Apple is facing a huge problem. Due to a new COVID lockdown, iPhone production at the largest Chinese Foxconn plant could collapse by 30 percent next month. After the first employees have already fled, the only thing that can help now is more money.
iPhone manufacturer now digging deep into its pockets
Normally, Apple’s contract manufacturer Foxconn employs around 200,000 people in its largest iPhone production plant in faraway Zhengzhou. Currently, however, the iPhone manufacturer is having difficulty keeping all of these employees on site. Quite a few of them have already fled after COVID spread in Zhengzhou and there was a new lockdown. The workers feared that China’s zero COVID strategy would leave them stuck in the factory and unable to get out.
According to a recent report, Foxconn is now quadrupling the daily bonuses for its workers in order to ultimately attract enough employees to continue assembling iPhones (source: Reuters). In concrete numbers: Normally there’s a bonus of 100 Yuan per day for the employees in the factory. Now, however, Foxconn is paying 400 yuan in one fell swoop – equivalent to about 55 euros. Those who work more than 25 days receive a maximum bonus of 5,000 yuan per month. Those who “give their all” are said to be able to earn even more than 15,000 yuan. In relation: regular factory workers earn between 3,000 and 4,000 yuan. So Foxconn and Apple are currently enticing workers with huge bonuses.
Even longer waiting times loom
They don’t have much else to do if they don’t want to jeopardize the important Christmas business. After all, production of Apple phones could slump by 30 percent as a result of the latest developments. Not good, especially the iPhone 14 Pro and iPhone 14 Pro Max are in high demand. Long delivery times are already the order of the day. That’s why Foxconn not only wants to turn the tide via these publicized bonus payments, but also plans to ramp up production at another plant in Shenzhen.