Foxconn adds 50,000 workers in Zhengzhou plant as it prepares for Apple’s iPhone 16 launch

Foxconn is hiring more shift workers with higher wages at the world’s largest iPhone factory in the Henan provincial capital of Zhengzhou, ahead of the September launch of the 16th edition of Apple’s iconic smartphone.

The assembler, also known as Hon Hai Precision Industry, recruited more than 50,000 workers in Zhengzhou over the past two weeks, according to Chinese media reports.

The hourly wage at the factory has risen to 26 yuan (US$3.63) in August from 25 yuan in July, while a bonus of up to 7,500 yuan is on offer for returning staff with working experience at the plant, the National Business Daily reported, citing labour agencies.

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Foxconn, the world’s largest assembler of Apple’s electronic devices, operates factories in Shenzhen, Chengdu and Yantai, in addition to its hub in Zhengzhou.

A poster describing the qualifications for Foxconn workers in Zhengzhou on 22 February 2019: age between 16 and 40, nine-grade diploma, no Tibetan and Uyghur ethnicities. Photo: SCMP/Cissy Zhou alt=A poster describing the qualifications for Foxconn workers in Zhengzhou on 22 February 2019: age between 16 and 40, nine-grade diploma, no Tibetan and Uyghur ethnicities. Photo: SCMP/Cissy Zhou>

The flagship factory is known for aggressive hirings ahead of major product launches, giving a high turnover rate for its workforce of more than 1 million staff.

During the peak production season, the average monthly wage can range from 5,000 yuan to 7,000 yuan inclusive of extra work. During low seasons, the average wage can drop to between 3,000 yuan and 5,000 yuan, as overtime work becomes infrequent.

Foxconn’s officials did not respond to a request for comment on Sunday, outside normal business hours.

Apple’s next smartphone launch is one of its most anticipated events as the Cupertino, California-based company is counting on an upgrade with artificial intelligence (AI) built in to boost sales. It set the goal of shipping at least 90 million iPhone 16 devices in the second half of this year, a 10 per cent growth compared to the previous generation.

Apple faces more competitions from local phone makers including Huawei, Xiaomi and Oppo. As China’s smartphone market accelerated its growth momentum in the second quarter, Apple was squeezed out of top five vendors, with a 3.1 per cent year-on-year decline in shipment despite cutting prices to promote demand, according to data from IDC.

Greater China, Apple’s third-largest market comprising the mainland, Hong Kong and Taiwan, was the only declining regional market for Apple. The tech giant’s revenue in the region dropped 6.5 per cent to US$14.73 billion in the June quarter, compared with last year.

The uncertainty regarding the fate of much-anticipated Apple Intelligence in China’s market could also weigh on iPhone sales in the country.

Despite relocating some of its production bases out of China, Foxconn signed a deal in late July with the Henan provincial government for a new manufacturing project, for which it will invest 1 billion yuan to build new business headquarters and a research and development centre in Zhengzhou.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.