Source – linkedin.com
Taiwan’s Foxconn, Apple’s largest manufacturing partner, has recently hired approximately 50,000 new workers at its massive Zhengzhou factory in China. This hiring surge comes as the facility prepares to ramp up production for the highly anticipated iPhone 16, set for release in the second half of this year, according to reports from local media, including China Business News.
Boosting Recruitment with Higher Wages and Bonuses
In late July, Foxconn launched a major recruitment campaign, advertising job openings on popular job sites and social networking platforms. To attract workers, the company has increased the hourly wage to 25 yuan (about 4,800 won) and offered bonuses of up to 7,500 yuan, a significant rise from the 6,000 yuan bonuses offered the previous month. This period, from August to December, is traditionally the peak season for iPhone shipments, and Apple has set an ambitious goal of shipping 90 million units of the iPhone 16, a 10% increase from last year.
Strategic Expansion Amid Relocation Rumors
Foxconn’s Zhengzhou factory, known as the world’s largest iPhone production base, is critical to meeting Apple’s elevated shipment targets. The company’s recent hiring efforts highlight its commitment to maintaining production levels, despite ongoing speculation about Foxconn potentially relocating its manufacturing operations out of China—a claim the company has denied. On July 24, reports surfaced that Foxconn plans to build a new business headquarters in Zhengzhou, investing approximately 200 billion won ($148 million).
Competitive Pressures in the Chinese Smartphone Market
Apple, which secured the top spot in China’s smartphone market in the fourth quarter of last year, faced a 19.1% drop in sales in the first quarter of this year, slipping to third place behind local competitors Vivo and Honor. This decline in sales has increased pressure on both Apple and Foxconn to ensure a successful launch and robust sales for the iPhone 16.
Foxconn’s critical role in global manufacturing, particularly for Apple, underscores its influence on the global supply chain. The decision to increase wages and bonuses reflects the competitive labor market in China, especially in major manufacturing hubs like Zhengzhou. As Foxconn continues to play a pivotal role in Apple’s production, its strategies and operations remain closely watched in the highly competitive Chinese smartphone market.
