Foxconn Hires 50,000 More Workers as Apple Boosts iPhone 16 Production

[MacRumors]

Apple has ramped up iPhone 16 production in expectation of high demand, leading Foxconn to hire 50,000 new workers in just two weeks, BusinessKorea reports.

Apple apparently decided to boost production by 10% this year, aiming for a total output of 90 million iPhone 16 models, in expectation of strong sales. The company has intensified production efforts with its primary manufacturing partner, Foxconn, in Zhengzhou, China. The factory, known as the world's largest iPhone production base, is now operating at full capacity, having brought in 50,000 additional workers within the last two weeks.

Foxconn's Zhengzhou facility is central to Apple's global supply chain, responsible for approximately 80% of the company's iPhone production. As the peak season for iPhone production typically begins in August and extends through December, Foxconn's recruitment drive is crucial in meeting the increased output required during this period. Local media outlets have reported that Foxconn has significantly raised wages and bonuses to attract the necessary labor force. In late July, the company advertised an increased hourly wage of up to 25 yuan and raised the hiring bonus from 6,000 yuan to 7,500 yuan as of August.

Apple is also reportedly planning to produce a larger variety of iPhone models in India starting with the iPhone 16 lineup. The new devices are expected to launch next month.

Article Link: Foxconn Hires 50,000 More Workers as Apple Boosts iPhone 16 Production

 

[sw1tcher]

Apple apparently decided to boost production by 10% this year, aiming for a total output of 90 million iPhone 16 models, in expectation of strong sales. The company has intensified production efforts with its primary manufacturing partner, Foxconn, in Zhengzhou, China. The factory, known as the world's largest iPhone production base, is now operating at full capacity, having brought in 50,000 additional workers within the last two weeks.

So much for Apple diversifying and moving manufacturing out of China.

Is quality from India's factory still not up to standards?

Only 50% of iPhone Casings Made in India Meet Apple's Quality Standards

Apple is facing difficulties scaling up its production operations in India amid poor component yields and slow progress, the Financial Times reports....

www.macrumors.com

 

[MilaM]

Ah, the mythical mega upgrade cycle. This year it will happen for real 🙌.

 

[jacobgkau]

an increased hourly wage of up to 25 yuan

That's about $3.49/hour USD, in case you're wondering like I was.

 

[MrMojo1]

Apple could/should expand its manufacturing in Vietnam to include iPhones, as well as in other countries.

"Vietnam, a hub for Apple, manufactures iPads, AirPods and Apple Watches in Vietnam, and suppliers for MacBooks are also investing in the country.
After India and Vietnam, Apple looks to manufacture products in Indonesia."

Bus. Standard, 2024 April

 

[vegetassj4]

They forgot to mention that they hired them to handle all of those extra Vision Pro returns and excess inventory.

:ducks:
🦆

 

[klasma]

That's about $3.49/hour USD, in case you're wondering like I was.

Hey, they’ll be able to afford an iPhone 16 with less than two months’ pay.

 

[sw1tcher]

an increased hourly wage of up to 25 yuan

That's about $3.49/hour USD, in case you're wondering like I was.

Also note that it's "up to" 25 yuan meaning not everyone is getting paid that. Some people are getting paid less, such as between 19 and 20 yuan

Foxconn’s hourly wages dip below US$3 in China amid Apple supply chain shift

Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year, as Apple diversifies production away from China.

www.scmp.com

Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year

19 yuan = ~$2.65 USD
20 yuan = ~$2.79 USD


If the iPhone 15 Pro has a starting price of $999 and workers are being paid between $2.65 USD per hour and $3.49 USD per hour, how much would an iPhone 15 Pro be if it were assembled in the U.S. where workers are being paid $20 per hour, there's no forced and mandatory over-time and 6 day work weeks, and under less harsh and abusive working conditions?

