5 Most Important Tech Layoffs to Watch

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Apple Inc. (NASDAQ:AAPL) laid off several contract-based recruiters mid-August as it is implementing a hiring freeze and controlling costs. Apple Inc. (NASDAQ:AAPL) has let go of 100 contract workers, which is indicative that a slowdown is underway at the tech giant. The layoffs occurred at Apple Inc. (NASDAQ:AAPL)’s California, Texas, and Singapore offices. 

On August 29, Wedbush analyst Daniel Ives maintained an Outperform rating on Apple Inc. (NASDAQ:AAPL) and a price target of $220 on the shares. He cited resilient demand for iPhone 14 ahead of its release next week on September 7. In particular, the analyst believes Apple Inc. (NASDAQ:AAPL) is expecting another heavy iPhone Pro and Pro Max mix shift, which is a strong positive for ASPs heading into 2023. 

According to Insider Monkey’s data, 128 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL) at the end of June 2022, compared to 131 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the biggest shareholder of the company, with a position worth $122.3 billion.

In its Q2 2022 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:

“Apple Inc. (NASDAQ:AAPL) grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple Inc. (NASDAQ:AAPL) is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”