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Foxconn hires 50,000 new workers to ramp up iPhone 16 production in China

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Taiwan's Foxconn, Apple's largest partner, has hired around 50,000 new workers at its Zhengzhou factory in China, local media reported on August 8. This significant recruitment drive comes as the factory ramps up production of the iPhone 16, which is scheduled for release in the second half of this year.

In late July, Foxconn posted recruitment information on major job sites and social networking services (SNS) platforms, offering an hourly wage of up to 25 yuan (approximately 4,800 won), an increase from the previous rate. Furthermore, the Zhengzhou factory is offering bonuses of up to 7,500 yuan, a significant increase from the 6,000 yuan bonus offered just a month ago.

The August-to-December period is considered the peak season for iPhone shipments, with Apple aiming to ship 90 million units of the iPhone 16, a 10% increase from last year's target. According to a Bloomberg report, the iPhone 15 shipped around 81 million units in the second half of last year.

As the world's largest iPhone production base, Foxconn's Zhengzhou factory has embarked on a massive hiring spree, demonstrating the company's commitment to meeting Apple's ambitious shipment targets.

Apple, which topped the Chinese smartphone market in the fourth quarter of last year, saw its sales plummet 19.1% in the first quarter of this year, slipping to third place behind local rivals Vivo and Honor. This decline in sales has likely put additional pressure on both Apple and Foxconn to ensure a successful launch and robust sales of the iPhone 16.

Foxconn plays a pivotal role in global manufacturing, particularly when it comes to producing Apple products. The company's decision to boost production and offer higher wages and bonuses reflects the intense competition in China's labor market, particularly in manufacturing hubs like Zhengzhou.

China's smartphone market is fiercely competitive, with local brands posing significant challenges to international players like Apple. To fully understand the competitive pressures faced by Apple and its manufacturing partners, it's essential to grasp the market dynamics and consumer preferences in China.

While Foxconn continues to produce iPhones and other Apple products in China, the Taiwanese company also plans to leverage its factory in Sriperumbudur, India to manufacture the iPhone 16 Pro and iPhone 16 Pro Max. This would be the first time that Apple has had any current iPhone Pro models built in India. Apple still hopes to eventually move all production out of China to avoid potential tariffs on imports from China.

Editor:Vicky

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