Foxconn boosts pay, bonuses at world’s top iPhone factory

Apple iPhone manufacturing partner Foxconn has raised pay and bonus packages for new hires at the world’s largest iPhone factory in China’s Zhengzhou.

Foxconn calls up the iPhone army for Apple

The company is offering recruits up to $424 as a bonus for at least 90-days work at the factory and is also offering existing employees referral bonuses of $71 to bring new people on board.

Hourly pay has reached 21 yuan (just under $3), according to a WeChat post by Foxconn’s Digital Product business Group, as cited by South China Morning Press.

This isn’t particularly unusual.

Foxconn has been offering up bonuses and increasing pay to tempt workers at this part of the iPhone manufacturing cycle for as long as I can remember.

However, this is the third time the company has raised worker benefits this month as the company seeks sufficient staff to meet Apple’s initial orders for iPhone 15. That new device is expected to ship in fall.

What’s happening?

The high pay reflects three critical factors:

• Chinese workers have increased expectations. They want to be properly paid, and following well publicized problems at the factories, pay needs to be tempting.
• Apple wants its iPhones and Foxconn wants to make them for the company. It has already lost some of its lead manufacture advantages on account of iPhone supply problems in the last couple of years. This impacted Apple’s revenues.
• While setting up factories outside China, Foxconn also wants to demonstrate that it remains committed to the country and to maintaining iPhone manufacturing there.

Foxconn is also committed to India, where it plans to add two more buildings to its existing factories. India may assemble up to 50% of iPhones by 2027, up from around 5% today, Digitimes has said.

The race is on to produce iPhones in India. Just recently, Apple confirmed it has added more India-based companies to its component supply chain. Despite this expansion Apple remains deeply connected to China, where 151 of its suppliers are presently based, though it is encouraging partners to set up shop in India, Vietnam, and elsewhere.

Apple CEO Tim Cook recently described his optimism for Apple’s business in India: “India is at a tipping point,” he said. “You can just feel the vibrancy, the dynamism, the feeling that anything here is possible. And it’s so great to be a part of it.”

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