Business Briefs – January 25, 2016

Apple’s iPhone Success May Be Reaching Its Peak

SAN FRANCISCO (AP) — Apple could soon face one of its biggest challenges to date: Peak iPhone.

There are signs that iPhone sales in the first three months of 2016 will — for the first time ever — show an abrupt decline from the same period a year earlier.

That could mark a pivotal moment for the Silicon Valley giant, which makes most of its money from iPhone sales.

The iPhone contributed nearly two-thirds of Apple’s $234 billion in revenue last year. None of the other new products Apple has launched in recent years have emerged as blockbusters.

Twitter Parts With 4 Key Execs In Latest Sign of Turmoil

SAN FRANCISCO (AP) — Four of Twitter’s key executives are leaving the company in an exodus that has escalated the uncertainty facing the messaging service as it struggles to broaden its audience and lure back disillusioned investors.

Twitter CEO Jack Dorsey announced the management shake-up late Sunday. The departures were characterized as voluntary, by both Dorsey and three of the four exiting executives.

The upheaval leaves Twitter without its top engineering executive, top products executive, its head of human resources and leader of the company’s media partnerships.

Hilton Launches New Budget Hotel Chain Aimed at Young Guests

LOS ANGELES (AP) — Hilton is launching a new hotel brand, focusing on budget travelers looking to spend $75 to $90 a night.

The new brand, named Tru, aims to compete with economy and midscale chains like Comfort Inn, Fairfield Inn and La Quinta.

Hilton Worldwide — which has more than 4,500 hotels globally — already has “limited service” brands like Hilton Garden Inn, Hampton Inn, Homewood Suites and Home2 Suites. This would be a new market for the chain.

Hilton CEO Chris Nassetta notes that 40 percent of the demand for hotel rooms comes in this price segment, the largest of any market.

Sprint Cutting 2,500 and Closing Call Centers to Cut Costs

NEW YORK (AP) — Cellphone company Sprint is eliminating more jobs as it seeks to cut costs and turn around its business.

Sprint spokesman Dave Tovar says the country’s No. 4 wireless service provider has cut about 2,500 jobs since last fall, or about 8 percent of its workforce. Last week, it notified employees at six customer service centers around the country that it would be closing those locations or reducing the staff there.

The latest round of layoffs follows 2,000 job cuts announced in November 2014.

Shares of the Overland Park, Kansas-based company are down about 39 percent in the past 12 months. The stock dropped more than 12 percent Monday to close at $2.51.

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