Foxconn Offers Higher Rates for Making Huawei Handsets Than Apple’s iPhones

Foxconn Technology Group, a major supplier for Apple, is reportedly offering higher hourly rates for workers producing Huawei smartphones compared to those manufacturing iPhones. The recruitment posts and information from labor agencies reveal that Foxconn’s FIH unit, which specializes in making Huawei handsets, is providing an hourly rate of 26 yuan (US$3.60) for new workers in its Shenzhen factory. This rate is higher than the 21 yuan offered to workers at Foxconn’s integrated Digital Product Business Group, responsible for manufacturing iPhones. The FIH unit mainly serves Huawei, assembling handsets and consumer electronics devices for the company.

The recruitment agents state that new hires at Foxconn will know which type of phone they will be making based on the factory’s demand, and currently, there is a higher chance of manufacturing handsets for Huawei. The increased hiring activity aligns with Apple and Huawei’s recent releases of 5G handsets, as both companies are in a production race in the world’s largest smartphone market. Apple launched the iPhone 15 series on Tuesday, receiving mixed reviews from Chinese consumers. Meanwhile, Huawei’s new Mate 60 Pro and Mate 60 Pro+ have generated enthusiasm due to advanced technology and a sense of national pride.

Various factors contribute to the discrepancy in hourly rates between the different units under Foxconn. The recruitment agent explains that FIH generally offers higher rates because the iPhone production unit tends to provide better welfare programs for workers. While Apple started iPhone 15 production in Foxconn’s Indian factory, the majority of the latest series will still be manufactured in China. Furthermore, Huawei has reportedly increased its smartphone shipment target for the second half of 2023 by 20%, driven by strong pre-sales of the Mate 60 Pro.

– China Business News (local newspaper)
– Securities Daily (Chinese newspaper)