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Speaker 1: We're told that Apple plans to slow hiring and spending

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Speaker 1: next year and some of its divisions to cope with

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Speaker 1: potential economic downturn. And breaking the story was Mark German,

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Speaker 1: Bloomberg Technology reporter. He joins US Live. So congrats Mark

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Speaker 1: on a on a scoop story that that did play

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Speaker 1: big in the markets. But it's it's what's interesting I

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Speaker 1: think is that, as you say, it's not really across

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Speaker 1: the board, some divisions will be affected more than others.

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Speaker 1: Let me start off by asking with this touch research

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Speaker 1: and development. Yeah, books, so much for having me. Great

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Speaker 1: to get that story out there for our readers. So

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Speaker 1: these spending cuts are going to apply to hiring specifically

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Speaker 1: as well as budgets, and in some cases those budgets

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Speaker 1: could apply to R and D. Now a portion of

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Speaker 1: Apple's R and D budget is people, right, So if

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Speaker 1: you want to look at it that way, that that

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Speaker 1: is that is the case. So definitely across several teams

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Speaker 1: across Apple right globally, Um, maybe not there more advanced

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Speaker 1: teams for let's say developing their augmented reality and virtual

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Speaker 1: reality efforts, or perhaps their autonomy efforts and artificial intelligence,

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Speaker 1: but some of the more, you know, legacy businesses, maybe services,

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Speaker 1: maybe hardware, maybe software. You might see some of the

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Speaker 1: spending growth decline there, and perhaps why we we saw

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Speaker 1: such moves in the US on the back of that story, Mark,

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Speaker 1: I wonder you know, obviously a headline like that, a

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Speaker 1: spending slowdown, hiring slowdown is something that could move the market,

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Speaker 1: But why is it so rare? Is it rare an

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Speaker 1: Apple for them to do something like this, It's incredibly

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Speaker 1: rare for Apple. I've covered the company probably for I

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Speaker 1: don't know, twelve thirteen, I can't remember at this point years,

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Speaker 1: and there's only been a few times that I've been

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Speaker 1: aware of such slowdowns. Uh. There was a little bit

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Speaker 1: of a slowdown pre when the iPad came out. Remember

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Speaker 1: the economy was on doing so hot in the US

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Speaker 1: during that time after oh eight, Uh, and then you

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Speaker 1: saw an iPhone sales slow down at the beginning of

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Speaker 1: calendar and so there was a bit of a hiring

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Speaker 1: slowdown then too. But this is pretty rare for this company.

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Speaker 1: Apple historically does not to layoffs. They've probably laid all

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Speaker 1: fewer than a thousand people over the last twenty years, right,

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Speaker 1: That is minimal comparatively yeah. I mean, given what we

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Speaker 1: saw from Microsoft and and Facebook meta, uh, it's not

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Speaker 1: too surprising Um and the market. I don't think we

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Speaker 1: can read too much into the two percent downturning Apple

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Speaker 1: because the stock had really had a lot of momentum

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Speaker 1: here of late. We mentioned it was down seventy year

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Speaker 1: to day, but it did go from one fifty and

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Speaker 1: a pretty short period. The Apple has had momentum, and

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Speaker 1: you typically see this ahead of their fall products season,

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Speaker 1: So September October November is going to be a really

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Speaker 1: intense time for Apple product wise, and obviously products are

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Speaker 1: WHI drive the stock. You're going to see four new

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Speaker 1: iPhone fourteen models around mid September. And the interesting thing

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Speaker 1: there is, for the first time on the cheap so

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Speaker 1: they have their cheap phones and their high end pro

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Speaker 1: phones right on the cheaper phones. For the first time,

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Speaker 1: you're gonna be able to take an iPhone with the

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Speaker 1: biggest screen size. So that's gonna do pretty well I

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Speaker 1: think in China and in Africa and Europe and some

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Speaker 1: of the markets where you're a one device type of

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Speaker 1: consumer where they only have one product to be their computer,

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Speaker 1: to be their phone, be their iPad, and whatnot. So

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Speaker 1: that's going to probably do really well, and I think

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Speaker 1: some investors are excited about that. You might see an

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Speaker 1: introduction early next year of their upcoming virtual and augmented

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Speaker 1: reality headset. The Apple Watch is going to get a

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Speaker 1: big update in the fall as well with an Apple

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Speaker 1: Watch Pro. Okay, we got it. There's still a lot

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Speaker 1: of momentum there, Mark, but excellent reporting, Thank you very much.

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Speaker 1: Mark German, Bloomberg Technology Reporter,