Aug 14, 2024 04:58 AM
BUSINESS
Extra Jobs and Higher Wages at Foxconn’s iPhone City for Latest Model
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Foxconn employs about 100,000 workers at the Zhengzhou plant during the off-peak season
Foxconn is recruiting extra workers and offering higher wages at its Zhengzhou facility, the world’s largest iPhone factory in central China’s Henan province, in preparation for the September launch of Apple’s latest devices.
Since late July, Foxconn has raised its hourly rate in Zhengzhou to 26 yuan ($3.6), up from 21 yuan in June. The three-month full-time bonus has increased to 8,000 yuan from the previous 5,000 yuan, according to several recruitment agents.
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- Foxconn is increasing wages and hiring more workers at its Zhengzhou iPhone factory to prepare for Apple's new devices.
- The company employs approx. 100,000 during off-peak and up to 200,000 during peak periods; recent reports of recruiting 50,000 workers in July reflect normal seasonal activity.
- Facing declining iPhone sales and Apple's supply chain diversification, Foxconn is investing in electric vehicles and establishing new business units focused on EVs and robotics in Zhengzhou.
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Who’s Who
- Foxconn
- Foxconn, officially known as Hon Hai Precision Industry Co. Ltd., is ramping up recruitment and increasing wages at its Zhengzhou facility, the world's largest iPhone factory. The move is in preparation for Apple's new product launch in September. Foxconn employs about 100,000 workers off-peak, rising to 200,000 during busy seasons. Despite Apple's supply chain diversification to India, Foxconn is also investing in new ventures like EVs and robotics, including a new HQ in Zhengzhou.
- Hon Hai Precision Industry Co. Ltd.
- Hon Hai Precision Industry Co. Ltd., commonly known as Foxconn, is a Taipei-based contract manufacturer. It operates the world's largest iPhone factory located in Zhengzhou, China, employing 100,000 to 200,000 workers seasonally. Foxconn has diversified into electric vehicles and robotics, investing in new business units and headquarters in Zhengzhou. Despite Apple diversifying its supply chain to India, Foxconn remains a crucial player in high-end iPhone assembly.
- Apple Inc.
- Apple Inc. is preparing for the September launch of its latest devices, influencing labor demands at Foxconn's Zhengzhou facility. Despite global smartphone market growth, Apple's sales fell 1% in Q2 2024. The company has shifted part of its manufacturing to India since 2022 as it diversifies its supply chain.
- Samsung Electronics Co. Ltd.
- Samsung Electronics Co. Ltd. is mentioned as the top vendor in the global smartphone market, experiencing a 5% rise in sales during the second quarter of 2024, according to Counterpoint Research. This is in contrast to Apple's 1% decline in sales.
- Xiaomi Corp.
- Xiaomi Corp., a Chinese smartphone vendor, saw a significant growth in sales, jumping 22% year-on-year in the second quarter of 2024. This performance contrasts with Apple's 1% sales decline and reflects Xiaomi's strong position in the competitive smartphone market.
- Vivo Mobile Communications Co. Ltd.
- Vivo Mobile Communications Co. Ltd. is a Chinese smartphone vendor. According to a Counterpoint Research analysis, Vivo's sales grew by 9% in the second quarter of 2024. This indicates a positive performance in contrast to the overall decline in iPhone sales during the same period.
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What Happened When
- First years of 2012-2013：
- Foxconn's Zhengzhou factory had a peak season labor demand of nearly 300,000 people.
- Since 2022：
- Apple has shifted part of its manufacturing to India, diversifying its supply chain.
- January 2023：
- Foxconn set up a new energy vehicle subsidiary with a registered capital of 500 million yuan.
- June 2023：
- Foxconn unveiled a business unit in Zhengzhou with a registered capital of 1 billion yuan to focus on the development of EVs and batteries.
- Second quarter of 2024：
- Global smartphone market grew 6% year-on-year, Apple’s sales fell 1%, while top vendor Samsung Electronics Co. Ltd.'s sales rose 5%.
- June 2024：
- A company spokesperson told Caixin that Foxconn employs about 100,000 workers at the Zhengzhou plant during the off-peak season, which can increase to 200,000 during busy periods.
- Over the entire month of July 2024：
- According to a source, hiring 50,000 people is more accurate.
- July 2024：
- Foxconn signed a deal with the Henan provincial government to invest 1 billion yuan to build a new headquarters in Zhengzhou.
- Past two weeks before July 2024：
- Reports claim Foxconn has recruited more than 50,000 workers in Zhengzhou.
- Since late July 2024：
- Foxconn has raised its hourly rate in Zhengzhou to 26 yuan ($3.6), up from 21 yuan in June 2024.
- Late July to mid-August in previous years：
- The peak season when wages started to rise at Foxconn's Zhengzhou plant.
AI generated, for reference only
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