Apple supplier Foxconn raises bonus for new assembly line workers as iPhone production heats up
- The world’s largest contract electronics manufacturer has increased bonus pay to new workers at its plant in Zhengzhou for a third time in a month
- There has been widespread speculation that Apple’s next 5G handset model, the iPhone 13, is set for a September launch this year
Each new recruit will receive a 7,500 yuan (US$1,158) bonus if they work for 90 days and be on duty for at least 55 days, according to the latest announcement posted by iDPBG on Thursday.
That amount is up from 6,500 yuan offered on April 26 and 6,000 yuan on April 15. It is also more than double the 3,500 yuan bonus offered at the end of March.
“As a matter of company policy and commercial sensitivity, we do not comment on any aspect of our specific operations or any work for any customer,” said Taiwan-based Foxconn in a statement on Friday.
The increased bonus pay for new recruits in Foxconn’s vast Zhengzhou facility, which has as many as 250,000 workers, is seen as an indicator of how the company is ramping up production for iPhones ahead of the usual launch of Apple’s flagship device in the second half of the year.
Inside China’s ‘iPhone City’, it’s full steam ahead
Foxconn’s activity in Zhengzhou also shows how China, the world’s second-largest economy and biggest smartphone market, remains important to the global electronics supply chain for major tech companies like Apple. It is a status bolstered by a developed production infrastructure, a deep labour pool and supportive local government policies.
That advantage and strong sales of the iPhone 12 helped Apple record a 42 per cent share of the global smartphone market’s first-quarter wholesale shipment revenue of US$113 billion, according to data from research firm Counterpoint.
5G iPhones push Apple to record second quarter in China
The hefty bonus pay for Foxconn’s new hires in Zhengzhou, however, has come at a time when iPhone assembly in another major smartphone market, India, is threatened by the Covid-19 pandemic.
Apple has maintained its leading position in India’s premium smartphone segment, where handset prices are more than US$400 per unit, with nearly a 48 per cent share in the March quarter. Apple has also made more than 1 million unit shipments of iPhones in the world’s second most populous country for two consecutive quarters, according to Counterpoint.
But as a second and more virulent wave of Covid-19 grips India, iPhone demand in the country could be affected. “Consumer demand will take a hit due to the ongoing Covid-19 wave and subsequent lockdowns,” said Counterpoint senior research analyst Prachir Singh.
