Foxconn Offers Summer Employee Bonus to Increase iPhone 14 Production

FoxconnEmployeeBonusJune2022Featured

Foxconn is in the midst of a summer hiring spree, and the world’s largest iPhone factory is offering a $1,345 bonus incentive for employees who stay for four months upon enrollment. Returning employees can receive $1,420 as a bonus if they stay four months. The move is likely to help Foxconn boost manufacturing numbers for the iPhone 14.

Foxconn Boosts Summer Bonus for iPhone 14 Production

According to the South China Morning Post, the Zhengzhou factory has began a new recruitment campaign that is offering bonus incentives to workers. This incentive is a means to get employees on board before the launch of the iPhone 14 in the fall.

Foxconn is currently looking for new trainees and assembly line workers. Each person that stays for four months gets 9,000 yuan ($1,345). This information arrives from a recruitment notice published by the Digital Product Business Group, a division of Foxconn responsible for iPhone production.

This news follows a series of ups-and-downs for Foxconn. The company began a hiring blitz in May, then quickly had to suspend hiring over COVID-19 related lockdowns. However, at the beginning of June, reports indicated that production of the iPhone 14 was “in full swing”.

With the plant in Zhengzhou accounting for 80% of iPhones released worldwide, this summer’s hiring blitz may have an impact on product availability in the fall. With China having a strict zero-COVID-19 policy, this may prove to be a challenge for Foxconn this summer.

By the Numbers

The $1,345 signing bonus for this summer is larger than the $1192 signing bonus for June of last year. However, last August saw one of the largest bonuses. Employees could receive $1,520 for staying on the job for ninety days.

Despite these efforts, it is likely current predictions suggest that the global shipment of smartphones is likely to shrink 3% this year. This is likely due to supply chain disruptions through China’s teetering economy.

This issue has only been exacerbated through COVID-19 lockdowns and the war in Ukraine. In total, the expectation is that smartphone shipments will reach 1.36 billion units this year. This number is down from 1.39 billion in 2021 according to data from Counterpoint Research.

For Cupertino, Apple has looked to India and Vietnam for the time being, however, the lack of skilled labor and government risks have paused these plans.

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