Today
Covid-19 Impact on Apple stocks
To begin, the business has previously said that supply issues resulting from Chinese lockdowns. The chip shortfall would result in a $4.2 billion to $8.5 billion reduction in last quarter’s top line. It also damages the price of Apple stocks.
Second, the comparison is difficult. People who were setting up home offices because of the epidemic spent a lot of money in the third quarter of 2021. As a result, sales of the Mac and iPad increased significantly.
When it was first unveiled in September, Apple’s new MacBook Air didn’t arrive for another three months. Many people were waiting for the new MacBook Air model. It is before purchasing one of Apple’s most popular Macs, the MacBook Air.
As a result of the current economic uncertainties, many individuals may be reluctant to invest on new Apple items. Instead of springing for the newest gadgets right away. People may wait until the autumn to get their hands on the iPhone XS, AirPods Pro, Apple Watch Series 4, and iPad Pro.
It will only get more difficult if the economy goes into a downward spiral. Financial institutions already reduced their Apple stock price by around $10 per share as a result of these considerations.