Foxconn factories in China on hiring spree ahead of Apple's AI-compatible iPhone 16 launch

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Contract electronics manufacturer Foxconn is ramping up hiring in the world's biggest iPhone plant in Zhengzhou, capital of central Henan province, as Apple gears up for the launch of its next-generation handset this autumn.

The iPhone assembler, also known as Hon Hai Precision Industry, is offering a 25 yuan (US$3.44) hourly rate and a bonus of up to 7,500 yuan for returning workers previously employed by the Zhengzhou factory, according to recruitment posts published by the company this week.

The package is a step up from the 6,000 yuan bonus offered a month ago by Foxconn's "A" unit, formerly known as the Integrated Digital Product Business Group, which is the company's main iPhone production team.

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"The peak season for Foxconn's Zhengzhou plant is happening now: high-paying jobs for temporary workers and returning employees," read a job post by a local labour agency, one of several promoting opportunities at the factory.

Apple's next smartphone launch is one of its most anticipated in recent years because all models of the coming iPhone 16 are expected to support the US tech giant's new artificial intelligence (AI) features arriving early next year.

The Cupertino, California-based company is counting on the AI upgrade to boost sales, with the goal of shipping at least 90 million iPhone 16 devices in the second half of this year, a 10 per cent growth compared to the previous generation, according to a report by Bloomberg on Thursday citing unnamed sources.

However, it remains unclear when Apple's AI features will become available in China, where the internet services market is heavily regulated, and domestic brands are already aggressively adopting AI in their handsets.

Apple, which led smartphone sales in mainland China in the fourth quarter last year, lost its throne after sales fell 19.1 per cent in the first quarter amid rising competition from local rivals including Huawei Technologies, according to market research firm Counterpoint.

The US brand currently ranks third in the country, behind Vivo and Huawei spin-off Honor.

Apple has sought to defend its position by offering steep discounts on iPhones, a move that helped increase sales by 2.7 per cent year on year during China's midyear online shopping season known as 618, Counterpoint data showed.

In preparation for the new iPhone, Foxconn is also increasing salaries at its campus in China's southern tech hub of Shenzhen to between 21 yuan and 22 yuan for temporary workers, job posts published by various recruitment agencies this week showed.

The factory, located in the city's Longhua district, is promising returning permanent workers a monthly salary of up to 6,000 yuan for the first three months and a pay rise if they stay longer, according to the plant's official recruitment post on Monday.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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