Cutting an $Apple(AAPL)$🍎

We have seen several big tech companies moved to "cut the fat" regarding workforce and reduce hiring.  Apple is late in the game and doesn't want to left out. 

-Tesla laid off 10% of workforce 

-Netflix laid off 300 more employees in 2nd round of job cuts 

-Microsoft cuts a small portion of workforce. (<1%)

Apple is no different and wants to decelerate spending.  This is prudent in face of potential decreasing revenue in the few challenging quarters ahead. 

It's just like us - If we can't increases our salary when daily costs increase, then we have to learn to save more to makeup the difference.

Some tech companies have downright cut a (small) portion of workforce, while Apple has only declared a reduced rate in hiring, which is conservative. 

- This could be strategic. They could use the saved budget and improve compensation of existing employees to retain them in the increasingly tight labour market. 

- Advertising is also another area that gets cut first in a recessionary environment. 

28 July Q3 2022 Earnings 

It's almost expected to see a revenue hit due to Russia-Ukraine war, supply constraints and COVID lockdown in China. Apple warned of a 4-8 billion revenue hit! [Blush] 

- Analysts expect revenue around $82 billion and earnings per share of $1.16. Growth is still expected Y-o-Y.  Apple revenue and gross margins remained up until Q2 2022 (Plot below).

- Despite the headwinds, it does not automatically mean Apple will miss estimates and disappoint. In any case, a hiring cut shows that it is looking ahead and taking proactive actions to ensure profitability in the harsh macro environment. 

It's anyone's guess whether we get Apple Juice or Apple Money Tree on the 28 July, but in my opinion Apple remains a dominant leader in mobile and consumer electronics. 

@TigerStars@MillionaireTiger@Daily_Discussion