Foxconn, a leading Taiwanese multinational electronics contract manufacturer, is reportedly offering higher hourly pay for workers who manufacture Huawei smartphones in China compared to those who produce iPhones. This move is seen as a significant shift in the smartphone manufacturing industry.
Foxconn’s Pay Structure
Foxconn’s FIH unit, which is responsible for producing Huawei smartphones, is offering a 26 yuan ($3.60) hourly rate for new workers at its factory in Shenzhen. This rate is higher than the 21 yuan hourly rate offered at Foxconn’s integrated Digital Product Business Group (iDPBG), which manufactures iPhones.
According to a recruitment agent, new hires will be allocated to different teams based on current demand, and these days they have a higher chance of manufacturing handsets for Huawei. Both Apple and Huawei have recently launched their flagship 5G handsets in China, the world’s largest smartphone market.
Apple’s Diversification Strategy
While China remains Apple’s most important production center, the tech giant has been diversifying its supply chain due to rising geopolitical tensions. Notably, Apple will sell the ‘Make in India’ iPhone 15 on the global sales day (September 22) for the first time.
In preparation for Apple’s launch of the iPhone 15 series, Foxconn, which is the largest iPhone maker, had increased hiring in China. Foxconn’s major plant in Zhengzhou, capital of central Henan province, is offering $880 as bonuses per person at the company’s Product Enclosure Business Group, which is responsible for producing mechanical parts for the iPhone.
The world’s largest iPhone factory continues to expand its workforce ahead of the release of the iPhone 15. This move aims to avoid last year’s supply chain issues at the plant in China. In June this year, Foxconn offered larger bonuses to returning workers following a worker exodus and production disruptions.
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