Apple (NASDAQ:AAPL) is expected to disclose fiscal third-quarter earnings on July 28, but all eyes will be on demand, especially with the iPhone 14 set to come in the fall, according to Wedbush Securities on Tuesday.
Every year, iPhones are the most anticipated smartphones. Apple has already revealed its iPhone SE 2022, iOS 16, and a plethora of other computer gadgets this year. All eyes are now focused on the highly anticipated iPhone 14 series. The premium flagship next-generation smartphones have generated the necessary buzz in the run-up to its formal launch, which is scheduled for September. Unfortunately, there is a setback for those who have been anticipating the top-tier iPhone 14 Pro Max or the new iPhone 14 Max. According to a recent source, the smartphone will be in short supply when it is released.
Analyst Dan Ives, who rates Apple (NASDAQ:AAPL) shares as outperforming, stated that demand for the iPhone is holding up a little better than predicted but that there will still be some weakness, as Wall Street anticipates. Ives also stated that the iPhone 12 and iPhone 13 product cycles helped Apple (NASDAQ:AAPL) win around 3% of the Chinese smartphone market in the last year. Analysts predict that Cupertino, California-based Apple (NASDAQ:AAPL) will earn $1.15 per share on $82.77 billion in revenue for the quarter.
In a note to customers, Ives revealed that “Apple is continuing to focus on a robust product pipeline and services ramp into 2023 including what we believe will be the highly anticipated AR/VR headset release,”.
Apple’s Reduction Strategy
Apple (NASDAQ:AAPL) shares jumped roughly 1.5% in early trade to $149.18. Separately, TF International Securities analyst Ming-Chi Kuo tweeted on Tuesday that some iPhone 14 suppliers are experiencing difficulties but that this will have only a “limited impact” on the mass production of the next iPhone because “other suppliers can fill the supply gap.”
On Monday, it was reported that Apple (NASDAQ:AAPL) is planning to reduce recruiting in certain areas of the company as the economy softens in the second half of the year and into 2023. Apple (NASDAQ:AAPL) looks to be joining a group of tech behemoths that are, at the very least, putting a halt to hiring plans due to fears about a potential slowdown in the US economy.
Apple (NASDAQ:AAPL) stated that the decision to restrict recruiting is not a companywide strategy and would be implemented in different business units based on product sales, supply chain challenges, and consumer demand. According to Bloomberg, the changes would not affect all of Apple’s (NASDAQ:AAPL) teams, and the company will continue to develop products aggressively through 2023.
The corporation also aims to not file certain open positions and will evaluate such circumstances on an individual basis. The business is slated to disclose its fiscal third-quarter results on July 28, and Wall Street analysts expect Apple (NASDAQ:AAPL) to earn $1.15 per share on almost $83 billion in revenue.
If Apple (NASDAQ:AAPL) begins hiring at a slower-than-usual rate, it will join a clutch of high-profile tech businesses that have recently adjusted their employment plans. Google parent Alphabet (NASDAQ:GOOGL) announced last week that it would slow hiring for the remainder of 2022, and Microsoft (NASDAQ:MSFT) revealed it had lost a modest number of employees totaling less than 1% of its staff. In other sectors, slow hiring and laying off workers is a challenge as popular crypto outfits have adopted this strategy.
Microsoft (NASDAQ:MSFT) President Brad Smith stated on Monday that the United States is in a “new era” of employment, with much fewer job searchers joining the American labor force and probable higher wages to entice workers.
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