Foxconn increases salaries and bonuses to attract 50,000 employees to produce iPhone 16 in China

Taiwan’s Foxconn, Apple’s largest partner, is hiring about 50,000 new workers at its Zhengzhou plant in China. This massive recruitment drive comes as the company ramps up production of the iPhone 16, which is scheduled to launch in the second half of this year.

Image source: Foxconn

According to Business Korea, at the end of July, Foxconn posted job vacancies on major job sites and social media platforms, offering increased hourly wages of up to 25 yuan (about $3.49). In addition, the Zhengzhou plant offered one-time bonuses of up to 7,500 yuan ($1,046), which is significantly higher than the 6,000 yuan ($837) bonus offered a month earlier.

Foxconn’s Zhengzhou plant is known as the world’s largest iPhone manufacturing base, and the recent hiring underscores the company’s desire to meet delivery targets for Apple products, for which August to December is considered the peak sales season. The move also comes amid speculation that Foxconn will leave China and relocate its production facilities. Contrary to rumors of a relocation, major foreign media reported on July 23 that Foxconn would build a new headquarters in Zhengzhou at a cost of about 200 billion won (approximately $148 million).

It is noted that Apple, which ranked first in the Chinese smartphone market in the fourth quarter of last year, saw sales fall by 19.1% in the first quarter of this year, falling to third place behind local companies Vivo and Honor. The decline is likely to increase pressure on both Apple, which has set a shipment target of 90 million iPhone 16 units, up 10% from last year, and Foxconn.

Foxconn’s role in global manufacturing, especially Apple products, is key. The world’s largest supplier of contract electronics manufacturing services and the largest private employer in China, Foxconn has significant influence on global supply chains. And the company’s recent decision to ramp up production and increase wages and benefits can be seen as a response to past controversies and an attempt to attract and retain labor to meet production needs.

It is worth saying that the Chinese smartphone market is highly competitive, where local brands pose a serious threat to international players such as Apple, and understanding the market dynamics and consumer preferences in China is critical to understanding the competitive pressures facing both Apple itself and its production partners.