“iPhones are made in hell”: 3 months inside China’s iPhone city

Workers describe a peak production season marred by labor protests and Covid-19 chaos, right as Apple reconsiders its China supply chain.

restofworld.org

Investigation of an Apple Supplier: Chengdu Foxconn Report in 2023 : China Labor Watch

To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.

chinalaborwatch.org

Foxconn’s Chengdu factory is one of Apple’s main sourcing sites. Each fall when Apple releases a new line of products, workers labor around the clock to meet impossible production targets. Dispatch workers, or workers who do not directly sign labor contracts with factories but instead are outsourced by labor dispatch companies, make up approximately half of the workforce. The precarious nature of their employment makes them extremely susceptible to abuse. While Apple has gained a reputation for excellent product quality and customer service through its ‘AppleCare’ and ‘Genius Bar’ services, its reputation for labor rights is considerably less stellar. Despite Apple’s claims of having high standards when it comes to corporate social responsibility, year after year, serious labor rights violations occur on the factory floor.

From June to July 2023, CLW sent an investigator to Foxconn’s Chengdu factory to document the working conditions of Apple’s global supply chain. CLW’s investigation discovered that the problems uncovered in 2020 still exist in the factory. To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.

 

[Bigkool2inSC]

I hate to the be the hiring / HR department for that location...

 

[sw1tcher]

Hey, they’ll be able to afford an iPhone 16 with less than two months’ work.

During peak season, they can buy an iPhone with 1 months work.

“iPhones are made in hell”: 3 months inside China’s iPhone city

Workers describe a peak production season marred by labor protests and Covid-19 chaos, right as Apple reconsiders its China supply chain.

restofworld.org

Around this time, Foxconn launched an aggressive recruitment campaign to fill the posts vacated by fleeing workers. The company increased its daily and monthly attendance bonuses and bumped its hourly base pay. Recruits said they could make more than 10,000 yuan ($1,474) a month if they worked 10 hours a day, six days a week — nearly double the average salary in Henan province. “This is indeed a sky-high salary for frontline factory workers,” Han Song, a recruiter in Shenzhen who sent workers to Foxconn in Zhengzhou, told Rest of World over a messaging app.

 

[now i see it]

String up the nets

 

[adrianlondon]

Apple apparently decided to boost production by 10% this year, aiming for a total output of 90 million iPhone 16 models

Is there any breakdown into precise models? I'm curious how many pros vs base they reckon on selling.

 

[LogicalApex]

Also note that it's "up to" 25 yuan meaning not everyone is getting paid that. Some people are getting paid less, such as between 19 and 20 yuan

Foxconn’s hourly wages dip below US$3 in China amid Apple supply chain shift

Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year, as Apple diversifies production away from China.

www.scmp.com

Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year

19 yuan = ~$2.65 USD
20 yuan = ~$2.79 USD


If the iPhone 15 Pro has a starting price of $999 and workers are being paid between $2.65 USD per hour and $3.49 USD per hour, how much would an iPhone 15 Pro be if it were assembled in the U.S. where workers are being paid $20 per hour and under less harsh and abusive working conditions?

“iPhones are made in hell”: 3 months inside China’s iPhone city

Workers describe a peak production season marred by labor protests and Covid-19 chaos, right as Apple reconsiders its China supply chain.

restofworld.org

Investigation of an Apple Supplier: Chengdu Foxconn Report in 2023 : China Labor Watch

To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.

chinalaborwatch.org

Foxconn’s Chengdu factory is one of Apple’s main sourcing sites. Each fall when Apple releases a new line of products, workers labor around the clock to meet impossible production targets. Dispatch workers, or workers who do not directly sign labor contracts with factories but instead are outsourced by labor dispatch companies, make up approximately half of the workforce. The precarious nature of their employment makes them extremely susceptible to abuse. While Apple has gained a reputation for excellent product quality and customer service through its ‘AppleCare’ and ‘Genius Bar’ services, its reputation for labor rights is considerably less stellar. Despite Apple’s claims of having high standards when it comes to corporate social responsibility, year after year, serious labor rights violations occur on the factory floor.

