Foxconn Offers Higher Pay to Workers Producing Huawei Smartphones than iPhones

Taiwanese manufacturing giant Foxconn is reportedly offering a higher hourly wage to workers involved in producing Huawei smartphones in China compared to those engaged in manufacturing the latest iPhones.
Foxconn at a trade showAccording to reports, Foxconn’s FIH unit, responsible for Huawei smartphone production, is providing a competitive 26 yuan ($3.60) hourly rate to new workers at its Shenzhen factory. This surpasses the 21 yuan hourly rate offered at Foxconn’s integrated Digital Product Business Group (iDPBG), responsible for iPhone manufacturing.

Recruitment agents cited by the South China Morning Post noted that new hires are now more likely to be allocated to teams producing handsets for Huawei, reflecting the current demand dynamics.

While Apple and Huawei have both recently launched their flagship 5G smartphones in China, the world’s largest smartphone market, Apple has been diversifying its supply chain, particularly due to escalating geopolitical tensions. Apple is set to globally debut the ‘Make in India’ iPhone 15 on September 22.

Huawei started selling its latest high-end smartphones Mate 60 and Mate 60 Pro at the end of last month and last week it started presales for its Mate 60 Pro+ smartphone alongside a new foldable phone Mate X5.

Huawei Technologies on Thursday said it will hold a media event to discuss new products on Sept. 25, fanning expectations that details about recently released smartphones will be revealed.

Its Mate 60 series is in the spotlight – both for the use of a China-made advanced chip and because the series likely marks the first major attempt by Huawei’s smartphone business to come back from crippling U.S. sanctions.

Meanwhile, buyers of Apple’s new iPhone 15 Pro Max in some countries including China, Japan and the United States may have to wait until November to get the smartphone, an early sign of strong demand for the company as it started taking pre-orders on Friday, Reuters news report said.

Foxconn, the largest iPhone maker, has significantly increased its hiring in China in anticipation of the iPhone 15 series launch. The major plant located in Zhengzhou, the capital of central Henan province, is offering substantial bonuses of $880 per person within the Product Enclosure Business Group, responsible for crucial mechanical parts in iPhone production.

This proactive expansion of the workforce is aimed at preventing supply chain challenges witnessed last year, ensuring a smoother production and supply process for the forthcoming iPhone 15 series.

Foxconn had previously implemented bonus incentives for returning workers in June following disruptions in production and an exodus of workers. The company, integral to Apple’s manufacturing process, remains at the forefront of efforts to maintain efficient production and meet consumer demand for the latest technological advancements in the smartphone industry.