Apple suffered a weak iPhone quarter, which prompted the tech giant to cut down on salary increases for its retail workers for this year.

The situation comes as the coronavirus pandemic created an inflated consumer economy, particularly around consumer electronics. Many devices, including the iPhone and iPad products, sold very fast. This provided more profits for the company, which, in turn, trickled down to employees via bonuses and raises.

Apple To Cut Salary Increases

A recent report noted that Apple has shifted back to standard raise amounts in 2023 amid slowing economic conditions. Retail workers are experiencing raises of around 2% to 5% in 2023, which is half as good as the 2% to 10% increases in 2022.

Salary increases are also being applied to retail and AppleCare technical support, and the company is known to apply raises during employee reviews. These typically begin sometime in September and run into early October.

Last year, the higher salary increases were accompanied by a boost to minimum wages to $22 from the previous $20. These benefits were also given in a year when unionization efforts were fresh, and labor shortages threatened businesses, as per Apple Insider.

The recent report also noted that this year has seen a cooling off of unionization efforts, less overall inflation, and a shrinking smartphone market. These factors all likely contributed to the reduced salary increases the company is handing out to its retail workers.

The tech giant's decision to cut back on salary increases comes as its iPhone 15 starts to go on sale. Initial reports suggest a high demand for the new iPhone, and the company will not be hurt when earnings are shared for the quarter.

However, Apple is facing other issues in other areas, such as in France, where Apple Stores in the region are calling for a strike on Friday and Saturday which is the release of the new iPhone 15, over salary demands.

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Apple's Quarterly Performance

In a statement, the CGT Apple Retail union said on X, formerly known as Twitter, that as management continues to ignore their demands and concerns, they will call for strike action, according to Euronews.

The call to strike, which many believe will affect the majority of the 20 Apple Stores in the country, will also be marked by a demonstration held outside of the Opera Apple Store in Paris. This is one of the Apple brand's flagship stores.

Additionally, Apple's revenue slipped 1% on Thursday and went down to $81.8 billion for its quarter that ended on July 1. This marks the third consecutive year-over-year drop in quarterly revenue for the world's most valuable company.

However, there were some silver linings as the company said its services revenue reached a new all-time high of $21.2 billion. The services business includes Apple Music and Apple TV+ and is seen as an increasingly important source of revenue for the tech giant, said CNN.

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