Apple’s cutting spending, but it shouldn’t affect production
Kuo states that his latest checks show there have been no significant changes to Apple’s hardware development plans for 2023. In fact, the situation looks almost unchanged regarding the next 18-24 months of supply. The information suggests that while Apple may be implementing a more cautious approach when it comes to spending and hiring, it’s still full steam ahead with its hardware plans for the foreseeable future.This lines up with Bloomberg’s recent report, which mentioned the company’s plans for an “aggressive product launch schedule” next year. The most important product expected to arrive within the next 12 months is Apple’s first mixed reality headset.
Apple is looking to reduce headcounts and spending across some teams
While it’s unclear which teams will be directly impacted by Apple’s more cautious spending plans, Bloomberg reported that the company is giving some divisions lower-than-expected budgets for next year. The main impacts of this include a refusal to increase the headcount next year for certain groups, compared to the usual trend of adding between 5% and 10% more employees.
Lots of products are coming at the end of 2022
While the focus is increasingly shifting towards next year, Apple is planning a massive range of new products for release by the end of 2022. These include three new Apple Watch models, one of which could cost as much as an iPhone, revamped MacBooks, and a new Apple TV.
Of course, the biggest arrival will be that of the iPhone 14. Ming-Chi Kuo reported earlier today that some supply chain issues are being experienced in relation to memory chips and display panels. However, the overall impact on production should be limited.