Apple has reportedly approved $200 million in out-of-cycle bonuses for its iPhone hardware engineers, a move aimed at curbing AI brain drain to rivals like OpenAI and Meta. The strategy mirrors a 2021 attempt to counter poaching, though competitors continue luring talent with blockbuster offers, such as the $200 million package that snagged a former Apple designer. Key departures, including industrial designer Abidur Chowdhury—creator of the iPhone Air—who joined AI startup Hawk AI, highlight the challenge.

Apple’s hardware team faces intensified competition as firms like OpenAI, backed by Jony Ive’s Products io, and Snap poach engineers working on cutting-edge projects like the Vision Pro. While employee turnover remains a natural industry phenomenon, Apple’s bonuses reflect a desperate bid to retain expertise critical to its foldable iPhone’s 2026 launch. Churn rates at Apple allegedly lag behind rivals, suggesting the crisis may be overstated. Nonetheless, the tech giant’s reliance on iPhone hardware innovation underscores the stakes in its battle for top-tier talent.