From June to July 2023, CLW sent an investigator to Foxconn’s Chengdu factory to document the working conditions of Apple’s global supply chain. CLW’s investigation discovered that the problems uncovered in 2020 still exist in the factory. To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.

The price of the iPhone likely wouldn’t change dramatically as I am sure it is at the upper bounds of what Apple can charge. Apple profits would go down though as their margins would shrink.

 

[EugW]

Apple has ramped up iPhone 16 production in expectation of high demand, leading Foxconn to hire 50,000 new workers in just two weeks

Geez. They hired a whole city in two weeks.

How do we define cities, towns, and rural areas?

Because national definitions of urban and rural areas differ significantly from one country to another, it is difficult to compare these areas across national borders.

blogs.worldbank.org

Cities, which have a population of at least 50,000 inhabitants in contiguous dense grid cells (>1,500 inhabitants per km2)[/i]

 

[KillerTree]

Also note that it's "up to" 25 yuan meaning not everyone is getting paid that. Some people are getting paid less, such as between 19 and 20 yuan

Foxconn’s hourly wages dip below US$3 in China amid Apple supply chain shift

Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year, as Apple diversifies production away from China.

www.scmp.com

Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year

19 yuan = ~$2.65 USD
20 yuan = ~$2.79 USD


If the iPhone 15 Pro has a starting price of $999 and workers are being paid between $2.65 USD per hour and $3.49 USD per hour, how much would an iPhone 15 Pro be if it were assembled in the U.S. where workers are being paid $20 per hour, there's no forced and mandatory over-time and 6 day work weeks, and under less harsh and abusive working conditions?

“iPhones are made in hell”: 3 months inside China’s iPhone city

Workers describe a peak production season marred by labor protests and Covid-19 chaos, right as Apple reconsiders its China supply chain.

restofworld.org

Investigation of an Apple Supplier: Chengdu Foxconn Report in 2023 : China Labor Watch

To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.

chinalaborwatch.org

Foxconn’s Chengdu factory is one of Apple’s main sourcing sites. Each fall when Apple releases a new line of products, workers labor around the clock to meet impossible production targets. Dispatch workers, or workers who do not directly sign labor contracts with factories but instead are outsourced by labor dispatch companies, make up approximately half of the workforce. The precarious nature of their employment makes them extremely susceptible to abuse. While Apple has gained a reputation for excellent product quality and customer service through its ‘AppleCare’ and ‘Genius Bar’ services, its reputation for labor rights is considerably less stellar. Despite Apple’s claims of having high standards when it comes to corporate social responsibility, year after year, serious labor rights violations occur on the factory floor.

From June to July 2023, CLW sent an investigator to Foxconn’s Chengdu factory to document the working conditions of Apple’s global supply chain. CLW’s investigation discovered that the problems uncovered in 2020 still exist in the factory. To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.

What makes you think they’re abused?

 

[ChrisA]

If the iPhone 15 Pro has a starting price of $999 and workers are being paid between $2.65 USD per hour and $3.49 USD per hour, how much would an iPhone 15 Pro be if it were assembled in the U.S. where workers are being paid $20 per hour, there's no forced and mandatory over-time and 6 day work weeks, and under less harsh and abusive working conditions?

If the iPhone were designed to be assembled in the US, it would be designed differently so that much less human labor would be needed. For example, screws are very hard for robots to handle so the phone would not use them. There would be a lot of redesign so that the parts could be assembled by robots.

Do you remember then the Mac Pro line was built in Texas? Apple used only 160 employees on the assembly line. Almost all of the work was automated.

