Tech giant Apple has reportedly laid off approximately 100 employees from its digital services group as the company adjusts shift to strategic priorities.
The affected roles include some engineering roles, with the biggest cut coming from the team responsible for the Apple Books app and Apple Bookstore. Also, layoffs were conducted in other service teams, including the one responsible for Apple News.
Although Apple Books is now said to be a lower priority and won’t be a major component of Apple’s services strategy, it will continue to receive several updates. On the other hand, despite recent staff reductions, Apple News continues to be a major focus for the company.
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Apple’s services division, which encompasses Apple Music, Apple News, and Apple TV+, has grown increasingly crucial, contributing over 22% to the company’s revenue in fiscal 2023. This growth has provided a buffer against the slowing demand for Apple devices.
While Apple typically experiences few layoffs, the company has so far executed at least four rounds of job cuts in 2024. Recall that earlier this year, the tech giant let go of hundreds of employees following the cancellation of its self-driving car and microLED display ventures. Additionally, it suspended work on its next high-end Vision headset and shuttered a project to design and develop its own smartwatch displays earlier this year.
Notably, the Cupertino giant has been facing headwinds in China, its third-largest market, since last year, where sales declined 6.5% last quarter. Several factors contribute to this downturn in the Asian country. Firstly, Apple is grappling with increased competition from local smartphone manufacturers like Huawei, Xiaomi, and Oppo, which offer feature-rich devices at lower price points, making it harder for it to maintain its market share.
Following intense competition from smartphone makers in China, Counterpoint Research revealed that iPhone sales in the country declined by 24% over the first six weeks of 2024. Apple has been resorting to discounts to prop up sales and better compete with the likes of Huawei, which has been gaining ground in the high-end of the market.
The tech giant is set to unveil the latest iteration of its flagship iPhone on September 9, with generative Artificial Intelligence capabilities. The event-themed “It’s Glowtime,” will include the launch of the iPhone 16 series, alongside new versions of the Apple Watch and AirPods. The new iPhone 16 models will be equipped with advanced AI features integrated directly into iOS 18, enhancing the overall user experience. The iPhone 16 will headline Apple’s Al push, amid growing hopes that Al will help reignite growth after over a year of declining device sales.
These Al advancements, often referred to as “Apple Intelligence,” will enable users to experience more personalized and context-aware functionalities.
