Apple Reduces the Rate of Raises Given to Retail Employees Following Weak iPhone Quarter

Apple is reducing the raises it gives to retail employees following an iPhone quarter that did not perform that well. It is not only the smartphone market that is experiencing a slowdown but also the general economy.

Apple Decided to Lower Employee Raises Amid Smartphone Market and General Economy Slowdown

According to Apple Insider, both the smartphone market and the general economy have experienced a slowdown after the pandemic. It was reported that Apple reacted by making a decision to lower the raises it gives to employees.

That would mean that compared to 2022, Apple employees would receive lower raises. It comes as the pandemic resulted in the creation of what was described as an "inflated consumer economy," which significantly affected consumer electronics.

The sales of these electronic devices like the iPhone and iPad, which sold fast, gave Apple more profits, allowing the company to give employees bonuses and raises. According to Bloomberg, Apple has decided to shift back to its standard raise amounts this year as the economy's conditions seem to slow down.

Apple Employees Will See Raises at 2% to 5% This Year, Lower Than Last Year's Rate

It was reported that Apple retail employees will be seeing raises at around 2% to 5% this year, which is lower compared to the 2022 retail employee raises at 2% to 10%. These raises would specifically affect the retail and AppleCare technical support employees.

Apple reportedly gives raises to its employees when it does its company employee reviews, which are scheduled around September to October. In 2022, it was reported that the higher raises go hand in hand with a boost to minimum wages.

Apple Increased Its Minimum Wage From $20 to $22

Apple increased its minimum wage from $20 to $22 last year, and the benefits were also given in a year when labor shortage was a threat and unionization efforts were still new. This year, the unionization efforts were seen to cool off, with the overall economy slowing down.

These factors likely contributed to the reduced raises, particularly the smartphone market shrinking. With all these factors combined, Apple decided to reduce its raises, affecting its retail and AppleCare technical support employees.

Apple Recently Released iPhone 15 to the Market

This news about Apple lowering its raises given to retail employees emerged a few days after the iPhone 15 series was released. According to initial reports, there is an expectation that the iPhone 15 could garner a higher demand, potentially leading to more sales.

As of press time, it's still not confirmed whether Apple will keep the new rate of raises this year or make adjustments in the future. However, since the iPhone 15 series was only announced a few days ago, it could take a while before Apple reveals the company's overall performance, which includes the sales of its latest smartphones.