The world’s largest iPhone factory in Zhengzhou, China has caused trouble for Apple due to strict corona measures. Last year, the factory could not produce enough iPhone 14 Pro and 14 Pro Max models, affecting the group’s Christmas business. However, this year, Apple is hoping for smooth production and the main producer, Foxconn, is attracting thousands of new employees through an advertising campaign.
Zhengzhou, located in central China, faced numerous lockdowns and worker protests against the local government’s pandemic management by the end of 2022. The situation only returned to normal in December 2022, but many workers had already left for their hometowns. As a result, the important Christmas business for Apple was affected, especially since the iPhone 14 Pro and 14 Pro Max were manufactured exclusively in Zhengzhou.
To address the production difficulties in China, Apple expanded capacities in India. However, it will likely take time for the production volumes from China to catch up. Nevertheless, Apple has no plans to entirely move away from China.
To improve production in Zhengzhou, Foxconn is advertising higher bonuses for workers. Former workers who return to the plant will receive 8,000 yuan (around 1,000 euros), while those who recruit new permanent employees will receive 1,000 yuan (around 130 euros). New hires who stay at the plant for at least four months will be rewarded with a one-time payment of 7,000 yuan ($900).
Recruitment agencies in Zhengzhou are preparing for the upcoming peak season by building a talent pool. The hourly rate for both temporary and permanent employees is 21.5 yuan, and employees are guaranteed overtime.
Foxconn’s CEO, Liu Young-way, has rejected reports that the company plans to change its supply chain away from China. The new iPhone models are expected to be released in September as usual.
