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Foxconn Adds 50,000 Workers For Zhengzhou Plant

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Ahead of Apple’s iPhone 16 launch next month, Foxconn has employed 50,000 new workers and increased remunerations in its Zhengzhou manufacturing unit, eyeing 10% shipment increase.

Foxconn is ramping up hiring and increasing wages at its largest iPhone factory in Zhengzhou, Henan, China, preparing for the September release of Apple’s iPhone 16. The company has added over 50,000 new workers in the past two weeks, as reported by Chinese media.

Hourly wages at the Zhengzhou factory have risen from 25 yuan (US$3.49) in July to 26 yuan (US$3.63) in August. Additionally, according to the National Business Daily, returning workers with prior experience are eligible for bonuses of up to 7,500 yuan.

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Foxconn, also known as Hon Hai Precision Industry, operates other major factories in Shenzhen, Chengdu, and Yantai, aside from its Zhengzhou hub in China. The Zhengzhou factory is already known for its aggressive hiring strategies ahead of major product launches, contributing to a high turnover rate among its workforce of over 1 million.

As per reports, during peak production periods, workers can earn between 5,000 and 7,000 yuan per month, including overtime. In slower periods, wages may decrease to between 3,000 and 5,000 yuan due to reduced overtime.

Apple’s upcoming iPhone 16 launch is highly anticipated. The company aims to ship at least 90 million units in the second half of the year, marking a 10% increase from the previous model.

However, Foxconn has not revealed any information about this as of now.

Apple is encountering increased competition from local smartphone brands such as Huawei, Xiaomi, and Oppo in China. In the second quarter, as the country’s local smartphone market gained momentum, Apple dropped out of the top five vendors, experiencing a 3.1% YoY shipment decline despite reducing prices to stimulate demand, according to IDC data.

Greater China, which includes mainland China, Hong Kong, and Taiwan, was the only region where Apple saw a decline. Compared to the previous year, the company’s revenue in this market fell by 6.5% to $14.73 billion in the June quarter.

Concerns about the anticipated launch of Apple Intelligence in China could further impact iPhone sales in the region.

Although Apple has moved some of its production out of China, Foxconn recently signed a deal with the Henan provincial government for a new manufacturing project. This initiative includes a 1 billion yuan investment to develop new business headquarters and a research and development centre in Zhengzhou.

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Shubha Mitra
Shubha Mitra
Shubha is a journalist at EFY. She is keenly interested in India's evolving electronics ecosystem. Her focus revolves around government policies, legislation, and public-private partnerships related to the industry.

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