Foxconn Expands Workforce by 50,000 at Zhengzhou Facility in Preparation for Apple’s iPhone 16 Launch

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August 11, 2024

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Foxconn Expands Workforce by 50,000 at Zhengzhou Facility in Preparation for Apple’s iPhone 16 Launch

The assembler, also known as Hon Hai Precision Industry, recruited more than 50,000 workers in Zhengzhou over the past two weeks, according to Chinese media reports

Foxconn, the world's largest assembler of Apple devices, is increasing its workforce and wages at its iPhone manufacturing facility in Zhengzhou, Henan province, in anticipation of the September launch of Apple’s iPhone 16. According to Chinese media reports, the company, also known as Hon Hai Precision Industry, has hired over 50,000 workers in Zhengzhou in the past two weeks.

The factory's hourly wage has increased to 26 yuan (US$3.63) in August from 25 yuan in July, with a bonus of up to 7,500 yuan available for returning employees who have prior experience at the plant, as reported by the National Business Daily, citing labor agencies.

In addition to its Zhengzhou hub, Foxconn operates other factories in Shenzhen, Chengdu, and Yantai.

A poster describing the qualifications for Foxconn workers in Zhengzhou on 22 February 2019: age between 16 and 40, nine-grade diploma, no Tibetan and Uyghur ethnicities

The flagship factory is known for aggressive hirings ahead of major product launches, giving a high turnover rate for its workforce of more than 1 million staff.

During peak production seasons, Foxconn workers can earn an average monthly wage ranging from 5,000 to 7,000 yuan, including overtime pay. However, during low seasons, average wages drop to between 3,000 and 5,000 yuan as overtime becomes less frequent.

Foxconn officials did not respond to a request for comment on Sunday, which was outside normal business hours.

Apple's upcoming smartphone launch is one of the year’s most highly anticipated events. The Cupertino, California-based tech giant is betting on an AI-powered upgrade to drive sales. Apple has set a target to ship at least 90 million iPhone 16 units in the second half of the year, marking a 10 percent increase compared to the previous generation.

However, Apple faces growing competition from local smartphone manufacturers like Huawei, Xiaomi, and Oppo. As China’s smartphone market gained momentum in the second quarter, Apple was pushed out of the top five vendors, experiencing a 3.1 percent year-on-year decline in shipments despite price cuts aimed at boosting demand, according to IDC data.

Greater China, Apple’s third-largest market, including the mainland, Hong Kong, and Taiwan, was the only region where Apple’s revenue declined. The tech giant reported a 6.5 percent drop in revenue to US$14.73 billion in the June quarter compared to the same period last year.

The uncertainty surrounding the reception of Apple’s AI technology in China could further impact iPhone sales in the country.

Despite relocating some of its production outside of China, Foxconn signed a deal in late July with the Henan provincial government to invest 1 billion yuan in a new manufacturing project. The investment will fund the construction of new business headquarters and a research and development center in Zhengzhou.

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