Will Apple Follow Tech Peers In Announcing A Mass Layoff This Week? Analyst Says iPhone Maker In A 'Unique' Position

Zinger Key Points
  • Apple remains in a unique situation to withstand this economic storm better than its tech peers, says Wedbush.
  • The firm expects the company to be more prudent around its guidance for the first half of the year.

Apple Inc. AAPL would lead the week's big tech earnings news flow, with the company scheduled to report on Thursday after the close.

No Massive Layoffs: The most widely seen tech theme of recent times — massive layoffs — may be absent from Apple’s scheme of things, analyst Daniel Ives said in a note. The tech giant will likely cut some costs around the edges, said the analyst. But he does not expect a mass layoff from Apple this week.

See Also: Everything You Need To Know About Apple Stock

Delving on the earnings per se, Ives said the company’s fiscal year first-quarter earnings report will give a glimpse into the overall demand story for consumers globally and a snapshot of the alleviation in China supply chain issues.

iPhone 14 Pro demand, according to the analyst, is holding up firmer than expected. The analyst expects the Street to be laser-focused on CEO Tim Cook’s commentary for the March and June quarters. He expects Apple to be more prudent around its guidance for the March quarter.

Ives reiterated his view that Apple remains in a unique situation to withstand this economic storm better than its tech peers.

Why It’s Important: Ives' view that Apple may not announce large-scale job cuts should come as a welcome relief for its employees. Several of Cupertino’s big tech peers have been cutting jobs en masse.

Amazon Inc. AMZN announced another round of mass layoffs earlier this year, affecting 18,000 employees. Microsoft Corp. MSFT said it plans to let go of 10,000 personnel and Alphabet Inc. GOOGL GOOG disclosed plans to cut 12,000 jobs.

Price Action: Apple ended Friday’s session up 1.37%, at $145.93, according to Benzinga Pro data.

Read Next: Can Apple's MR Headset Supplant iPhone As Its 'Hallmark Product'? Gurman Offers 3 Tips To Avoid A 'High-Profile Flop'

Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: Analyst ColorNewsTop StoriesAnalyst RatingsTechApple ChinaDan IvesiPhone 14Tim CookUS Job CutsWedbush
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!