In China working at Foxconn is one of the worst jobs you can have (other than being a rural farm worker). Just look at the Tesla factory there, the Chinese plant makes $40K cars for the Chinese market and they sell every one of them. I is amazing that Foxconn can find 50,000 people who will accept the worst job with the worst pay. But their education system is competitive and I gues this is what happens to those who were not able to get into even a mid-tier school

 

[Ratlerbite]

Also note that it's "up to" 25 yuan meaning not everyone is getting paid that. Some people are getting paid less, such as between 19 and 20 yuan

Foxconn’s hourly wages dip below US$3 in China amid Apple supply chain shift

Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year, as Apple diversifies production away from China.

www.scmp.com

Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year

19 yuan = ~$2.65 USD
20 yuan = ~$2.79 USD


If the iPhone 15 Pro has a starting price of $999 and workers are being paid between $2.65 USD per hour and $3.49 USD per hour, how much would an iPhone 15 Pro be if it were assembled in the U.S. where workers are being paid $20 per hour, there's no forced and mandatory over-time and 6 day work weeks, and under less harsh and abusive working conditions?

“iPhones are made in hell”: 3 months inside China’s iPhone city

Workers describe a peak production season marred by labor protests and Covid-19 chaos, right as Apple reconsiders its China supply chain.

restofworld.org

Investigation of an Apple Supplier: Chengdu Foxconn Report in 2023 : China Labor Watch

To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.

chinalaborwatch.org

Foxconn’s Chengdu factory is one of Apple’s main sourcing sites. Each fall when Apple releases a new line of products, workers labor around the clock to meet impossible production targets. Dispatch workers, or workers who do not directly sign labor contracts with factories but instead are outsourced by labor dispatch companies, make up approximately half of the workforce. The precarious nature of their employment makes them extremely susceptible to abuse. While Apple has gained a reputation for excellent product quality and customer service through its ‘AppleCare’ and ‘Genius Bar’ services, its reputation for labor rights is considerably less stellar. Despite Apple’s claims of having high standards when it comes to corporate social responsibility, year after year, serious labor rights violations occur on the factory floor.

From June to July 2023, CLW sent an investigator to Foxconn’s Chengdu factory to document the working conditions of Apple’s global supply chain. CLW’s investigation discovered that the problems uncovered in 2020 still exist in the factory. To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.

Yet you still buy iPhones

 

[sw1tcher]

If the iPhone were designed to be assembled in the US, it would be designed differently so that much less human labor would be needed. For example, screws are very hard for robots to handle so the phone would not use them. There would be a lot of redesign so that the parts could be assembled by robots.

Do you remember then the Mac Pro line was built in Texas? Apple used only 160 employees on the assembly line. Almost all of the work was automated.

And why did Apple only need 160 people or so to assemble the Mac Pro? Could it be because Mac Pro sales aren't even 0.05% (or 100,000) of the 200 million+ iPhones sold each year?

It's also much easier to work on assembling a product when it's like 100x the size of an iPhone and uses few tiny parts.

 

[klasma]

What makes you think they’re abused?

The sources he provided, would be my guess.

 

[Hank001]

That's about $3.49/hour USD, in case you're wondering like I was.

Thanks you. I'm baffled as to why the author didn't post this info. Then again, it's MR. Not much journalism going on here.

 

[klasma]

Yet you still buy iPhones

He might even criticize politicians he has voted for.

 

[sw1tcher]

Yet you still buy iPhones

Ah, the Tu Quoque fallacy.

Yes, I still buy iPhones because work dictates that I have one and only when I need to. That usually means a 4-5 year upgrade cycle, unlike others who upgrade every 1-2 years. But what does this have to do with what I posted?

 

[Karma*Police]

That's about $3.49/hour USD, in case you're wondering like I was.

You have to keep in mind that the cost of living in China is substantially less, and these workers also don’t have to pay for food or rent.

That’s why many of them have enough money left over to send to their families and jobs like this are a stepping stone to better work/standard of living.

 

[Ratlerbite]

Ah, the Tu Quoque fallacy.

Yes, I still buy iPhones because work dictates that I have one and only when I need to. That usually means a 4-5 year upgrade cycle, unlike others who upgrade every 1-2 years. But what does this have to do with what I posted?

Well you’re posting about low wages, possible abuse etc. work doesn’t dictate you need an iPhone but still buy a phone built by under paid abused workers.

 

[ELman]

That's about $3.49/hour USD, in case you're wondering like I was.

And this is why companies manufacture products everyplace besides the U.S.